California workers who earn the minimum wage will see their pay increase to $8 per hour starting Jan. 1, 2008. California and Massachusetts have the nation’s highest state minimum wages.
The increased minimum wage was approved by Gov. Arnold Schwarzenegger in September 2006, when the California Legislature approved a two-phased increase to $7.50 per hour in 2007 and to $8 per hour in 2008.
The minimum wage increase also affects the hourly base rate of pay for computer software employees who are considered exempt. This base rate of pay is one factor employers use when determining whether computer software employees are exempt from overtime. The hourly base rate effective Jan. 1, 2008 is $36.