Unpaid Internships and the Minimum Wage

As reported yesterday by the Wall Street Journal (Colleges, Employers Rethink Internship Policies) unpaid interns continue to cause labor law issues for companies and non-profit organizations, leading to the elimination of some internships and the conversion of others to paid positions meeting minimum wage and overtime standards.

California's minimum wage is presently $8.00 per hour, but rises to $9.00 on July 1, 2014, and is then slated to increase to $10.00 on January 1, 2016.

Federal Minimum Wage Increase

The federal minimum wage increases from $5.85 to $6.55 per hour, effective today, July 24, 2008. The minimum wage will increase to $7.25 next year.

Note that the California minimum wage applicable to California employers and employees is already higher than the current or future federal increases.

California Minimum Wage for 2008 Increases to $8.00 Per Hour

As mentioned here last year, California's minimum wage increased to $8.00 per hour, effective January 1st, 2008. The 2008 rate represents a 6.7% increase over the old (2007) minimum wage, which was $7.50 per hour.

Some employees are exempt from the minimum wage law.

Others are covered by a higher wage law: San Francisco increased its minimum wage to $9.36, also effective January 1, 2008.

The federal minimum wage for those employees not covered by state or local minimum wage laws, remains at $5.85, until July 24, 2008, at which time it will increase to $6.55, and then $7.24 a year later.

Updated California work place posters for employers can be found here: http://www.dir.ca.gov/wpnodb.html