President signs bill raising the federal minimum wage

On May May 25th, 2007 President Bush signed legislation that increases the federal minimum wage to $7.25 an hour. The U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 (H.R. 2206), which provides $120 billion primarily for the wars in Iraq and Afghanistan, includes a provision raising the federal minimum wage to $5.85 an hour beginning July 24, 2007, $6.55 an hour starting a year later, and $7.25 an hour, beginning two years later.

The bill also contains a $4.84 billion small business tax relief package and includes an extension of the Work Opportunity Tax Credit (WOTC). Congress approved the war funding bill on May 24.

For more information please visit:
http://hr.cch.com/news/payroll/053007a.asp