23-363. Minimum wage
(Caution: 1998 Prop. 105 applies)
A. Employers shall pay employees no less than the minimum wage, which shall be six
dollars and seventy-five cents ($6.75) an hour beginning on January 1, 2007.
B. The minimum wage shall be increased on January 1, 2008 and on January 1 of
successive years by the increase in the cost of living. The increase in the cost of
living shall be measured by the percentage increase as of August of the immediately
preceding year over the level as of August of the previous year of the consumer price
index (all urban consumers, U.S. city average for all items) or its successor index as
published by the U.S. department of labor or its successor agency, with the amount of the
minimum wage increase rounded to the nearest multiple of five cents.
C. For any employee who customarily and regularly receives tips or gratuities from
patrons or others, the employer may pay a wage up to $3.00 per hour less than the minimum
wage if the employer can establish by its records of charged tips or by the employee's
declaration for federal insurance contributions act (FICA) purposes that for each week,
when adding tips received to wages paid, the employee received not less than the minimum
wage for all hours worked. Compliance with this provision will be determined by averaging
tips received by the employee over the course of the employer's payroll period or any
other period selected by the employer that complies with regulations adopted by the
commission.
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