Since my last post determined I was not subject to California labor law due to working on a Navy base, my friend had a question that also peaked my curiosity. He manages a fast food restaurant on the base. He was wondering if he could lower his costs by paying Federal minimum wage to his employees instead of the California minimum wage?

The answer is a qualified maybe. However, there is no way I would do this without contacting the DLSE and/or a competent employment law attorney for advise.

I know from experience the pressures managers are under to improve profit, but with CA minimum wage going to $7.50 and Federal at $5.15, is he expecting to hire indentured servants?

Unless there are no other jobs with 20 miles....

I wouldn't recommend it.

Thank you for your responses. They do sort of have indentured servants, as many commands will not allow their personnel to moonlight anywhere but an establishment on base.

They're not even considering lowering it, it was just curiosity. The unemployment rate here is so low, nobody makes minimum wage anymore. Even at the fast food restaurants. Though, when they raise minimum wage to $7.50/hr there will be many people making minimum wage again.