Raising it could lift lowincome workers out of poverty, but it might also kill jobs and potentially hurt the economy. Some states have used a multipletrack minimum wage system, with a menu of wages that di. The federal minimum wage is applicable nationwide, and overrides any state laws that provide a lower minimum wage rate to ensure that the local minimum wage in. Minimum wage raises could lower suicide rates, study says it was the latest study to suggest that effects of wage increases reach beyond economic welfare, but. Minimum wage raises could lower suicide rates, study says it was the latest study to suggest that effects of wage increases reach beyond economic welfare, but some experts pushed back on the findings. Fair labor standards act flsa minimum wage poster u. The systems goal is to make sure that federal trade, craft, and laboring employees within a local wage area who perform the same duties receive the same rate of pay. Congress has raised the minimum wage only three times in 30 years. Ontario views a strong minimum wage as an essential part of its poverty reduction strategy. The federal wage system fws is a uniform paysetting system that covers federal appropriated fund and nonappropriated fund bluecollar employees who are paid by the hour. The latter include citylevel minimum wages in seattle, chicago, new york city and washington, d. Additional information about the federal minimum wage may be. Apr 30, 2020 the federal minimum wage is the minimum hourly wage employers are required to pay employees who are eligible under the fair labor standards act flsa of 1938.
An employer must pay the highest wage rate that applies, whether it is the state minimum wage rate or the federal minimum wage rate. State law requires that the state or federal minimum wage, whichever is higher, be used to determine hours of participation in tanf. The federal minimum wage sets a national floor below which employers generally cannot pay their workers. In cases where an employer is subject to both a federal and a. The federal minimum wage provisions are contained in the fair labor. Declining value of the federal minimum wage is a major factor.
The federal minimum wage does not increase automatically. The executive order states that the federal governments procurement interests in economy and efficiency are promoted when the federal government contracts with sources that. Preemption lawsuits currently ongoing in kansas city, mo, louisville, ky, and. The minimum wage for employees under federal jurisdiction is the general adult minimum wage rate established in each province and territory, as revised from time to time. Chapter 30 records, minimum wage, and payment of wages pdf. Each time a province or a territory raises its minimum wage rate, the federal minimum wage rate for that province or territory is raised automatically. Characteristics of minimum wage workers, 2015 bureau of labor. The flsa was generally only applicable to employees involved in interstate commerce, either directly or through the creation of goods. Pro 2 increasing the minimum wage would reduce poverty. While the nominal minimum wage has not changed since 2009, changes in the economy and other factors have impacted the minimum wage or below population.
Percentage of hourly workers making the minimum wage 17or less in 2015 who were hispanic or latino. The federal minimum wage is the minimum hourly wage employers are required to pay employees who are eligible under the fair labor standards act flsa of 1938. The percentage of hourly paid workers earning the prevailing federal minimum wage or less declined from 3. Many states also have their own minimum wage laws, some of which provide greater employee protections. Employers must post a minimum wage information poster in their establishment. Equally significant, cities today are calling for higher minimum wages than ever before. The federal minimum wage provisions are contained in the fair labor standards act flsa. Minimum wage in the federally regulated private sector. As the states minimum wage is lower than federal minimum wage, the federal rate applies. The united states congress must pass a bill, which the president signs into law, in order for the minimum wage to go up. Bureau of labor statistics calculates the earnings series2 and the cpiw. From january 1, 2017, to january 1, 2022, the minimum wage will increase for employers employing 26 or more employees. Each time a province or a territory raises its minimum wage rate, the federal minimum wage rate.
The flsa was generally only applicable to employees involved in interstate commerce, either directly or. C with a minimum wage higher than the federal minimum. The provisions require the minimum wage to be adjusted based. Number of hourly workers who were paid the federal minimum wage or less in 20157. Click on the link for the minimum wage poster large color, small color, large black and white, or small black and white and wait for it to load into the viewer.
It covered approximately onefifth of workers in alabama, arkansas, and mississippi. In order to view andor print pdf documents you must have a pdf viewer e. Federal minimum wage rate is linked to a consumer price index, which is intended to raise the rate along with inflation. However, because the federal minimum wage remains at the same level unless congress acts, its purchasing power erodes as the cost of living rises. Federal register establishing a minimum wage for contractors. Why the minimum wage deserves your maximum attention. Jan 02, 2015 the 2015 minimum wage by state guide below does not reflect specific monetary values for minimum wages for local jurisdictions city, county, districts, tipped wages, staterequired cost of living adjustment cola, child labor laws, all training wages, minimum revenue exceptions, etc.
Large increases in the minimum wage are likely to destroy. The 2015 minimum wage by state guide below does not reflect specific monetary values for minimum wages for local jurisdictions city, county, districts, tipped wages, staterequired cost of living adjustment cola, child labor laws, all training wages, minimum revenue exceptions, etc. Employers generally have to pay workers the highest minimum wage prescribed by federal, state, and local law. Minimum wage colorado department of labor and employment. Gtm recommends employers prepare for upcoming changes to. May 09, 2019 pro 2 increasing the minimum wage would reduce poverty.
Raising the federal minimum wage williams institute. A reassessment david autor, alan manning, and christopher l. The tipped minimum wage has been frozen for nearly 25 4years. The federal minimum wage provisions are contained in the flsa. We consider this issue through a set of simple illustrative exercises, whereby the u. Although there are some exceptions, almost all employees in california must be paid the minimum wage as required by state law. Fact sheet minimum wage in nevada prepared by kristin rossiter and jered mcdonald second revised august 2015 research division legislative counsel bureau establishment and authority the nevada constitution establishes a minimum wage for the state of nevada in article 15, section 16a. Section 2 of executive order 658 therefore establishes a minimum wage for federal contractors and subcontractors.
Number of states plus dc with a minimum wage higher than the federal minimum wage. Lawmakers are considering proposals to raise the minimum wage. Casual employees covered by the national minimum wage also get at least a 25% casual loading. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages. Some state laws provide greater employee protections. The contents are designed to enhance the knowledge of procurement personnel and others whose responsibilities include work with the service contract act and the davisbacon and. This pdf is the current document as it appeared on public inspection on 10012014 at 11. The current minimum wage rate is reevaluated yearly based on these values. The data are obtained from the current population survey cps, a national monthly. The effects of a minimumwage increase on employment and. For award and agreementfree junior employees, the percentage scale in the miscellaneous award is applied to the national minimum wage.
Neither minimum wage goes up unless congress acts, which means they lose value over time. Federal minimum hourly wage for nonfarm workers for the. On february 12, 2014, president barack obama signed executive order 658, establishing a minimum wage for contractors the executive order or the order. In 1979, the federal minimum wage covered about onetenth of workers in massachusetts, new jersey, and new york. Effective january 1, 2017, the minimum wage for all industries will be increased yearly. Paid total at or below prevailing federal minimum wage. The minimum wage in the united states is set by us labor law and a range of state and local laws. The flsa does not provide wage payment collection procedures.
1639 1045 160 1598 1583 1508 98 267 568 135 1312 1645 1251 122 919 1399 249 1169 123 1647 745 1115 1162 475 1594 379 844 374 912 197 6 1292 763 52 1023 663 1009 207 1450 303 328 1494 225 596 750 798 233