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History of the minimum wage
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"No family gets rich from earning the minimum wage. In fact, the current minimum wage does not even lift a family out of poverty." -- Jon Corzine Many people can think back and remember what it was like to put in an application for that first job and be presented with a position. Taking that position represents adulthood and is a very exciting time for a young person. All first jobs usually start with a minimum wage. Minimum wage is the minimum an employer has to pay an unskilled worker based on the regulations set forth by the Fair Labor Standards Act (FLSA) that was originally established in 1938. As people think back about their first jobs they can also remember what the minimum wage was when they took that position. Minimum wage is only increased based on the cost of living from the prior year. If the previous year shows an increase then the minimum wage will increase in the coming new year. Sinegal (2009) stated "The increase in the minimum wage is long overdue. Paying your employees well is not only the right thing to do but it makes for good business". Based on the cost of living we show for the year of 2009 minimum wage will not increase for 2010. Minimum wage is currently at $7.25 per hour. Most people who start at this rate are young people who are in high school or college and are working a few hours to help pay for school. After they graduate they can apply for better jobs and move on. People who live in areas without growth, single mothers trying to raise their children, and uneducated people are working more than one minimum wage job to make enough money to pay their financial obligations. While the cost of living did not increase, minimum wage is low because no increase is planned for 2010 a... ... middle of paper ... ...year’s cost of living. What constitutes cost of living to the federal government and it that assessment being addressed fairly? Minimum wage is too low. The federal government must raise the minimum wage so that the average American will not need to continue to work multiple jobs. References The Department of Labor. (2010). Compliance Assistance - Fair Labor Standards Act (FLSA). Retrieved from http://www.dol.gov/whd/flsa/index.htm The Department of Labor. (2010). [Graph Table State Minimum Wage] Fair Labor Standards Act (FLSA) Retrieved from http://www.dol.gov/whd/minwage/america.htm About.com US Government Info. (2009). The Federal Minimum Wage. Retrieved from http://usgovinfo.about.com/blminimumwage.htm Sinegal, J. (2009). Business for Fair Minimum Wage. Quotable Quotes. Retrieved from http://www.businessforafairminimumwage.org/Quotes
United States Department of Labor. "U.S. Department of Labor - Wage and Hour Division - U.S. Department of Labor-General Information on the Fair Labor Standards Act (FLSA)." U.S. Department of Labor - Wage and Hour Division -
The minimum wage was, as it should be, a living wage, for working men and women ... who are attempting to provide for their families, feed and clothe their children, heat their homes, [and] pay their mortgages. The cost-of-living inflation adjustment since 1981 would put the minimum wage at $4.79 today, instead of the $4.25 it will reach on April 1, 1991. That is a measure of how far we have failed the test of fairness to the working poor.” (Burkhauser 1)
The Web. The Web. 16 Feb. 2014. " U.S. Department of Labor - Wage and Hour Division (WHD) - Minimum Wage."
The Fair Labor Standards Act (FLSA) was originally enacted in 1938. The law is enforced by the Wage and Hour Division of the U.S. Department of Labor, and includes 5 major provisions that protect employees. (TEXT) The five provisions include: coverage, minimum wage, overtime pay, youth employment, and record keeping. Coverage refers to the types of workers whom are protected by the FLSA. The FLSA also handles compensation issues like minimum wage, commissions, bonuses, expenses like room and board and other various deductions. To ensure that employees receive adequate compensation for working additional hours the FLSA has developed rules governing overtime pay. The Act also created and implemented rules governing youth
The article discusses the minimum wage has not kept up with the current cost of living, and that it is
"When we talk about the kind of folks whose lives will be made better by raising the minimum wage, we're not talking about a couple teenagers earning extra spending money to supplement their allowance. We're talking about providers and breadwinners. Working Americans with bills to pay and mouths to feed."
Minimum wage is a difficult number to decide on because it affects different income earning citizens in different ways. According to Principles of Microeconomics, by N. Gregory Mankiw, minimum wage is a law that establishes the lowest price for labor that and employer may pay (Mankiw 6-1b). Currently, the minimum wage in the United States is $7.25 per hour. For many years politicians and citizens have argued on what should be the minimum wage that would benefit the economy and society in general. A minimum wage was first established in 1938 to increase the standard of living of lower class workers. To discuss what is better for the country and its citizens, people have to understand what is a minimum wage and what are its effects.
U.S. Department of Labor. 2014. “History of Federal Minimum Wage Rates Under the Fair Labor
The FLSA is managed and implemented by the Wage and Hour division of the United States Department of Labor. “The Wage and Hour Division (Wage-Hour) administers and enforces FLSA with respect to private employment, State and local government employment, and Federal employees of the Library of Congress, U.S. Postal Service, and Postal Rate Commission. The FLSA is enforced by the U.S. Office of Personnel Management for employees of other Executive Branch agencies, and by the U.S. Congress for covered employees of the Legislative Branch.” “The law generally applies to all employees of specific enterprises having workers engaged in interstate commerce, producing goods for interstate commerce, or handling, selling, or otherwise working on goods or materials that have been moved in or produced for interstate commerce.” However, workers that are not covered by the FLSA may still be subject to its minimum wage, overtime pay, recording, and child labor provisions if they are individually engaged in interstate commerce or in the production of goods for interstate commerce, or in any closely-related process or occupation directly essential to such production.
(8) U.S. Dept. of Labor, Family and Medical Leave Act – Wage and Hour Division (WHD) (http://www.dol.gov/whd/fmla/), 2013, Website
The definition of Minimum Wage is “an amount of money that is the least amount of money per hour that workers must be paid according to the law” (Minimum wage). Minimum wage, like other laws, are used to keep the economy in line. Minimum wage laws were invented in Australia and New Zealand with the purpose of guaranteeing a minimum standard of living for unskilled workers. (Linda Gorman) Minimum wage puts a price on the services one offers. Many different principles can be used to explain Minimum wage and explore the different aspects of it. Including what minimum wage does for our economy and the current status of it.
Today the federal minimum wage is $5.15, but should be about $8.50 if Congress had adjusted it for inflation over the past 35 years. While $5.15 may not seen that bad, when factoring in such variables as sky rocketing gas prices, budgets can get pretty tight. David Shepard, a sophomore at Wayne State University, worked at a Meijer Retail and Grocery Superstore for over two years while in high school. At the time Shepard lived with his parents and didn’t have to worry about paying rent or buying groceries, all that he had to pay for was filling up his gas tank and paying for his car insurance. Shepard recalled, “It was all I could do to pay for the basics like gas and bill’s, I barely had any money to have fun on the weekends”. This is only an example of a high school student that can nearly slip by on minimum wage with only a few expenses. There are 1.8 million people in America with children under the age of 18 that would benefit from an increase in minimum wage (Minimum).
"Raising the minimum wage will benefit about 28 million workers across the country. And it will help businesses, too - raising the wage will put more money in people's pockets, which they will pump back into the economy by spending it on goods and services in their communities." -- President Obama
UNITED STATES DEPARTMENT OF LABOR. (n.d.). U.S. Department of Labor. Retrieved February 5, 2014, from http://www.dol.gov
“Of course, nothing helps families make ends meet like higher wages. … And to everyone in this Congress who still refuses to raise the minimum wage, I say this: If you truly believe you could work full-time and support a family on less than $15,000 a year, go try it. If not, vote to give millions of the hardest-working people in America a raise.”