Minimum wage in America: How many people are earning $7 25 an hour?

Thirteen states have minimum wages equal to the federal minimum, and two states – Wyoming and Georgia – have minimum wages below the federal minimum wage. The minimum wage has been raised twenty-two times since 1938’s $0.25. We’re currently in the longest period since an increase has been applied to the minimum wage, which was last raised in July 2009. In 2021, the Biden-Harris administration signed an executive order to raise the minimum wage to $15 for federal contractors. Signed by President Franklin D. Roosevelt in 1938, the Fair Labor Standards Act established a mandatory federal minimum wage of 25 cents an hour.

Biden’s $15 Contractor Minimum Wage Clears Tenth Circuit Hurdle

• The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act.
• If you have a specific recommendation, you can reach us at [email protected].
• Scroll over the chart to see the US federal minimum wage through history, and what it would be worth in today’s dollars.
• Sometimes this higher wage applies only to businesses that contract with the local government, while in other cases the higher minimum applies to all work.

“Exempt” employees either earn a fixed salary that’s not hour-dependent or have weekly pay above a certain threshold (currently, $684), making them exempt from the minimum wage (and often from overtime pay). Commissioned salespeople, mechanics, people working at seasonal and recreational establishments, and computer professionals are commonly exempt. “A higher minimum wage in a high-income, tech-heavy city like Seattle may not spell doom for small businesses there because they should have more latitude to pass the increased cost on to their customers,” it added. The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). Some state laws provide greater employee protections; employers must comply with both.

Federal budget deficit

A cornerstone of that promise is the Fair Labor Standards Act’s (FLSA) requirement that when most workers work more than 40 hours in a week, they get paid more. The Department of Labor’s new overtime regulation is restoring and extending this promise for millions more lower-paid salaried workers in the U.S. Georgia and Wyoming have the lowest state-mandated minimum wage, at $5.15. This minimum wage applies when employees are not subject to federal wage law, which applies when an employee is exempt, or doesn’t meet coverage requirements.

Less-educated people were more likely to earn the minimum wage than college graduates

When President Franklin D. Roosevelt signed America’s first federal minimum wage into law in 1938, it was 25 cents per hour. The “Grand Bargain” passed in 2018 raised wages on an annual schedule, phasing out time-and-a-half while prohibiting employers from requiring work on Sundays and holidays against employee wishes. In states that do not set a minimum wage rate, or have an antiquated minimum wage rate that is less than the rate set by the Federal government, the Federal minimum wage rate will take precedence and apply to all employees within that state.

If by July 1, 2024, the Minimum Wage Review Commission decides the wage ought to be higher than 10.50, it will decree so. The law also provided employees of local businesses not covered by the Fair Labor Standards Act of 1938 with protections, Minimum Wages in USA and their wages, though not immediately increased by the law, will be evaluated and increased by the Review Commission. However, Law 47 of 2021 (the Puerto Rico Minimum Wage Act)[74] changed paths in Puerto Rico’s minimum wage schemes.

• At least 4 million workers are expected to be impacted by the final rule by 2025.
• These standards are enforced by the Department’s Wage and Hour Division.
• Some state laws provide greater employee protections; employers must comply with both.
• Jobs that a minimum wage is most likely to directly affect are those that pay close to the minimum.
• The BLS is committed to providing data promptly and according to established schedules.

I am paid for my work and am not shy about demanding compensation – though, like many teachers, I often do more than I am required. I don’t mind it because what I get from helping students overcome their circumstances is worth more to me than my hourly wage. The Tenth Circuit had paused enforcement of the policy against recreational businesses that have a permit to operate on federal property while the appeal was ongoing. To be eligible for minimum wage, an employee must be both covered and nonexempt. Lower-paying entry-level jobs are needed “to start a worker’s ascent up the career ladder,” according to the US Chamber of Commerce.

• The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information.
• Applicable to all employees covered by the federal Fair Labor Standards Act (FLSA) except for agricultural employees and employees of municipalities and the Commonwealth of Puerto Rico.
• In advance of the July 1 and January 1 deadlines, all employers with salaried workers should audit the exempt status and salaries for their employees to ensure compliance with the DOL’s final rule.
• Additionally, some local governments set minimum wage rates higher than their respective state minimum wage.
• Time and one-half premium pay for work on Sundays and holidays in retail and certain other businesses is required under two laws that are separate from the minimum wage law.

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