Federal governments use minimum wage laws to ensure a basic quality of life among all citizens within its borders . These laws attempt to improve an individual’s position in the economic income brackets. Rather than have copious amounts of underpaid or poor citizens, minimum wage laws seek a level of economic equality.
Should the government control minimum wage?
Raising the minimum wage strengthens workers’ purchasing power and, in turn, provides a boost to the overall economy. Raising the minimum wage would also help close the racial wealth gap, which is at historic levels. The current federal minimum is lower in real value than in 1956.
Why should the government raise the federal minimum wage?
Raising the minimum wage to $15 in 2025 would lift up to 3.7 million—including an estimated 1.3 million children—out of poverty. Raising the minimum wage to $15 would help ensure that more low-wage workers are paid enough to cover basic living expenses , i.e., a wage providing a modest yet adequate standard of living.
What is federal minimum wage?
The federal minimum wage for covered nonexempt employees is $7.25 per hour. Many states also have minimum wage laws. 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.
What’s the federal minimum wage for 2020?
| State 2020 Minimum Wage | Delaware $9.25 | Washington D.C. $15.00 | Florida $8.56 | Georgia $5.15 (Employers subject to Fair Labor Standards Act must pay the $7.25 Federal minimum wage.) |
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Will I get a raise if minimum wage goes up?
Raising the minimum wage means that business owners and employees in the United States are legally required to raise the hourly wage for their minimum wage workers—and only their minimum wage workers. If you’re already earning above minimum wage, your employer won’t be required to give you a pay increase too.
What happens if a state’s minimum wage is lower than the federal minimum wage?
What Happens if a State’s Minimum Wage Is Lower Than the Federal Minimum Wage? In places where the state minimum wage is lower than the federal wage, workers who come under the Fair Labor Standards Act earn the federal wage . If workers don’t come under the FLSA, they can be paid less.
What is considered a living wage 2020?
In 2020, the Department of Health and Human Services set the federal poverty level at $26,200 for a family of four. 5 That’s equivalent to about $12.60 per hour for a full-time worker. A living wage must at least be greater than the poverty level .
Who decides federal minimum wage?
The federal minimum wage is regulated by the Fair Labor Standards Act (FLSA) and enforced by the U.S. Department of Labor . Although the federal minimum wage rate is subject to change, it has not increased since 2009.
Who gets federal minimum wage?
The federal minimum wage applies to workers who have positions with enterprises that qualify for coverage under the Fair Labor Standards Act . These organizations and businesses must employ at least two people and meet one of two additional qualifying standards, according to the U.S. Department of Labor.
Who qualifies for federal minimum wage?
To whom does the minimum wage apply? The minimum wage law (the FLSA) applies to employees of enterprises that have annual gross volume of sales or business done of at least $500,000 .
What are some exceptions to the federal minimum wage?
Federal law provides minimum wage exceptions under specific circumstances for (1) workers with disabilities , (2) full-time students, (3) employees under 20 years old in their first 90 consecutive days of employment, (4) tipped employees, (5) student learners, (6) apprentices, and (7) messengers.
Is federal minimum wage going up in 2021?
Effective January 1, 2021, the minimum wage increases to $14 per hour for employers with 26 or more employees and $13 per hour for employees with 25 or fewer employees. The minimum wage shall be adjusted on a yearly basis through 2023 according to the pre-set schedule shown above.
Is federal minimum wage going up?
Federal Action
If enacted, the Raise the Wage Act of 2021 would immediately lift the federal minimum wage to $9.50 an hour and incrementally increase it to $15 an hour over the course of five years , with annual indexing to median wage growth thereafter.
What happens if minimum wage is increased?
Raising the minimum wage would increase the cost of employing low-wage workers . As a result, some employers would employ fewer workers than they would have under a lower minimum wage. ... Changes in employment would be seen in the number of jobless, not just unemployed, workers.
What are the pros of raising minimum wage?
- #1: The Standard of Living Would Improve. ...
- #2: Economic Activity Would Increase. ...
- #3: Productivity Would Improve. ...
- #1: Small Businesses Would Primarily Suffer. ...
- #2: Unemployment Would Rise. ...
- #3: Inflation Would Rise.
