State Minimum Wages: An Overview (Paperback)

State Minimum Wages: An Overview By Congressional Research Servicw Cover Image

State Minimum Wages: An Overview (Paperback)

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The Fair Labor Standards Act (FLSA), enacted in 1938, is the federal legislation that establishes the general minimum wage that must be paid to all covered workers. While the FLSA mandates broad minimum wage coverage, states have the option of establishing minimum wage rates that are different from those set in it. Under the provisions of the FLSA, an individual is generally covered by the higher of the state or federal minimum wage. As of 2018, 29 states and the District of Columbia have minimum wage rates above the federal rate of $7.25 per hour, with rates ranging from $0.25 to $6.00 above the federal rate. Two states have minimum wage rates below the federal rate and five states have no state minimum wage requirement. The remaining 14 states have minimum wage rates equal to the federal rate. In any given year, the exact number of states with a minimum wage rate above the federal rate may vary, depending on the interaction between the federal rate and the mechanisms in place to adjust the state minimum wage. Adjusting minimum wage rates is typically done in one of two ways: (1) legislatively scheduled rate increases that may include one or several increments; (2) a measure of inflation to index the value of the minimum wage to the general change in prices. Of the 29 states and the District of Columbia with minimum wage rates above the federal rate, 10 currently have no scheduled increases beyond 2018, while 9 states have legislatively scheduled rate increases after 2018. A total of 11 states and the District of Columbia currently, or will in a future year, index state minimum wage rates to a measure of inflation. Because the federal and state minimum wage rates change at various times and in various increments, the share of the labor force for which the federal rate is the binding wage floor has changed over time. Since 1981, there have been three series of increases in the federal minimum wage rate-1990-1991, 1996-1997, and 2007-2009. During that same period, there have been numerous changes in state minimum wage policies. As a result of those interactions, the share of the U.S. civilian labor force living in states in which the federal minimum wage is the floor has fluctuated but generally declined, and is about 39% as of 2017.
Product Details ISBN: 9781986425322
ISBN-10: 1986425320
Publisher: Createspace Independent Publishing Platform
Publication Date: March 11th, 2018
Pages: 44
Language: English