Minimum Wage

Minimum Wage

The minimum wage is a critical social economic safeguard, setting a wage floor that should allow workers to meet their basic needs. The national minimum wage was first instituted in 1938 as a central feature of the Fair Labor Standards Act (FLSA). The Act also established overtime and child labor standards. It has been amended many times to increase the wage or expand coverage. Workers in some industries, such as agriculture, are exempt. The minimum wage is set by Congress, not by an independent agency as President Franklin Roosevelt originally proposed. It is not pegged to the cost of living and the real value of the federal minimum wage lags behind inflation. As a result, many states and cities have set their minimum wage rates higher than the federally mandated wage.

Commentary

Consider the Source: 100 years of Broken Record Opposition to the Minimum Wage

March 09, 2013

Chamber of Commerce, Wrong Again

May 19, 2011

Cry Wolf Quotes

Under these inflationary pressures many of the industries and small businesses employing marginally trained or unskilled workers will be forced to cut back on the number of those employees or go out of business. The very worker that the Federal minimum wage was intended to aid will find himself out of work.

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Mickey Edwards (R-OK), Congressional Record.
04/26/1977 | Full Details | Law(s): Minimum Wage

A closer look at the unemployment [nearly 10 percent unemployment rate] suggests that minimum wage laws also deserve a big share of the blame….businesses are not charities and that they only create jobs when they think a worker will generate net revenue. Higher minimum wages, needless to say, are especially destructive for people with poor work skills and limited work experience.

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Dan Mitchell, senior fellow, Cato Institute.
06/15/2010 | Full Details | Law(s): Minimum Wage

[The Fair Labor Standards Act] constitutes a step in the direction of communism, bolshevism, fascism, and Nazism.

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The National Association of Manufacturers. 1938.
04/21/1938 | Full Details | Law(s): Fair Labor Standards Act

The truth is that if your labor is worth $6.75 an hour and the minimum wage is raised to $7.75, you simply become unemployable. The first rung of the ladder is gone, and there's no place to start….This legislation is the ultimate expression of the cruelest of all human lies: ‘I'm from the government, and I'm here to help.'

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Tom McClintock, California Republican state senator. The Los Angeles Times.
04/11/2006 | Full Details | Law(s): Minimum Wage

Related Laws and Rules

Evidence

Backgrounders & Briefs

Good Rules: Ten Stories Of Successful Regulation

Demos looks at ten laws and rules that we take for granted.

Minimum Wage Policy Brief

By Professor Stephanie Luce

The idea of minimum wage laws has been around for more than a century. They are still a good idea.

Resources

Raise the Minimum Wage is a project of the National Employment Law Project. The effort is devoted to preserving the wage floor by raising the federal minimum wage.

University of California-Berkeley Labor Center carries out research on labor and workplace-related issues.

The National Employment Law Project is an organization that promotes economically just public policy in the face of the prevailing trends of the law several decades.