Minimum Wage U S. Department of Labor

minimum wage in usa

The Department of Labor’s Wage and Hour Division enforces these rights. From start to finish, the California law, which was backed by the Service Employees International Union, has been controversial. “I was surprised at how little, or how difficult it was to find disemployment effects. Some were the result of automatic adjustments, while others came via new state laws or ballot initiatives. The underlying data are based on CBO’s February 2023 economic forecast, which was developed by the agency’s Macroeconomic Analysis Division.

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Characteristics of minimum wage workers

This interactive tool—developed and updated by the Congressional Budget Office—allows users to explore the effects of policies that would increase the federal minimum wage, which is $7.25 per hour and has not changed since 2009. Nearly 9% of hourly food preparation and service workers make the minimum wage or less, the highest of any occupation type; for personal care and service workers, 2.4% earn the federal minimum or less. Of all remaining occupations, 1.1% or fewer hourly workers earn minimum wage. In states with no minimum-wage law (Alabama, Louisiana, Mississippi, South Carolina, and Tennessee) or minimum wages below the federal minimum wage (Georgia and Wyoming), the federal minimum wage of $7.25 applies.

Information on the Youth Minimum Wage ProgramA minimum wage of not less than $4.25 may be paid to employees under age 20 for their first 90 consecutive calendar days of employment, as long as their employment does not displace other workers. In states that do not set a minimum wage rate, or have an antiquated minimum wage rate that is less than the minimum wages rate set by the Federal government, the Federal minimum wage rate will take precedence and apply to all employees within that state. The Vermont minimum wage is automatically replaced with the federal minimum wage rate if it is higher than the State minimum. The New York minimum wage equals the federal minimum wage when set below the federal rate.

Change in the Number of People Entering and Leaving Poverty

2488, the Raise the Wage Act of 2023, CBO estimated how an option for increasing the minimum wage to $17 would affect the federal budget. However, a list of sources for more information is available in Appendix B of The Effects on Employment and Family Income of Increasing the Federal Minimum Wage. The size of any option’s effects on employment and family income are very uncertain for two main reasons. While 2.9% of hourly workers ages 16 to 24 earn $7.25 an hour or less, 1.1% of hourly workers ages 25 to 34 earn the minimum wage.

  • Links to these websites are available at /agencies/whd/state/contacts.
  • The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act when the federal rate is greater than the State rate.
  • Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.
  • If the minimum wage in a particular area is less than the estimated living wage, the suggestion is that earnings from a full-time minimum-wage job are not enough to support someone without additional income or aid.
  • However, Law 47 of 2021 (the Puerto Rico Minimum Wage Act)[74] changed paths in Puerto Rico’s minimum wage schemes.

To backers, it is a step toward fair compensation for low-wage workers who faced significant risk during the pandemic. To opponents, it is a cataclysmic move that will raise food prices, lead to job losses and force some franchisees to consider closing. The nation’s highest state minimum wage for fast-food workers takes effect on Monday.

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