Minimum Wage

11 Pages 2643 Words

It’s Time to Raise the Minimum Wage

The current minimum wage does not allow a full-time worker supporting a two-person family to reach the federal poverty line. However, increasing the minimum wage is not a simple undertaking. There are many concerns and questions to address. Business owners are concerned about the expense of raising the minimum wage. Many legislators believe the majority of the minimum wage workforce is teenagers earning money for luxuries. This report will discuss the history of the minimum wage, exceptions to the regulation, demographics of the minimum wage workforce, real value of the minimum wage, and economic feasibility of raising the minimum wage. Based on my research, it is my recommendation that the minimum wage should be raised.


The Beginning of the Minimum Wage: The Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) of 1938 set the work week and overtime guidelines, child labor restrictions, and the first minimum wage. Opponents of the act resented the governmental mandates on private business operations. Organized labor unions were concerned that the minimum wage would become a maximum rather than a beginning point. The proponents of the action wished to improve the living conditions of the working poor and create new jobs by shortening hours and setting overtime standards (Cong. Dig., 2000). The federal minimum wage is currently $5.15 per hour.


Exceptions to the Minimum Wage Regulation

Employers are allowed to pay only 50 percent of the minimum wage to employees who regularly receive $30 per month in tips. The employee must receive at least the minimum wage when the hourly pay and tips are combined. Several states wage/hour laws remove this exception from the law (Cong. Dig, 2000). This exception shifts the burden to pay employees from the employers, to the customers and employees themselves. Earning tips is difficult in businesses with fewer customers, low...