This chart shows state minimum wage rates in effect as of jan. Moving towards a minimum wage tied to inflation is a modest step towards achieving this goal. Changes in monetary thresholds and minimum wage in 2016 in what could be construed as an under the radar move, in late 2015, the office of federal contract compliance programs ofccp quietly changed federal contractors contract threshold amounts for coverage under the vietnam era veterans readjustment. Amongst black workers, the percentage was about 3%. Subsequent annual adjustments of the wage increase, according to a specified formula, shall ensure that it remains equal to the wage in effect under. Colorado and south dakota provided increases to the minimum wage rates. Navigating a federal minimum wage tied to inflation. In at least 29 states and cities the minimum wage will be going up in the new year. According to the economic policy institute, this modest increase would. The federal minimum wage peaked in 1968 business insider. Adjusted for inflation, the federal minimum wage is worth. Federal minimum wage rate and state minimum wage rate for. State minimum wages 2020 minimum wage by state ncsl.
The fair labor standards act flsa determines the minimum wage for employees in private and public sectors, in both federal and state governments. The systems goal is to make sure that federal trade, craft, and laboring employees within a local wage area who perform the same duties receive the same rate of pay. From 2016 through 2020, the minimum wage will increase annually on a set. About 2% of white, asian, and latino workers earned the federal minimum wage or less. State and local minimum wage increases in 2016 shrm. For residential employees, the overtime rate applies after 44 hours. Pro 2 increasing the minimum wage would reduce poverty. The economic folly of the living wageminimum wage nonsense is as plain as day to anyone with eyes to see. July 24, 2016 marks seven years since the federal minimum wage was last increased. Whereas, a fulltime, yearround worker earning the current minimum wage earns less than the federal poverty threshold for a family of two. As will be discussed in greater detail later in the report, there are several possible indices for the minimum wage.
Eight out of the 11 states that currently tie increases to the cost of living did not increase their minimum wage rates for 2016. Other state and local increases are slated for later in the year. Employers operating a factory, mercantile establishment, hotel, restaurant, freightpassenger elevator, or theater. The debate over raising the federal minimum wage has heated up in the past few years. Do you favor or oppose increasing the minimum wage. The minimum wage rate is the lowest hourly pay that can be awarded to workers, also known as a pay floor. In addition to setting the federal minimum wage rate, the flsa provides for. The federal minimum wage is the minimum hourly wage an employee in the united states can be paid for their services.
Sanders urged president barack obama to sign an executive order so that every federal contract worker in this country is paid a living. The states with the highest median wage all have a minimum wage at least one dollar above the federal minimum. Federal minimum wage, taxtransfer earnings supplements. Increasing the federal minimum wage february 2016 the. Ideology is measured on a scale of 17, with 1 corresponding to extremely liberal, 7 corresponding to extremely conservative, and 4 corresponding to in the middle. Annual minimumwage earnings and poverty line for families of two to four, 1964 20 and projected for 202016 under proposal to raise the.
When the state minimum wage rate is higher than the federal rate, workers are paid the higher amount. The percentage of hourly paid workers earning the prevailing federal minimum wage or less declined from 3. It is no surprise that increasing the federal minimum wage has been one of the most heavily debated subjects during the 2016 presidential election, and investigating the components of these proposed policies are essential for economic stability, growth. Maybe the right way to win and, hey, educate voters is to explain that the minimum wage should be eliminated at the federal level because it hurts workers.
The raise the wage act introduced by murray and backed democratic leadership would increase the federal minimum wage. Some states have lower minimums for smaller businesses or. The new york minimum wage equals the federal minimum wage when set below the federal rate. Annual minimumwage earnings and poverty line for families of two to four, 196420 and projected for 202016 under proposal to raise the. Double the federal minimum wage the new york times.
Minimum wages in american samoa relative to the federal minimum wage, 19572016 american samoas gross domestic product gdp per capita is less than a quarter of the u. Characteristics of minimum wage workers, 2016 in 2016, 79. Federal minimum wage has not changed in a decade, and 21. Please note that some employees are exempt from minimum wage requirements, and others can be paid at a lower rate than the minimum wage. Five more states vote on minimum wage as federal wage. While the federal minimum wage remains unchanged, a number of states and cities will be hiking local wage rates on jan. Read 2016 presidential candidate positions clinton, trump, johnson, stein, sanders, cruz, rubio, bush, etc. The state adopts the federal minimum wage rate by reference if the federal rate is. New york state has been raising its minimum wage since 2016. Georgias minimum wage law can be found in the official code of. Under a voluntary flexible work hour plan approved by the alaska department of labor, a 10 hour day, 40 hour. The following list contains state minimum wage data as of 12312015. Under the federal fair labor standards act, states and localities are permitted to set their own minimum wage rates, which will take precedence over the federal minimum wage rate if they are higher.