Table of Contents
Who controls minimum wage state or federal government?
The federal minimum wage is regulated by the Fair Labor Standards Act (FLSA) and enforced by the U.S. Department of Labor. Although the federal minimum wage rate is subject to change, it has not increased since 2009.
Does Congress determine minimum wage?
Overview. The national minimum wage was created by Congress under the Fair Labor Standards Act (FLSA) in 1938. Congress enacted this legislation under its authority in Article I, Section 8 of the U.S. Constitution: “The Congress shall have power to . . . regulate commerce . . .
How is minimum wage determined in the United States?
Minimum wage rates are determined by factors such as poverty threshold, prevailing wage rates as determined by the Labor Force Survey, and socio-economic indicators (i.e. inflation, employment figures, Gross Regional Domestic Product, among others), which insures better workers protection.
Who enforces the federal minimum wage?
The U.S. Department of Labor
The U.S. Department of Labor enforces the Fair Labor Standards Act (FLSA), which sets basic minimum wage and overtime pay standards. These standards are enforced by the Department’s Wage and Hour Division.
Who is exempt from federal minimum wage?
Federal law exempts entirely from minimum wage requirements groups of workers such as white collar employees (those employed in executive, administrative, professional, or outside sales positions), farm workers employed on small farms, seasonal recreational employees, and companions for the elderly.
Do states have to pay federal minimum wage?
States are required to follow federal minimum wage law. States can pass their own laws to make the wage higher, equal to or lower than the federal law, but they can’t make other changes that overrule the federal law, for instance, who is exempt or how many hours constitutes a work week.
Can a state pay less than federal minimum wage?
Does state minimum wage supercede federal?
An element of the FLSA is the federal minimum wage law. However, in the 18 states with state laws that set the minimum wage higher than the federal minimum wage, such as California and Florida, the state law supersedes the federal law.
Why do the governments set a minimum wage?
The purpose of minimum wage laws is to prevent employers from exploiting desperate workers. The minimum wage should provide enough income to afford a living wage. That is the amount needed to provide enough food, clothing, and shelter. Although the minimum wage protects workers from exploitation, it hasn’t kept pace with inflation.
What state has the highest minimum wage?
Excluding Washington, D.C.’s $15.20 hourly minimum wage, California has the highest in the country at $14 per hour. Washington and Massachusetts are close behind, with $13.69 per hour and $13.50 per hour, respectively.
Who really makes the minimum wage?
The minimum wage is established by Congress and enforced by the Department of Labor. The living wage is a subjective concept calculated by policymakers and advocacy groups that works backward to calculate a wage to cover the basic needs and expenses of individuals in particular areas.
Why should we not raise the minimum wage?
In this article, read on to see 4 reasons why countries should NOT increase the minimum wage. 1. Raising the minimum wage risks inflation and hurts the middle class. If the minimum wage were to increase, employers will be required to pay more money to pay their employees. Therefore, the employer will pass that extra cost on to the consumer.