Beginning January 1, 2018, all minimum wage rates will increase annually by the national implicit price deflator or 2.5%, whichever is lower. [11][12], A 2016 Pew survey found that 52% of voters supported a $15 federal minimum wage with 89% of Black, 71% of Latino, and 44% of white voters in favor. This might be offset by fewer government benefits paid, as some workers with higher incomes would receive fewer government transfer payments. A 2019 Congressional Budget Office report agreed. The minimum wage, the lowest hourly amount that an employee may be paid for their labor, … The strike brought national attention to the plight of the low wage textile workers, and pushed the state legislatures, who feared the magnitude of the strike, to enact progressive labor legislation. However, some states, cities, and counties have a higher minimum wage rate. 206: Arizona voters approve $12 minimum wage", "Minimum Wage | City of Flagstaff Official Website", "Voters in Arkansas just gave 300,000 workers a raise", "State of California, Department of Industrial Relations", "Gov. President Donald Trump has both opposed and supported raising the minimum wage. Democrat or Republican: Which Political Party Has Grown the Economy More? Five years later, FLSA included state and local government employees. The CBO notes that it does not consider the inflationary effects of these policies when estimating the change in poverty level as these estimates, while increasing inflation, are uncertain. [2] Employers generally have to pay workers the highest minimum wage prescribed by federal, state, and local law. “The real value of the federal U.S. minimum wage is at a historic low,” Autor said. Currently, 29 states plus the District of Columbia have implemented higher wages than what the federal government mandates. The .gov means it’s official. From September 1, 1997 through July 23, 2007, the federal minimum wage remained constant at $5.15 per hour, breaking the old record. U.S. Department of Labor. Accessed Oct. 26, 2020. .manual-search ul.usa-list li {max-width:100%;} [58] Since the start of these protests, a number of states and cities have increased their minimum wage. "[116] CEPR found in a later study that job creation within the United States is faster within states that raised their minimum wage. Download the NBC News app for breaking news and politics. [304], The minimum wage for tipped-employees increased to $4.45 per hour as of July 1, 2019; and $5.00 per hour as of July 1, 2020. According to the Bureau of Labor Statistics, the percentage of hourly paid workers earning the current federal minimum wage or less went down from 2.1% in 2018 to 1.9% in 2019. Finally, minimum wage laws benefit individual businesses. [CDATA[/* >