Minimum Wage

The federal minimum wage was established in 1938, as part of the Fair Labor Standards Act (FLSA), to ensure that all work would be fairly rewarded and that regular employment would provide a decent quality of life. Congress makes periodic amendments to the FLSA to increase the federal minimum wage; however, since the 1960s, Congress has adjusted the federal minimum wage infrequently, enacting raises that have never been adequate to undo the erosion in the minimum wage’s value caused by inflation. This decline in purchasing power means low-wage workers have to work longer hours just to achieve the standard of living that was considered the bare minimum almost half a century ago. The decline in the value of the minimum wage has contributed to wage stagnation, and is directly responsible for widening inequality between low- and middle-wage workers.

In light of Congressional inaction, many states, cities, and counties have enacted their own higher minimum wages, with EARN groups providing the key research and analysis evaluating proposed minimum wage increases. In doing so, they are taking steps to help workers afford their basic needs, bring them closer to the middle class, and ensure that even the lowest-paid workers in their jurisdictions will benefit from broader improvements in wages and productivity.

As of 2017, the federal minimum wage was worth 25 percent less than it was in 1968.

There are 7 states that have no minimum-wage law or a minimum wage below the federal minimum wage. The federal minimum wage applies in all of these states.

Publications

Publication

New Mexicans are Worth More: Raising the State’s Minimum Wage

While a handful of New Mexico municipalities – including the cities of Albuquerque, Las Cruces, and Santa Fe, and Bernalillo and Santa Fe counties – have raised their minimum wages in recent years, the state-wide minimum wage has not been raised since 2009. Still at $7.50 an hour, its purchasing power has eroded considerably over that timeframe. In fact, when you factor in inflation, that $7.50 buys only $6.30 worth of goods today. If the wage had been adjusted for inflation, it would now be $8.95 an hour. While New Mexico’s minimum wage has remained stagnant and lost purchasing power, 28 states, including Colorado and Arizona, have increased their state minimum wages. As these states have found, raising the minimum wage benefits thousands of working families and local economies.

Publication

New Mexicans are Worth More: Raising the State’s Minimum Wage

This report makes the case for raising the minimum wage in New Mexico, which is currently $7.50. The report includes various demographics of the state’s low-wage workforce. It also demonstrates how a wage increase benefits small businesses and the economy. The report’s policy proposals include raising the state minimum wage to $10 in 2020 with incremental increases until it is $12 by 2022, and still allowing municipalities to enact minimum wage laws that reflect the desires of their community as long as they meet the state minimum.

Publication

Economic Agenda for a Thriving Commonwealth: Improve Job Quality

Improving job quality and economic security is one of the five key strategies in KCEP’s “Economic Agenda for a Thriving Commonwealth.” Kentucky can make real progress in these areas by updating existing and enacting new commonsense job quality standards. The successful experience of states that raise standards shows businesses benefit through increased productivity, reduced turnover and stronger consumer spending. Our whole commonwealth will benefit when paychecks better reflect the contributions Kentuckians make through work every day, and when work supports rather than detracts from leading healthy, fulfilling lives.

New Mexicans are Worth More: Raising the State’s Minimum Wage

While a handful of New Mexico municipalities – including the cities of Albuquerque, Las Cruces, and Santa Fe, and Bernalillo and Santa Fe counties – have raised their minimum wages in recent years, the state-wide minimum wage has not been raised since 2009. Still at $7.50 an hour, its purchasing power has eroded considerably over that timeframe. In fact, when you factor in inflation, that $7.50 buys only $6.30 worth of goods today.[iii] If the wage had been adjusted for inflation, it would now be $8.95 an hour. While New Mexico’s minimum wage has remained stagnant and lost purchasing power, 28 states, including Colorado and Arizona, have increased their state minimum wages.[iv] As these states have found, raising the minimum wage benefits thousands of working families and local economies.[v]

In order for children to have nourishing environments where they can thrive, families need to be economically secure so they have the ability to invest in their children’s futures. If the state passes legislation to increase the minimum wage incrementally until it is $12.00 an hour by 2022 – and protects workers by prohibiting training wages and allowing municipalities to enact even higher wages – nearly a quarter of a million workers will see their wages rise as $204.8 million a year is added to their paychecks. This achievable policy reform will vastly improve the state’s overall well-being and give families, children, older adults, people of color, and women more opportunities to thrive. Local economies will see benefits as well.