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

Frequently Asked Questions Related to the $15 Minimum Wage

In a well-functioning economy, people who work full time should be able to earn enough to support themselves and their families. That’s important for families and for the overall economy, which relies on consumer spending to keep local businesses thriving. Unfortunately, the pattern of economic growth between the end of the Second World War and the 1970s – where wages generally grew at the same pace as economic productivity – has changed in recent decades. Since the 1970s, the value of wages for most workers has been stagnant while the benefits of economic growth have gone disproportionately to the highest income households.1 In recent years, minimum wage increases have begun to restore modest wage growth for lower wage workers.2 A number of states have now adopted laws to create a $15 minimum wage to spread these gains more widely. This brief discusses commonly asked questions surrounding a $15 minimum wage in Massachusetts.

Publication

When Work is Not Enough: Toward Better Policy to Support Wisconsin’s Working Families

In Wisconsin, policy makers seem to increasingly assume that work, and work alone, can provide a decent standard of living. However, working families continue to face a slew of challenges – low wages, inadequate benefits, insufficient hours – generated by the very jobs that are supposed to be the answer. This report highlights the disconnect between state policies and the realities of Wisconsin families working in jobs at or near the poverty line.

A higher minimum wage would help Alabama families make ends meet and strengthen our state’s economy

Too many hard-working Alabamians aren’t paid enough to get ahead. Alabama ranks in the bottom third of states for average hourly wages. Around 77,000 Alabamians earn wages at or below the $7.25 per hour minimum established by the federal government in 2009, and another 394,000 earn less than $10 an hour. In the absence of a state minimum wage, Birmingham in 2015 set its own minimum wage of $10.10 per hour, for implementation by mid-2017. However, the Alabama Legislature overruled, or pre-empted, that measure in 2016 with a state law that prohibits local governments from mandating a minimum wage and other employment practices. (

Publication

Oregon Care Economy: The Case for Public Care Investment

Oregon’s current care economy is vast and largely invisible. Currently underinvested, it creates and exacerbates poverty and inequality. We are missing the opportunity to invest adequately in the care economy in order to build a stronger, more inclusive economy and better life for us all. This report seeks to bring care work into view.