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.

Publications

The Minimum Wage in Massachusetts: Challenges & Opportunities

The Massachusetts economy is stronger when all working families can make ends meet. Unfortunately, since the 1970s, wages have generally stopped growing with the economy and many working families find it difficult to pay for basic needs. As shown in the graph below, hourly wages grew in tandem with productivity during the late 1940’s to the early 1970’s. During this period economic gains were broadly shared by the very workers who helped create this growth. Yet, after 1973, while productivity continued to grow, wages for most workers did not.

Long Since Due: An Increase in New Hampshire’s Minimum Wage

A measure now before the New Hampshire legislature seeks to strengthen the minimum wage and to begin to build an economy that works for everyone in the Granite State. More specifically, HB 1403 would raise New Hampshire’s minimum wage in two steps: from $7.25 to $8.25 per hour on January 1, 2015 and to $9.00 per hour on January 1, 2016. The measure would also require automatic annual cost of living adjustments, based on the Consumer Price Index, beginning in 2017.

This paper examines the proposed increase, beginning with a brief review of New Hampshire’s current minimum wage and then exploring how that wage compares to historical minimum wage levels, key standards of need, and other states’ wage floors. It next provides estimates of the number of New Hampshire workers who would be affected by the proposal and discusses some of its broader economic consequences. It concludes that raising New Hampshire’s minimum wage could help working families, local businesses, and the New Hampshire economy as a whole.

The Big Rig Overhaul: Restoring Middle-Class Jobs at America’s Ports Though Labor Law Enforcement

Our research found the dire working conditions of port truck drivers to have flowed from the practice of treating employees as if they were ‘independent contractors,’ an illegal practice called misclassification. At the time of our first report, there were practically no official government investigations to verify our findings despite a host of enforcement agencies being responsible for preventing misclassification.

That has now changed. Our findings match those coming from recent investigations of employment practices common in the industry by the United States Department of Labor, the Internal Revenue Service, the National Labor Relations Board, and various state agencies. More importantly, these investigations signal a new dynamic, one with practical ramifications for the organization of work in the industry as well as for broader discussions of inequality in this country.

Louisiana Needs a Higher Wage

Louisianans of all political stripes strongly favor establishing a state minimum wage of at least $8.50 an hour that would keep pace with the cost of living, according to polling data released as part of a new report from the Louisiana Budget Project.

The poll of 1,279 Louisiana adults by LSU’s Public Policy Research Lab found that 73 percent of the public supports raising the wage from the current minimum of $7.25 per hour. The support is consistent across party lines, with 62 percent of Republicans favoring the higher wage along with nearly 70 percent of political independents. Voters in every age, income and racial bracket support the higher wage.

“While some politicians make the minimum wage a partisan issue, the verdict from everyday Louisianans is clear and bipartisan: it’s time to give workers a raise,” LBP Director Jan Moller said.

The data is included in a new report by David Gray, “Louisiana Needs a Higher Wage,” that also found that an $8.50 minimum wage would provide an immediate raise for 184,000 workers, create an estimated 1,400 new jobs and pump more than $187 million into Louisiana’s economy. Raising the wage to $10.10 per hour would have even bigger benefits for workers and the overall economy.

“This report should put to rest some of the tired misconceptions about minimum wage workers, “ Moller said. “A modest raise in the minimum wage would have huge benefits for Louisiana workers and would actually help create jobs as workers have bigger paychecks to spend throughout the economy.”

Many people assume that minimum wage workers are mainly teens working part-time jobs. But the reality is that teens make up less than 10 percent of the minimum wage workforce. Nearly one-third of all low-wage workers are over 40, and almost two-thirds work full-time hours.