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

State of Working Ohio 2019: Realities and Remedies

In many ways, Americans have been given a gift for the last decade – an economic expansion unprecedented in its length. And many of the indicators of the expansion are quite strong: Unemployment levels are very low, particularly for those with college degrees. The nation continues to add jobs each month, though Ohio cannot consistently say the same. And the economy is growing each quarter.

But by other measures, we are far behind previous economic peaks. At this point in the business cycle, labor market participation (the share of those either working or seeking work) should be higher than ever – it is instead lower than in all but one of the last 40 years. After so many years of growth, median wages should be at an all-time high – they are instead lower than they were in 1979, when workers were much less educated and our economy was much less productive. And at this point in the cycle, our elected officials should have used the boom years to be ready for the inevitable bust, by investing in essentials that benefit us all long term. Instead, nationally and in Ohio, policymakers have neglected critical needs, leaving us less equipped to face any looming downturn.

Media

Beyond Kentucky’s low unemployment rate: How workers are really faring this Labor Day?

  • August 30, 2019
  • Anna Baumann

Op-Ed: “The longest economic recovery on record and a state unemployment rate of 4.3% sounds like a strong foundation for Kentuckians’ prosperity. But a close look at the numbers this Labor Day shows an economy in which many Kentucky communities still lack jobs, especially quality jobs families need to thrive.”

The State of Low-Wage Employment in Colorado

While Colorado’s economy has grown at a brisk pace since the Great Recession and hundreds of thousands of new jobs have been created, a significant amount of jobs in the state barely pay enough to let those who work them make ends meet. Since low-wage jobs make up more than 1/4 of all jobs statewide, it’s important to understand who the workers that fill them are and how those jobs affect the broader economy. This report, which updates previous CFI research from 2015 and 2017, shines a light on these questions and offers some insight into how Colorado compares with other states and the rest of the country as a whole.

With the Labor Day holiday right around the corner, and as Colorado’s statewide minimum wage is set to rise once again in January of 2020 – along with local governments gaining the power to increase their own minimum wage levels above the statewide minimum – policymakers and the public should use these findings as a guide to better understand how the minimum wage works in Colorado.

Record-Breaking Failure to Raise the Minimum Wage Is Holding Back Kentucky

This week marks the longest period in history the federal government has failed to increase the minimum wage, which has been stuck at $7.25 an hour since 2009. Because Kentucky has not increased its own minimum beyond that same level — unlike 29 other states — wages at the bottom remain stagnant and far too low for Kentuckians to make ends meet.