Revised Draft - Kirk |1 Sean Kirk Professor Corner English...

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K i r k | 1 Sean Kirk Professor Corner English 110.01 March 5, 2008 Minimum Wage Poverty is a growing problem that is affecting the lives of millions of people each day. Since 1938, during the great depression, there has been a minimum wage set in place by the federal government. The whole idea of having a minimum wage is so that workers can have more purchasing power. With this power, more money will be invested in companies, which will produce more job opportunities, and will stimulate the economy. Acts have been put into place by both the state and the federal governments, which are helping combat this issue by implementing a minimum wage. One such act that is currently being enforced by the Federal Government is the Fair Labor Standards Act (FLSA). By creating this act, the government hoped to “prescribe standards for the basic minimum wage and overtime pay” (U.S. Department of Labor). Another federal act that is helping in the cause is the Davis-Bacon and Related Acts (DBRA). This act “requires employers of contracting companies to provide dominant wage rates and employee benefits” (U.S. Department of Labor). The Service Contract Act (SCA) “requires contractors and subcontractors that are performing services on federal or District of Columbia contracts in excess of $2,500 to pay service employees no less than the monetary wage rates and to provide employee benefits found prevailing in the locality, or the rates contained in a predecessor contractor's collective bargaining agreement” (U.S. Department of Labor). The Contract Work Hours and Safety Standards Act (CWHSSA) is an act “which sets overtime standards for most federal service
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K i r k | 2 contracts, federally funded construction contracts, and federal supply contracts over $100,000” (U.S. Department of Labor). The Walsh-Healey Public Contracts Act (PCA) “requires payment of minimum wage rates and overtime pay on federal contracts to manufacture or provide goods to the federal government” (U.S. Department of Labor). The FLSA is one of the most influential acts that have been put into place by the Federal Government. The FLSA is a three step process that will eventually raise the minimum wage to a grand total of $7.25 per hour by the year 2009. How this process will work is that every year, there will be a gradual increase of 70 cents per hour in the federal minimum wage. Workers who were covered by the FLSA were entitled to a minimum wage that, effective July 24, 2007, was raised to $5.85 per hour. There is to be another raise in the minimum wage on July 24, 2008, that will set the limit at $6.55, and yet another raise in minimum wage effective July 24, 2009 that will set the new minimum wage limit to $7.25 per hour. That is a raise with a total of $2.10 over a three year period. This is going to help the economy immensely in many
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Revised Draft - Kirk |1 Sean Kirk Professor Corner English...

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