MinimumWages2011A

MinimumWages2011A - Econ145.MinimumWages2011A John Pencavel...

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1 Between 1912 and 1938, 28 states, the District of Columbia, and Puerto Rico passed minimum wage laws. Usually these were restricted to women & children or sometimes just women. Only one state (Oklahoma) embraced adult men. Often these state laws did not specify effective enforcement. The ultimate penalty in the Massachusetts law was the publication of the names of non-complying employers. On the impact of the FLSA on the labor markets of the low-wage economy of the South, see Gavin Wright, Old South, New South , Basic Books, 1986, esp. Ch. 7, pp. 198-238. 2 See Table 1 of Bureau of Labor Statistics, U.S. Department of Labor, “Characteristics of Minimum Wage Workers: 2008", 11 March 2009. http://www.bls.gov/cps/minwage2008.pdf Econ145.MinimumWages2011A John Pencavel STATUTORY MINIMUM WAGES At Federal level, minimum wage legislation incorporated as part of the Fair Labor Standards Act (FLSA) 1938. 1 Other components of the FLSA concern the premium rate of pay for overtime work, regulations on the market work of children, and record-keeping issues. Distinguish between exempt and non-exempt workers: exempt from the Federal minimum wage are many farm-workers, some seasonal workers, and white-collar employees in executive, administrative, professional, or outside sales positions and who are paid on a salary basis. For workers receiving tips as part of their compensation, the total compensation (i.e., the hourly wage plus tips) must satisfy the Federal minimum wage requirement, not just the hourly wage component. In 2008, of workers aged 16 years and over who are paid hourly wage rates (a total of 75,305 thousand) 2,226 thousand were paid at or below the Federal Minimum Wage. 2 Thus, 2.95 percent were paid at or less than the Federal minimum wage. Enforcement & Penalties ?
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2 Nominal and Real Federal Minimum Wage, 1938-2010 Nominal wages are deflated by the CPI-U for the year 2000 to generate the real wage series. Federal Minimum Wage was raised to $5.15 in September 1997 where it remained until July 2007 when it was increased to $5.85 per hour. It was raised again in July 2008 to $6.55 and again in July 2009 to $7.25.
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3 Minimum Wage Regulation in States By January 2011, 17 states (plus the District of Columbia) had minimum wage rates > Federal minimum wage 24 states had minimum wages = Federal minimum wage 4 states (Arkansas, Georgia, Minnesota, Wyoming) had minimum wages < Federal minimum wages 5 states (Tennessee, South Carolina, Alabama, Mississippi, Louisiana) had no statutory minimum wages Where Federal and state law have different minimum wage rates, the higher standard applies. California’s minimum wage: January 1998 $5.75 January 2001 $6.25 January 2007 $7.50 January 2009 $8.00 January 2011 $8.00 San Francisco passed an Ordinance that set minimum wages in February 2004 of $8.50 and this is indexed to prices. This is applicable to employees who work 2 or more hours a week. In January 2011, this was $9.92 .
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4 “Living Wages” In the 1990s, a number of cities & counties adopted “living wage” ordinances that require firms (i) that contract with the city or county and/or . .....
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MinimumWages2011A - Econ145.MinimumWages2011A John Pencavel...

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