4/29/14: At the federal level, the minimum wage was last increased on July 24, 2009, when it rose from $6.55 to $7.25 per hour, the last step of a three-step increase approved by Congress in 2007. However, before 2007, the minimum wage was at $5.15 per hour for ten years. (Learn more about the history of the minimum wage.) For workers who receive tips, the federal minimum wage is $2.13.
Twenty-two states have established minumum wages higher than the federal $7.25 per hour. California's minimum wage will be $9.00 per hour beginning July 1, 2014, and will increase to $10.00 per hour on Jan. 1, 2016, when it will become the highest in the country.
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Senate Begins Considering an Increase in the Minimum Wage
4/29: This week, Senate may vote on a bill to increase the minimum wage to $10.10 over three years:
- S 2223
Would increase the Federal minimum wage in three 95-cent increments: about six months after enactment ($8.20), 1 year later ($9.15), 1 year later ($10.10). After that, the wage will be indexed to inflation thereafter, to keep up with rising cost of living. The Federal minimum wage for tipped workers, currently $2.13, will increase 95-cents per year until it reaches 70 percent of the regular minimum wage, or $7.10. Then, their wage would be pegged to 70 percent of the regular minimum wage, according to bill sponsors.
The Minimum Wage Increase Supported by the President
In his 2014 State of the Union address, President Obama called on Congress to pass the Fair Minimum Wage Act and raise the minimum wage to $10.10 per hour. He also issued an Executive Order to increase the minimum wage for federal contract workers.
- HR 1010
Fair Minimum Wage Act (House Version)
Would increase the Federal minimum wage in three stages: $8.20 an hour three months after the bill is enacted, $9.15 an hour a year after enactment and to $10.10 an hour two years after enactment.
- S 460
Fair Minimum Wage Act (Senate Version)
Would increase the Federal minimum wage in three stages: $8.20 an hour three months after the bill is enacted, $9.15 an hour a year after enactment and to $10.10 an hour two years after enactment.
Other Minimum Wage Proposals in Congress
There are also many other proposals in Congress, which would increase the minimum wage using different formulas or for particular workers.
- HR 3746
To increase in the Federal minimum wage to $8.50 an hour three months after the bill is enacted, $10.00 am hour a year after enactment and to $11.00 two years after enactment.
- S 1737
To provide for an increase in the Federal minimum wage in three stages: $8.20 an hour six months after the bill is enacted, $9.15 an hour a year after enactment and to $10.10 an hour two years after enactment. Would also incrase the wage of tipped workers to $3.00 six months after the bill is enacted, and then up to 70% of the minumum wage for other workers.
- HR 1346
Would index minimum wage to inflation. Would also close the gap between tipped employees and other workers, according to the bill sponsor.
- HR 650
Would raise the minimum wage for tipped workers from $2.13 per hour to $3.75 per hour three months after enactment; to $5.00 per hour one year after enactment; and 70% of minimum wage, but no less than $5.50 per hour, two years after enactment, according to the bill sponsor.
- HR 229
Original Living American Wage (LAW) Act
Would adjust the federal minimum wage every four years to at least 15% higher than the federal poverty threshold for a family of two. Under current poverty guidelines, it would increase the minumum wage from $7.25 to $8.36, according to the bill sponsor.
- HR 831
Fair Wages for Workers with Disabilities Act
Would remove a section of a 1938 labor law that allows employers to apply for federal waivers to pay disabled workers less than minimum wage, according to the bill sponsor. It would be enacted in stages: discontinue the issuance of new special wage certificates; revoking Waivers held by private, for-profit entities one year after enactment; those held by public entities two years after enactment; and those held by private nonprofit entities three years after enactment.
Please keep in mind that highlighting a bill doesn't imply a POPVOX endorsement in any way. Rather, we're simply trying to offer one more way to stay informed of an overwhelmingly complex legislative system.
