Minimum wage policies through the lens of data-driven insights

Economists use complex methods and formulas, like the Anker methodology or the Asia Floor Wage Alliance calculations, to determine the wages that are required to achieve a decent quality of life. These methods also consider the impact of inflation on the cost of living. A living wage should be earned in a standard working week and not require excessive and exploitative work hours. Sophie Mariam, a labor policy analyst at CFI, argues that even though the wage now rises with inflation, it still doesn’t allow workers to truly support themselves in high cost areas. Premium pay not applicable to employees who request compensating time off in lieu of premium pay. Employers with ten or more full time employees at any one location or employers with annual gross sales over $100,000 irrespective of number of full time employees.

Overtime Pay

The amount set is a minimum wage, so it can be exceeded by a collective agreement or individual https://www.bookstime.com/articles/negative-retained-earnings agreement with the company. The revision of the SMI does not affect the structure or amount of professional salaries being paid to workers when they are superior to the established minimum wage. In the model just presented, the minimum wage always increases unemployment.

State minimum wages

• A living wage should be earned in a standard working week and not require excessive and exploitative work hours.
• An employer who is subject to the federal and state minimum wage requirements must pay the higher of the two.
• Nonexempt workers can’t be offered a job or agree to work for less than this amount.
• A global survey conducted by the International Labour Organization in 2017 confirmed that garment workers’ wages are also directly influenced by purchasing practices between brands and suppliers.

Official websites use .gov A .gov website belongs to an official government organization in the United States. Benefits such as educational minimum wage around the us assistance, life insurance, or travel accident insurance are generally a matter of agreement between an employer and an employee (or the employee’s representative).

Supply and demand model

• 3 The Michigan minimum wage is scheduled to increase to $12.48 per hour on February 21, 2025.
• The purchasing power of minimum wage workers peaked in 1968, according to the Seattle Times.
• The federal minimum wage is $7.25 per hour for workers covered by the FLSA.
• While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the labor law data we present.
• Minimum wage rate and overtime provisions applicable to retail and service, commercial support service, food and beverage, and health and medical industries.
• A meta study of minimum wage research since 1992 found that raising the wage can lead to lost jobs, in particular among younger workers and those with less education, as employers find ways to get their work done with fewer people on their payroll.

Seven states have no state minimum and two, Georgia and Wyoming, have a minimum wage that is less than the federal minimum. The first minimum wage law in the United States went into effect in 1912 when Massachusetts set a minimum hourly rate for women and children under age 18. The federal minimum wage in the United States is $7.25 per hour as of 2025 unless the worker falls into a category that’s specifically exempted from the Fair Labor Standards Act (FLSA). The U.S. Department of Labor enforces the Fair Labor Standards Act (FLSA), which sets basic minimum wage and overtime pay standards.

• Former President Joe Biden campaigned on a promise to raise the federal minimum wage for government workers to $15 an hour.
• The Fair Labor Standards Act (FLSA) established the minimum wage, which is $7.25 per hour as of January 2025.
• Seven states have no state minimum and two, Georgia and Wyoming, have a minimum wage that is less than the federal minimum.
• The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act.
• The political and social narratives around minimum wages vary from country to country.
• Equal Pay Act of 1963 (Public Law 88-38)Equal pay provisions prohibit sex-based wage differentials between men and women employed in the same establishment who perform jobs requiring equal effort, skill, and responsibility.
• The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA).

Surveys of economists

An employee earning a guaranteed monthly compensation of $4,000 or more is exempt from the State minimum wage and overtime law. Minimum wage rate and overtime provisions applicable to retail and service, commercial support service, food and beverage, and health and medical industries. Under a voluntary flexible work hour plan approved by the Alaska Department of Labor, a 10 hour fixed assets day, 40 hour workweek may be instituted with premium pay after 10 hours a day. 7 Ohio employers with annual gross receipts under $394,000 must pay no less than $7.25 per hour.

This is the largest increase since 2001 when it was increased by 16.8%. The national minimum wage was introduced in the Republic of Ireland in April 2000. Prior to this, minimum wages were set by industry-specific Joint Labour Committees. However, coverage for workers was low and the agreements were poorly enforced and moreover, those who were covered by agreements received low wages.