In a country with a huge income gap, it's no wonder that Americans often don't have enough money to cover the basic needs. The number of Americans making $15 per hour or less is on the decline, while Black and Latina households are experiencing increasing levels of poverty. In 2020, the rates of food insecurity for Latinx and Black households will be almost triple those of white households, which means that raising the minimum wage would make a big difference.
Federal Minimum Wage
Federal Minimum Wage law requires employers to pay their employees a minimum wage. This amount is set by the United States Department of Labor and is adjusted every year for inflation. It also covers compensation for tips. Employers must post a poster explaining the minimum wage and the rights of workers under the Federal labor law. Below is a guide to federal and state minimum wage laws. The map can help you determine which state's minimum wage laws apply to your workplace.
The federal minimum wage has been increased over the past several years. The rate increased from $5.15 per hour in 2007 to $7.25 in 2009. It will increase by a dollar per year until it reaches $15 by 2025. Employers are expected to pay their workers at least this amount by the end of the year.
States have also increased their minimum wages. Eight states increased their minimum wage automatically, while the other 10 increased their wages due to ballot initiatives and approved legislation. As a result, 21 states have raised their wages since 2021. These states are helping millions of low-wage workers. However, these increases have not been uniform. For example, most southern states have not raised their minimum wages above the federal rate. These disparities must be corrected.
The FLSA gives the Secretary of Labor the authority to enforce minimum wage laws. The Wage and Hour Division of the Labor Department has several methods to enforce the law. The agency has the power to compel witnesses to testify in hearings, obtain records of violations, and file lawsuits to recover unpaid benefits for employees.
Student Minimum Wage
The minimum wage for students differs in each state. Several factors can influence how much a student can earn, including the location of the job. If the student is employed in a retail store or a service store, the minimum wage can be lower than $15 an hour. However, if the student is an agricultural worker or a full-time student in a college or university, their employer must pay at least 85% of the minimum wage.
While it might be tempting to work while attending college, it can actually hurt students more than it helps them. For one thing, it doesn't prepare them for better jobs after college and takes valuable time away from studying. Moreover, a recent survey found that sixty percent of current college students would prefer to work at $15 per hour or more. A separate survey found that a quarter of students admitted to having financial difficulties. Most of the money students earn goes toward essentials, while only 22% goes towards purchases. The rest is spent on investments and saving.
Depending on the state, the minimum wage for students can range anywhere from $8 to $15 per hour. It is important to know that students are allowed to work part-time jobs while they are in school, but these are not full-time jobs. They can only work 20 hours a week on campus.
American Samoa Minimum Wage
The American Samoa Minimum Wage is currently set at $5.50 an hour, which is lower than the federal minimum wage. The government has committed to raising the minimum wage every three years until it reaches the federal level, which is currently $7.25. However, this raise would be gradual. The next scheduled increase is expected in 2021. For now, the government is focusing on making the basic cost of living affordable for all residents.
According to the U.S. Department of Labor, the American Samoa economy was $603.0 million in 2010 and supported 17798 jobs. The implied employment multiplier was 1.68, which has not increased over the years. The minimum wage in the United States is $7.25, which is higher than the minimum wage in American Samoa. The governor of American Samoa has personally lobbying Washington DC to change the minimum wage in the territory. Until then, employers must comply with the Fair Labor Standards Act, which includes a mandatory poster at work sites.
In 2007 Congress passed legislation that established a schedule of periodic increases to bring the American Samoa minimum wage to the federal minimum wage. The minimum wage is scheduled to increase by $0.40 per hour every three years. The most recent increase occurred on September 30, 2018, and the next increase will be scheduled for September 30, 2021. This means that the American Samoa minimum wage will not reach the federal minimum wage until 2036, if at all.