what is minimum wage in the united states
Minimum wage in the United States The minimum wage in the United States is set by US labor law and a network of state, and local laws. Employers generally must pay workers the highest minimum wage prescribed by federal, state, and local law. As of July 2016, the federal government mandates a nationwide minimum wage of $7.25 per hour. As of October 2016, there are 29 states with a minimum wage higher than the federal minimum. From 2014 to 2015, nine states increased their minimum wage levels through automatic adjustments, while increases in 11 other states occurred through referendum or legislative action. In real terms, the federal minimum wage peaked near $10.00 per hour in 1968, using 2014 inflation-adjusted dollars.[1]
Minimum wage in the United States In 1933, the Roosevelt administration made the first attempt at establishing a national minimum wage, when a $0.25 per hour standard was set as part of the National Industrial Recovery Act. However, in the 1935 court case Schechter Poultry Corp. v. United States (295 U.S. 495), the US Supreme Court declared the act unconstitutional, and the minimum wage was abolished. In 1938, the minimum wage was re-established pursuant to the Fair Labor Standards Act, once again at $0.25 per hour ($4.78 in 2017 dollars[13]). In 1941, the Supreme Court upheld the Fair Labor Standards Act in United States v. Darby Lumber Co., holding that Congress had the power under the Commerce Clause to regulate employment conditions.[14]