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]
Wage Seventy-five million workers earned hourly wages in the United States in 2012, making up 59% of employees.[9] In the United States, wages for most workers are set by market forces, or else by collective bargaining, where a labor union negotiates on the workers' behalf. The Fair Labor Standards Act establishes a minimum wage at the federal level that all states must abide by, among other provisions. Fourteen states and a number of cities have set their own minimum wage rates that are higher than the federal level. For certain federal or state government contacts, employers must pay the so-called prevailing wage as determined according to the Davis-Bacon Act or its state equivalent. Activists have undertaken to promote the idea of a living wage rate which account for living expenses and other basic necessities, setting the living wage rate much higher than current minimum wage laws require. The minimum wage rate is there to protect the well being of the working class.[10]