Minimum wage is the topic I chose because there has been a controversy regarding raising minimum wage and the impact of minimum wage to the society. Whether it would aid workers or not. There have been arguments of laypersons of increasing minimum wage to a very high level and there are arguments against it.
History behind minimum wage
The Ordinance of Labourers (1349) is the forerunner to the minimum wage. The Ordinance was a ruling by King Edward III who established a maximum wage for laborers in England (Mihm, 2013). King Edward III was reliant on serfs to work his lands. In fall season 1348, Black Plague annihilated the population in England (Thorpe, 2014). The severe scarcity of labor caused wages to climb and caused King Edward III to set a wage ceiling. The Statute of Labourers (1351), which is one of the amendments to the ordinance increased the penalties for paying a wage above the set rates (Mihm, 2013).
The wage ceiling laws were later used to set a living wage. An amendment to the Statute of Labourers in 1389 set wages to the price of food. As times passed, the Justice of the Peace, who had the authority in establishing the maximum wage, also began to establish official minimum wages. King James I later formalized with the passage of the Act Fixing a Minimum Wage in 1604 for workers in the textile industry (Mihm, 2013).
In the 1890s, modern legislative tries to adjust minimum wages in New Zealand and Australia (Starr, 1993).
The movement for a minimum wage
My topic of interest is the effects of raising minimum wage in the U.S. Minimum wage is defined as the lowest wage permitted by law or by special agreement. In 1938, President Roosevelt signed a bill called the Fair Labor Standards Act of 1938, which set the minimum wage at $0.25. Although, overtime inflation devalued the amount of the dollar so it was raised there on. After raising the minimum wage the cost of living would keep going up every year. Also, currently advocates are arguing that the living wage should be 125% above the poverty line so that full time workers can afford a living.
The Harvesters judgement act was established in 1907 and was made so male workers would have an appropriate wage that could support their wife and three children. It was created by Justice Henry Bourne Higgens who was the president of the commonwealth conciliation and arbitration court at the time. Before the act workers would work very long hours with very little pay. Working conditions were hard and dangerous and due to the low wage protective clothing and hygiene was an issue. In the 1890's there were industrial disputes due to conditions and wage which as a result meant that the new federal government at the time of federation had to resolve this without turning to violence. In conclusion they found wage the biggest issue after listening to worker’s testimony’s about their issues. It was only fair that a minimum wage was to be made which consisted of seven shillings a day or 42 a week which is roughly $4.20. This was the first time that employers were
The Fair Labor Standards Act was first introduced and passed on June 25, 1938 and became effective on October 24, 1938 within that bill minimum wage was first introduced (Grossman). The bill itself was an issue because the supreme court kept turning down the bill but after countless attempts, the bill was passed a year later. President Franklin D. Roosevelt introduced that bill in hopes for fair pay as he states “all our able-bodied working men and women a fair day's pay for a fair day's work” (Roosevelt). President Roosevelt basically wanted to end the injustice and inequality many workers faced when receiving payment. Minimum wage has been and is currently an issue because of the augmentation on the cost of living and low income many workers
The United States has a history of changes to the minimum wage law. “Early in the administration of the FLSA (Fair labor Standards Act); it became apparent that application of the statutory minimum wage was likely to produce undesirable effects upon the economies of Puerto Rico and the Virgin islands .In 1949, the minimum wage was raised from 40 cents and hours to 75 cents an hour for all workers. A 1955 amendment increased the minimum wage to $1.00 an hour with no changes in coverage. The minimum wage increased to $2.00 an hour in 1974, and $2.10 in 1975, and $
The minimum wage was established in the United States by the Fair Labor Standards Act of 1938 at 25 cents per hour. These laws are broadly supported by the public. Congress enacted these rules to combat “labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and the general well-being of the workers” (Sharp, 2013 p. 71). The purpose and intent of
In 1938, the first national minimum wage laws in the United States were passed as part of the Fair Labor Standards Act, which served as “a floor below wages,” to reduce poverty and to ensure that economic growth is shared across the workforce. Today, many people who work for companies that pay at or near the minimum wage and remain near or below the poverty level rely on government health and food security and income programs to supplement their living expenses. Since 1938, there have been many additional policies to the Fair Labor Standards Act that have changed many things, such as increasing the national minimum wage numerous times to the currently salary level, which was set in 1997. The Fair Minimum Wage Act of 2007 was a policy to change the federal minimum wage from $5.15 to $7.25 in three additions, which began in July of 2009. (http://www.dol.gov/whd/regs/compliance/posters/minwagebwp.pdf)
The minimum wage in the United States has been an ongoing controversy for many years now. The first minimum wage was established in 1938 (Reich, 2015, P. 3). That minimum wage started out at .25 cents an hour; compared to today’s higher wage of a government standard of $7.25 an hour. Many people believe that the minimum wage should be more so that those who live below the poverty level in the United States will decrease, however in many other people’s opinions the minimum wage should be the same. The minimum wage should stay the same at a low $7.25.
Proponents of raising the minimum wage claim that if the minimum wage was raised, then many economic and social problems would be alleviated. This contention is at odds both with economic principles and years of creditable research. The effect of raising or even having a minimum wage has been studied extensively and the majority of studies have proven that raising a minimum wage does not have the desired effect. Both micro and macroeconomic forces affect the results of raising the minimum wage. The secondary effects of raising the minimum wage are bad both for
In 1938, the first national minimum wage laws in the United States were passed as part of the Fair Labor Standards Act, which served as “a floor below wages,” to reduce poverty and to ensure that economic growth is shared across the workforce. Today, many people who work for companies that pay at or near the minimum wage and remain near or below the poverty level rely on government health and food security and income programs to supplement their living expenses. Since 1938, there have been many additional policies to the Fair Labor Standards Act that have changed many things, such as increasing the national minimum wage numerous times to the currently salary level, which was set in 1997. The Fair Minimum Wage Act of 2007, from the United States Department of Labor Wage and Hour Division, was a policy to change the federal minimum wage from $5.15 to $7.25 in three additions, which began in July of 2009. (U.S., 2009).
Minimum wage introduced by the congress as the subdivision of the Fair Labor Standards Act (FLSA) in 1938. At that time, congress set the minimum wage at 25 cents an hour. According to Tricia Hussung, Business Analyst, in 1968, adjusted for inflation, the federal minimum wage
In this globalization era, as various countries see growth in their economy, there has also been significant differences in the wages set to employees in different countries. The lowest wages set by the law that are fixed to a particular amount which is also defined to be the price floor below which workers shall not sell their labor, has its own effects. The minimum wage law came into force as a matter of social justice amongst the low-wage workers, also to reduce exploitation and see that workers can afford the standard basic living expenses and necessities, not to increase the unemployment rate, indeed to increase the employment rate.
Employment law dates back to the 14th century, with the first labour legislation, the Ordinance of labourers passed in 1349 and consisted of regulations and price controls issued by King Edward 111. The purpose of the legislation was to maintain wages at rates to be fixed from time to time by the Justice of the peace. The ordinance was written in
National Minimum Wage, introduced by the Labour Party as part of the Maastrict Treaty 1992. The treaty had requirements for there to be a minimum standard of living for all citizens. The National Minimum Wage met this requirement. Is was highly criticised before being introduced , but did not have the negative impact on business as was suspected. This was partly due to the level being set fairly low upon introduction. There are set rates within 3 bandings according to age.
The first minimum wage law covered women and children dated back to 1912. During the U.S.
The scope of this paper is to illustrate how compliance with the minimum wage can be achieved. In the present framework, the term “compliance” is used as in Young’s definition: “Compliance can be said to occur when the actual behaviour of a given subject conforms to prescribed behaviour, and non-compliance or violation occurs when actual behaviour departs significantly from prescribed behaviour” (Young 1979: 202). Compliance is achieved through implementation, which describes the process of putting a rule into practice. This includes three main steps: 1.rule creation, 2. the setting up of institutions, and 3.