Tag Archives: Minimum Wage

States Will #RaiseTheWage for More Than 2 Million Workers

Today’s post comes from guest author Kit Case, from Causey Law Firm.

By  on November 10, 2016 – –

It has been almost four years since President Obama called on Congress to increase the federal minimum wage. While Congress has refused to take action, this hasn’t dissuaded states and localities from stepping up and giving American workers the raises they need and deserve. Election Day was no exception. Voters in Arizona, Colorado, Maine and Washington cast their ballots to ensure that hard work is rewarded with a fair wage.

The resounding win for minimum wage ballot initiatives in these states will collectively result in nearly 2.2 million workers getting a raise.*

  • In Arizona, the minimum wage will be raised to $12 by 2020, lifting the earnings of 779,000 workers. Flagstaff passed an even bigger raise − $15 by 2021.
  • In Colorado, the minimum wage will be raised to $12 by 2020, lifting the earnings of 477,000 workers.
  • In Maine, the minimum wage will be raised to $12 by 2020, lifting the earnings of 181,000 workers.
  • In Washington, the minimum wage will be raised to $13.50 by 2020, lifting the earnings of 730,000 workers.

The Election Day results are another reminder that for most Americans, raising the minimum wage isn’t a partisan issue but rather a commonsense decision. Twenty-nine states and the District of Columbia – home to 61 percent of all U.S. workers − have minimum wage rates above the federal rate of $7.25.

Voters and policymakers in these states understand what labor economists have spent decades researching and confirming: minimum wage increases have caused little to no significant job loss, but they have reduced employee turnover, strengthened families’ finances, and ultimately helped grow our economy. As our economy continues to recover from the greatest economic crisis in generations, we should all share in the prosperity we are building. And there is no easier way to do that than by raising the minimum wage.

By casting their ballots for a fair wage, the residents of Arizona, Colorado, Maine and Washington renewed President Obama’s call to take action. It’s time raise the minimum wage for all workers in America.

Dr. Heidi Shierholz is the department’s chief economist.

*Source: The Economic Policy Institute.

Note: In Arizona and Washington, the approved minimum wage ballot initiatives also require employers to provide paid sick leave to their employees. Expanding access to paid sick leavehas been another top priority of the Obama administration, and these ballot victories will help thousands more workers be able to address their health needs without putting their or their families’ economic security at risk.

FLSA – Minimum Wage & Overtime

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, and youth employment standards. The FLSA establishes a federal minimum wage of $7.25 per hour and requires overtime pay at a rate not less than 1.5 times the regular rate of pay after 40 hours of work in a workweek for covered nonexempt workers. Many states also have minimum wage laws and where a worker is subject to both federal and state minimum wage laws, the employee is entitled to the higher minimum wage.

Bona fide administrative, executive, professional, and outside sales employees are exempted from minimum wage and overtime pay under Section 13(a)(1) of the FLSA. However, a job title does not exempt an employee from those provisions. Instead employees must meet certain tests regarding their job duties and receive a salary of at least $455 per week ($23,600 per year). President Obama drew attention to the low salary standard in a 2014 Presidential Memorandum directing the Department of Labor to update the minimum wage and overtime standards. Effective December 1, 2016, the standard salary level will increase to $913 per week and will automatically update every three years to reflect economic changes.

Many employees are often unaware of minimum wage and overtime pay laws until it is too late. Generally, under the FLSA an employee cannot recover back pay more than two years after it is due to him. However, if the employer willfully violates the FLSA, an employee has three years to assert his claim. To file a complaint under the FLSA, contact the U.S. Department of Labor’s Wage and Hour Division.

Wal-Mart & McDonald’s: Passing the Buck to Taxpayers

Today’s post comes from guest author Charlie Domer, from The Domer Law Firm.

Came across this post today: “How McDonald’s and Wal-Mart Became Welfare Queens.”  News like this has become so commonplace that you almost accept it with a shrug.   Yeah, big box stores and fast food chains are paying their workers cruddy wages, forcing them to go on state health insurance and food stamp assistance.  Oh well.  Move along.  Nothing to see here.

But the outrage should exist.  These stories make my blood boil.  Many of these companies are making massive profits.  You’re telling me you can’t pay a living wage?  All of us, as taxpayers, are helping pad the the coffers of these companies.  By not providing sufficient wages or health care, the actual taxpayers serve as the necessary social safety net for these workers.  Is that really how we want our society and country structured?

Admittedly my experience is anectodal, but I see a number of these workers in my practice–from the greeters at Wal-Mart to those flipping burgers at McDonald’s.  Many are making a minimum hourly wage of $7.25.  No matter how hard they work (and, in my experience, some of these fast food and retail workers are the hardest workers out there, in light of their work condition), they cannot get ahead or make enough to avoid the necessity of seeking food stamp assistance or of searching for the local food pantry.  

Corporations simply should not be able to get rich on the public’s back.  As taxpayers, we continue to allow this grossly one-sided equation to continue.