The Current Debate on the Issue of Minimum Wage

The Current Debate on the Issue of Minimum Wage

Since July 24, 2009, the federal minimum wage in the United States has been $7.25 per hour. However, there are U.S. territories that are exempt from this requirement as well as some specific forms of labor.  Employees who receive part of their income in tips, the minimum wage is $2.13 per hour so long as the hourly wage plus tip income equals at least the minimum wage. Further, persons under the age of 20 may be paid $4.25 an hour for the first 90 calendar days of employment; this is known as a youth, teen or training wage.

The Fair Minimum Wage Act of 2007 included three steps, the last of which was the July 24, 2009 minimum wage increase signed into law on May 25, 2007.  This increase was part of the U.S. Troop Readiness, Veterans Care, Katrina Recovery and Iraq Accountability Appropriations Act of 2007; the bill also contained almost $5 billion in tax cuts for small businesses.

In the past, the U.S. Supreme Court spoke on the issue of a federal minimum wage and held it as constitutional, stating that it does not exceed the scope of the Commerce Clause in the U.S. v Darby Lumber Co.

Many are currently proposing a further increase to the minimum wage. We have been listening to the issue with great interest.  As blue collar and labor jobs have decreased in the U.S., more and more families are drawn to service industry jobs.  What was once the type of job a high school or college student held in order to augment tuition money or acquire pending money, is now a job the head of household is pressed to perform.

I certainly understand the issue from both sides, the small business owner frets at the possibility of paying employees more and on the other side is the employee, he needs to make more in order to pay rent, put food on the table and provide his or her children with an education and is finding that it cannot be done on $7.25 per hour. Those two positions I understand, however, I do not understand the position of the large corporations or the major retailers. They are making millions of dollars in revenue each every day but are fighting the idea of paying their employees a couple of dollars more per hour.

When one listens to labor statistics, one can see that the economy, albeit slowly, is recovering and the nation is doing better.  More and more jobs are being created.  An economic recovery is possible in the short term.  But the economic reality to the head of a household, or to a single mother, is that they are working two or three jobs in order to barely pay rent and put food on the table.

Anyone who has been to a grocery store or a clothing store lately knows that necessities are expensive and that a person can work all day just to pay the grocery bill.

It is time for all of us to pull in the same direction. It is time for all of us to accept responsibility for one another.  In fact, that is what Americans have always done, care for one another and protect the weakest among us.

Let us hope then that large corporations as well as small business owners, feel the plight of the American worker and raise the minimum wage to a level that can offer relief to families.  Congress needs to work together in a non-partisan fashion and bring this important American Worker Issue to the front.

I am Martin E. Regan, Jr., and these are my personal thoughts.

Check out this website for further information:

http://www.dol.gov/whd/regs/compliance/ca_main.htm