Investigative Feature Outline: Minimum Wage and its effects on low income families
and the economy
Sources and Information:
● http://www.dol.gov/whd/minimumwage.htm
1. “The federal minimum wage provisions are contained in the Fair Labor
Standards Act (FLSA). The federal minimum wage is $7.25 per hour effective
July 24, 2009. Many states also have minimum wage laws. Some state laws
provide greater employee protections; employers must comply with both”.
2. “The FLSA does not provide wage payment collection procedures for an
employee’s usual or promised wages or commissions in excess of those required
by the FLSA. However, some states do have laws under which such claims
(sometimes including fringe benefits) may be filed.”
● http://www.minimumwage.com/
1. “The minimum wage is the minimum hourly wage an employer can pay an
employee for work. Currently, the federal minimum wage is $7.25 an hour
(part of the Fair Labor Standards Act) and some states and cities have raised
their minimum wage even higher than that. San Francisco, CA, has the highest
minimum wage in the country at $10.55 an hour.”
2. “Employees that earn the minimum wage tend to be young, and work in
businesses that keep a few cents of each sales dollar after expenses. When the
minimum wage goes up, these employers are forced to either pass costs on to
consumers in the form of higher prices, or cut costs elsewhere–leading to less
full-service and more customer self-service. As a result, fewer hours and jobs
are available for less-skilled and less-experienced employees”.
3. “Minimum wage increases do not help reduce poverty. Award winning research
looked at states that raised their minimum wage between 2003 and 2007 and
found no evidence to suggest these higher minimum wages reduced poverty
rates. While the few employees who earn a wage increase might benefit from a
wage hike, those that lose their job are noticeably worse off.”
● http://money.cnn.com/2014/01/15/news/economy/income-inequality-minimum-wa
ge/
1. “Raising the federal minimum wage could help bring many low-wage workers
above the poverty line. It also could help restore the value of the minimum
wage, which hasn't kept pace with inflation over the past 40 years.”
2. “At its peak in 1968, the minimum wage was equal to 54% of average hourly
earnings in the private sector. Today, it comes in at 36%, according to the
Congressional Research Service.”
3. “Obama, who backs the $10.10 proposal, has said raising the minimum wage
would be good for the economy and good for families.A higher minimum wage
could increase the pay not only for the 1.6 million workers who earn $7.25
today, but an estimated 17 million workers who make between $7.25 and
$10.10.”
Possible Experts to Interview:
●
Isabel Sawhill: co-director of the Center on Children and Families at the Brookings
Institution.
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202.238.3518 — Center Coordinator: Stephanie Cencula
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202.797.6105 — Brookings Office of Communications
Mark Dunlea: Executive Director of Hunger Action Network of NYS (Or one of his
peers)
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NYC Office: 64 Fulton Street, Room 801, New York, NY 10038 (212) 741-8192
Katelyn Johnson: executive director of Action Now, a community organization
backed by union money that spearheaded the petition drive
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410-257-7279