Breaking news on national minimum wage

Here are some recent updates on the national minimum wage in the United States:

Breaking News:

• On January 28, 2021, President Joe Biden signed an executive order increasing the minimum wage for federal contractors to $15 per hour, effective March 1, 2022.
• On March 11, 2021, the House of Representatives passed the Raise the Wage Act, which would gradually increase the federal minimum wage to $15 per hour by 2025. The bill is now pending in the Senate.

Recent Developments:

• In January 2021, the federal minimum wage remained at $7.25 per hour, which has been the same since 2009.
• In 2020, 21 states and the District of Columbia increased their minimum wages, with some states raising their minimum wages to $15 per hour or higher.
• A study by the Economic Policy Institute found that if the federal minimum wage had kept pace with productivity growth since 1968, it would be over $24 per hour today.

Key Provisions of the Raise the Wage Act:

• Gradually increase the federal minimum wage to $15 per hour by 2025
• Index the minimum wage to inflation to prevent erosion of purchasing power
• Increase the minimum wage for tipped workers, youth workers, and workers with disabilities
• Prohibit employers from retaliating against workers who discuss wages or seek higher wages

Impact on Workers:

• A $15 per hour minimum wage could lift the wages of over 30 million workers, including many low-wage workers in industries such as retail, food service, and hospitality.
• A higher minimum wage could also reduce poverty and income inequality, as low-wage workers would have more disposable income to spend on goods and services.
• Some businesses, particularly small employers, may face increased labor costs, which could lead to higher prices for consumers or reduced hiring.

Opposition and Concerns:

• Some business groups, such as the National Restaurant Association, have opposed increasing the minimum wage, citing concerns about increased labor costs and potential job losses.
• Some economists have argued that a $15 per hour minimum wage could lead to higher unemployment, particularly among low-skilled workers, as businesses may be less likely to hire them at a higher wage.

I hope this information is helpful!