Latest news on the new minimum wage

The latest news on the new minimum wage in the United States is that the federal minimum wage has been stuck at $7.25 per hour since 2009. However, there have been ongoing efforts to increase the minimum wage at the federal, state, and local levels.

Here are some recent developments:

  1. Federal Minimum Wage Increase: In January 2021, President Joe Biden signed an executive order increasing the minimum wage for federal contractors to $15 per hour. However, this does not apply to all workers, only those employed by federal contractors.
  2. State and Local Minimum Wage Increases: Many states and cities have increased their minimum wages above the federal level. For example:
    • California: $14 per hour (effective January 2022)
    • New York: $14.20 per hour (effective December 2021)
    • Massachusetts: $15 per hour (effective January 2022)
    • Seattle, Washington: $16.39 per hour (effective January 2022)
    • San Francisco, California: $16.32 per hour (effective January 2022)
  3. Legislative Efforts: There have been ongoing efforts in Congress to increase the federal minimum wage. In March 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. However, the bill has not yet been passed by the Senate.
  4. Court Rulings: In January 2022, a federal appeals court ruled that the Trump administration's 2020 rule to allow states to opt out of the federal minimum wage for certain workers was unlawful. This ruling could potentially pave the way for a federal minimum wage increase.
  5. Business and Labor Support: Many businesses, including major companies like Amazon, Google, and Facebook, have publicly supported increasing the minimum wage. Labor unions and advocacy groups, such as the Service Employees International Union (SEIU) and the National Employment Law Project (NELP), have also been pushing for a higher minimum wage.

Overall, while there has been progress at the state and local levels, the federal minimum wage remains stuck at $7.25 per hour. Ongoing efforts in Congress and the courts may eventually lead to a federal minimum wage increase.