May 31, 2005
A 1.4% CRISIS?:
States say $5.15 an hour too little: Minimum wages top federal rate (Dennis Cauchon, 5/31/05, USA TODAY)
More states are raising their minimum wages, pushing hourly rates above $7 in some and shrinking the role of the federal minimum wage, which hasn't gone up in eight years.Eleven states have raised their rates since January 2004, and Wisconsin will become the 12th on Wednesday. Employers there must pay at least $5.70 an hour through June 2006, when the minimum wage rises again to $6.50 an hour.
In all, 17 states and the District of Columbia — covering 45% of the U.S. population — have set minimums above the federal rate of $5.15. That has helped cut the number of workers earning the minimum or less (for those earning tips) from 4.8 million in 1997 to 2 million last year, or 2.7% of hourly earners, the Bureau of Labor Statistics says.
About half of minimum-wage earners work at restaurants. Millions more have wages that are influenced by the minimum. Its buying power is at its lowest point since 1949.
So almost no one is actually paid the minimum wage and those that are get tips as well? Posted by Orrin Judd at May 31, 2005 7:31 AM
The GOP should push through a bill eliminating the federal minimum wage, pointing out that most states are above the federal minimum and that it should be set by the states. It probably wouldn't pass but it might reestablish GOP small govt creds and give Ted Kennedy some angst.
Posted by: AWW at May 31, 2005 7:50 AMI saw a sign at my local McDonalds that advertised starting pay at $8.75 plus health benefits and a stock plan.
Posted by: Buttercup at May 31, 2005 8:17 AMIt's $9 and they hire 15 year olds.
Posted by: oj at May 31, 2005 8:27 AMThe wage is $7.35hr in WA and at my cardroom only tipped employees get the minimum. Servers average $35k to $40k per year and Dealers average $60k+ per year. It's especially painfull here because minimum wage is tied to inflation and increases every year. We have had to cut benefits and freeze wages for all non-minimum wage employees so that we can still make a profit while giving annual raises to the highest paid employees (other than the CEO) in the company.
Posted by: Patrick H at May 31, 2005 2:21 PMHey how come the Krugman-loving unemployment obsessive from below didn't find this thread?
Posted by: Jim in Chicago at May 31, 2005 10:22 PM