Reevaluating the Benefits of Minimum Wage

The minimum wage was first enacted into law as part of the Fair labor Standards Act of 1938. The original minimum wage applied to workers engaged in interstate commerce and the production of goods for interstate commerce. Prior to the Federal Labor Standards Act when states were adopting their own, minimum wages only applied to women in the form of “protective labor legislation.” This legislation initially served to justify the maximum hours a woman could work, because there were biological differences between men and women. During this period it was assumed men did not need this type of protection but a woman, because of their weaker position and their natural susceptibility to be exploited, needed a greater level of protection. However after the Constitution was amended in 1920 to give women the right to vote, the United States Supreme Cou

Since the average family income for employees who benefit from minimum wage either live with their parents or relatives, have a working spouse, or are single and don’t have children one has to wonder what are the benefits? These types of individuals could not survive on minimum wage alone.

Increases in minimum wage have reduced the employment at the lowest end of the pay scale. Studies suggest that for every 10 percent increase in the minimum wage, a minimum of 100,000 jobs are lost (Cox). The 1990-1991 increase in the minimum wage reduce employment from 3 percent to 11 percent for teen-agers and poorly educated adults (Deere, 1998). While it appears the raising the minimum wage would increase the living standard, it would do so at the cost of available jobs, further hampering low-income families from raising above poverty levels.

The Wage and Hour Division insures that the public is aware of the minimum wage requirements through education. Employers must display an official poster in a common area, outlining the provisions of the Act. In addition, there are several national and state web sites that provide up-to-date information regarding all aspects of the minimum wage.

The Wage and Hour Division of the U. S Department of Labor is responsible for enforcing the minimum wage. The Wage and Hour division strives to ensure that workers are paid the minimum wage through a variety of checks and balances. The Wage and Hour Division has offices throughout the United States. The New Mexico Department of Labor Wage and Hour Division researches claims made by employees regarding wage inaccuracies. In addition, they conduct periodic audits of companies to ensure that Minimum Wage Laws are being enforced (B. Aragon, personal communication, January 16, 2002).

The Fair Labor Standards Act sets minimum wage, overtime pay, record keeping and child labor standards for employment. Unless exempt, covered employees must be paid at least the minimum wage and not less than one and one half times their regular rates of pay for overtime hours worked.

Every employer must keep certain records for each non-exempt worker. This documentation must include at a minimum identifying information about the employee and data about their hours worked and wages earned. These records must be retained for at least three ye

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