Labor Unions and
Fair Pay
Labor unions tried to get a minimum wage passed in
1923 to ensure workers received a fair rate of pay for their labor. The
majority of the work force labored long hours in sweatshops and factories,
under horrible conditions, and for only pennies a week, according to the
Minimum-Wage.org website. Unions were also the first entities that sought to
improve working conditions. The U.S. Supreme Court struck down these attempts.
FLSA and Minimum Wage Standards
The Fair Labor Standards Act passed by the
Roosevelt administration in 1938 had a profound effect on the wages paid to
American workers. The FLSA set a 25-cent-per-hour minimum wage and a 44-hour
workweek ceiling for most employees, according to Time magazine online. The act
states that wages must ensure a minimum standard of living necessary forhealth, efficiency and general well-being,
without substantially curtailing employment. It also bans child labor.
Minimum Wage Exemptions
Certain minimum wage exemptions were established to
benefit businesses where employees receive tips in addition to their wages,
such as restaurants, bars and private clubs, because it is expected that the
tips will make up the difference in pay. Some jobs, like baby-sitting, which
are often paid by individual consumers utilizing the services of teens, may
also be exempt. (See the minimum wage FAQs page on the Minimum-Wage.org
website).
Cost of Living and Minimum Wages
The purchasing power of workers making minimum wage
went from $10.04 worth of goods in 1968 to $7.25 worth in 2010, according to
statistics on the Let Justice Roll
website. The federal poverty level, the decrease in purchasing power and
the higher cost of living in some areas resulted in 19 states and Washington,
D.C., having already set a minimum wage of $7.25 an hour or more before 2010.
This is referred to as a living wage.
Poverty and the Minimum Wage
Laura Fitzpatrick wrote in the July 24, 2009, issue
of Time magazine online, that the minimum wage translates into a yearly
increase of $4,400 for a full-time worker, just nudging a family of four above
the poverty line. Economists have noted that the minimum wage has been passed
on to consumers and rarely affects business profits. The high poverty rate in
1923 also influenced labor union attempts to establish a minimum wage.
References
"Time"
magazine; A Brief History of the Minimum Wage; Laura Fitzpatrick; July 24, 2009
Let Justice Roll Living Wage Campaign
Minimum-Wage.org: History of the
United States' Minimum Wage
Resources
Connecticut
Department of Labor: History of Minimum Wage Rates
U.S. Department of Labor: Fair Labor
Standards Act
Read more: Why Were Minimum Wage Laws Established? | eHow.com http://www.ehow.com/about_7529633_were-minimum-wage-laws-established.html#ixzz19WdPwcCM
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