Minimum Wage Essay, Research Paper

Should We Abolish The Minimum Wage?

Should We Abolish the Minimum Wage is not a question that should be ignore. From the time President Roosevelt signed the Fair Labor Standards Act (FLSA) in 1938 the $.25 minimum wage has rose up to its current condition to $5.15 an hour. (Industrial and Labor Relations Review) With many types of conflict that imposed upon it the minimum wage has been a debate ever since it has been in effect. In recent month’s Congress and the Senate has attempted to pass the minimum wage from $5.15 to $6.15 per hour. (Your Rights Under The FLSA) With both the public support and the political support it seems like there might be a possibility of an increase. With an increase we can see more of a possible living wage then this poor minimum wage that we have now. (A Fair Economy)

In our current job atmosphere there is huge demand for highly skilled workers. The current condition can not be met due to the fact that there are not as many skilled workers as there is unskilled which is creating a crisis. This crisis in which we have two sides, one side who are employed workers and on the other side we have workers who can’t be employed because they don’t have any type of skills.(Review of Political Economics) The crisis we face can be resolved with the minimum wage in which promotes self-sufficiency by raising the wages of the working poor to a level that enables them to provide for their own without the assistance of others. (A Fair Economy)

The (FLSA) was created in 1938 when Theodore Roosevelt decided to sign the bill in which banned oppressive child labor and set the minimum wage standard to twenty-five cents an hour. The bill also created the maximum workweek to 44 hours. (Industrial and Labor Relations Review)

With Mr. Roosevelt signing the act American society changed for the better. Youth were no longer employed at early ages. Instead of working 40 plus hours a week children were in school getting education that they needed. Minimum wage also protected women. Since women didn’t bring home as much as men they were set with the wage so at least they can bring home a fair share. (A Fair Economy)

In Today’s society the current minimum wage is $5.15 per hour and the maximum hours per week is 40. Once over 40 hours there is over time which is time and a half. The bill in which increased the minimum wage from $4.25 to 5.15 was signed by President Clinton which was in full effect on September 1, 1997. (Industrial And Labor Relations Review) Certain conditions were created as well to set standards for wage and hour division. Conditions such as Tip Credit, Youth Subminimum Wage, Travel Time in Employer Vehicle, Enforcement, and Computer Exceptions. (Your Rights Under the FLSA)

Tip Credit

Tip Credit allows an employer’s cash wage obligation at $2.13 an hour. Before employer’s were able to credit a certain amount of the tips received by tipped employees (ex: Waiters and Waitresses) against the employer’s minimum wage obligation when certain conditions are met. Although if an employee’s tips combined with the employer’s cash wage of $2.13 an hour do not equal the minimum hourly wage, the employer must make up the difference. It also means that the waiter wasn’t doing his job right. (Your Rights Under The FLSA)

Youth Subminimum Wage

Subminimum wage of $ 4.25 an hour is established for employees under 20 years old for there first 90 days of employment with an employer. Employers are also prohibited from displacing employees in order to hire youth at the subminimum wage because of its unfairness to employees over 20. It also prohibits reducing employee’s hours, wages, or employment benefits. (Effects Of The Minimum Wage)

Travel Time in Employer Vehicles

Time between going to work even in an employer’s vehicle is not considered worked hours. For ex: (I punch in at my job and then leave to my work site. When I get to my work site I sign in. From the time I sign in to the time I sign out I get paid for. When I leave the work site and go back to the office I punch out.) Between that time where its to the site or back to the office I do not get paid. (Your Rights Under The FLSA)

Enforcement

The Department Of Labor investigates any wrongdoing from an employer. The Department Of Labor can collect wages your employer owes and can fine them if a minor works more hours then there suppose to. They can also get fined for every violation they commit. Law prohibits employers to discharge an employee after a complaint has been filed because it is discriminatory toward the employee. (Your Rights Under The FLSA)

Computer Exemptions

Computer Exemptions are created for computer professionals who get paid for at least $27.63 an hour. The exemption is in effect because the professional is paid six and a half times the minimum wage. (Your Rights Under The FLSA)

Without the minimum wage, and government intervention like the Department Of Labor and the (FLSA) we would have discrimination in the work place. The U.S. economy would not be as stable as it is. Children would be working at younger ages and would not be able to get the sufficient education that they should get because they have to help the family. Employers would make there employees work for massive hours, low wages, and no benefits. Employees would be taken advantage of by their employer and would have to follow by their Employer’s guidelines. Minimum wage is important to our society because it is a set standard that basically promotes fairness between employers and employees. Thanks to Mr. Roosevelt our economic standards in the new millenium are well off. This doesn’t mean that $5.15 an hour is a living wage. But with time and patients we will see that the standards are set higher for the future generations.

Schapiro, Miles. “History Of The Minimum Wage”. Industrial And Labor Relations Review. October,1998. http://www.minimumwage.org/his/shap.htm (21 May.2001).

Dol U.S. “Fair Labor Standards Act Minimum Wage Poster”. Your Rights Under The FLSA. October 1996. http://www.dol.gov/dol/esa/public/regs/compliance/posters/flsa.htm (21 May 2001)

“Subminimum Wages: Data On State Minimum Wage Laws”. Effect Of The Minimum Wage. May. 1998 http://www.sta.submin/sta/trans/indust.htm (5 April 2001)

Pollock, John. “The Living Wage”. A Fair Economy. Jan.1996 http://minimumwage.org/liv/Polk.htm (21 May 2001)

Levin, Michelle. “The Poor: Welfare and Poverty” Review of Political Economics. March. 1985 http://minimumwage.org/sear/welfare+poverty/econhtm. (21 May 2001)