Exploring how race, ethnicity, and class intersect to affect economic outcomes in the United States. Policy. An official website of the United States government. Raising the federal minimum wage to $15 per hour would increase wages for 17 million U.S. workers, according to the Congressional Budget Office. And as the lead agency for administering the Federal Wage System, the Department of Defense will implement this change to benefit all federal agencies., Fact Sheet: Number of federal employees who will receive raise to $15 per hour, by agency or department, *Notes about the data contained in this fact sheet, NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES: 35, ARCHITECTURAL AND TRANSPORTATION BARRIERS COMPLIANCE BOARD: 1, DEPARTMENT OF HEALTH AND HUMAN SERVICES: 251, ADVISORY COUNCIL ON HISTORIC PRESERVATION: 7, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 6, CORPORATION FOR NATIONAL AND COMMUNITY SERVICE: 3, NATIONAL ARCHIVES AND RECORDS ADMINISTRATION: 13, Fact Sheet: Approximate number of federal employees who will receive raise to $15 per hour, by state. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} Before sharing sensitive information, make sure youre on a federal government site. 47. Privacy Policy Contact Us. .table thead th {background-color:#f1f1f1;color:#222;} In February, the company said it would increase wages for some of its estimated 1.6 million employees to . Raising Wages for Federal Contract Workers - DOL Blog Federal minimum wage is still $7.25, but more than 20 states increased minimum wage in 2023. Sunset unacceptable subminimum wages for workers with disabilities employed in sheltered workshops and for workers under age 20. Wyoming and Georgia both have basic minimum hourly rates of $5.15. The Economic Policy Institute staff is unionized with the Its about dignity. This clause shall specify that, as a condition of payment, the minimum wage to be paid to workers employed in the performance of the contract or any covered subcontract thereunder, including workers whose wages are calculated pursuant to special certificates issued under section 14(c) of the Fair Labor Standards Act of 1938(29 U.S.C. Judge refuses to exempt Colorado river guides from new $15 federal It will reduce absenteeism, a change that has been linked to higher productivity, not just by the employees who are more present, but by their co-workers, too. It would hold at $5.15 through the rest of the '90s and most of the 2000s, a longer drought than even that which suffocated low-wage workers throughout the 1980s. EPIs research helps policymakers, opinion leaders, advocates, journalists, and the public understand the bread-and-butter issues affecting ordinary Americans. Abha Bhattarai, Amazon Boosts Minimum Wage to $15 for All Workers Following Criticism, Washington Post, October 2, 2018. Cristian Alonso, Beyond Labor Market Outcomes: The Impact of the Minimum Wage on Nondurable Consumption, Journal of Human Resources, forthcoming. You have JavaScript disabled. The federal minimum hourly wage is just $7.25 and Congress has not increased it since 2009. The federal minimum wage is $7.25 per hour. Answers to questions ranging from "How often does the minimum wage increase?" One of the arguments against raising the federal minimum wage is that many of the workers earning $7.25 are part-time teens and college students earning spending money through a side job. ol{list-style-type: decimal;} The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). .agency-blurb-container .agency_blurb.background--light { padding: 0; } Another 10 million additional workers. Share sensitive information only on official, Procurement contracts for construction covered by the DBA; Concessions contracts, including any concessions contract excluded from the SCA by the Departments regulations at 29 CFR 4.133(b); and. Based on calculations from the Economic Policy Institutes Family Budget Calculator, which measures the income a family needs to attain a secure yet modest standard of living in all counties and metro areas across the country. Find the minimum wage in your state. Minimum Wage Rates by State 2023 The federal minimum wage for covered nonexempt employees is $7.25 per hour. Ken Jacobs, Ian Eve Perry, and Jenifer MacGillvary, The Public Cost of a Low Federal Minimum Wage, University of California Berkeley, Labor Center, January 2021. OPM issued a memorandum for heads of Executive departments and agencies that provides implementing guidance for how agencies should adjust pay rates for General Schedule (GS) and Federal Wage System (FWS) employees stationed in the U.S., and how to use administrative authority for other pay systems to lift the pay of federal employees who currently make less than $15 per hour. What is the Minimum Wage for Workers Who Receive Tips? The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 7. 1600 Pennsylvania Ave NW 40. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages. (b) Where workers do not receive a sufficient additional amount on account of tips, when combined with the hourly cash wage paid by the employer, such that their wages are equal to the minimum wage under section 2 of this order, the cash wage paid by the employer, as set forth in this section for those workers, shall be increased such that their wages equal the minimum wage under section 2 of this order. Washington, DC 20500. It will help improve the economic security of their families and narrow racial and gender disparities in income. Extensive, high-quality research shows that higher minimum wages have the intended effect of raising wages without significantly reducing employmentoutcomes. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} Contracts in the four categories described above that were entered into, extended, or renewed prior to January 30, 2022, are generally subject to a lower minimum wage rate established by Executive Order 13658, Establishing a Minimum Wage for Contractors. Questions relating to Executive Orders 13658 and 14026 may be directed to the Wage and Hours Division of Government Contracts Enforcement at (202) 693-0064. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} 3. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} During his first week in office, President Biden signed an Executive Order on Protecting the Federal Workforce which directs the Director of OPM to provide a report to the President with recommendations to promote a $15 per hour minimum wage for federal employees. 55. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} Kate King, New York Boosts Minimum Wage and Some Businesses Balk, Wall Street Journal, January 4, 2021. Raising the federal minimum wage to $15 an hour by 2025 would increase wages for at least 17 million people, but also put 1.4 million Americans out of work, according to a study by the. Starting Jan. 30, 2022, we're raising the minimum wage for federal contract workers to $15.00 per hour. Its also the right thing to do. The U.S. minimum wage finally broke the $5 mark for the first time in history in 1997. 2705499, 2016. You have JavaScript disabled. 1 (February 2021). The lowest 10 percent earned less than $36,410, and the highest 10 percent earned more than $88,640. (a) The Secretary shall have the authority for investigating potential violations of and obtaining compliance with this order. Washington, DC 20500. Amanda Mull, Corporations Social Crusades Often Leave Out Workers, The Atlantic, June 28, 2019. Gradually raising the federal minimum wage to $15 by 2025 would lift pay for, Affected workers who work year round would, African Americans and Latinos are paid 10%15% less than white workers with the same characteristics, so. We'll be in touch with the latest information on how President Biden and his administration are working for the American people, as well as ways you can get involved and help our country build back better. 60. 23. 2023 Economic Policy Institute Henry Ford Health System, Henry Ford Among the First Michigan Health Systems to Raise Minimum Pay Rate to $15 Per Hour (press release), October 9, 2020. I can't think of anything more devastating at a time when our small businesses are barely getting back on their feet," said Rep. Elizabeth Ann Van Duyne, R-TX. Tweets by @EconomicPolicy Senate Says No To $15 Minimum Wage For Now, But Democrats Vow To - NPR Late last month, Democrats introduced the Raise the Wage Act of 2021, which would gradually increase the federal minimum wage from $7.25 to $15 by 2025. .h1 {font-family:'Merriweather';font-weight:700;} In fact, EPI's research shows that more than half of those who would benefit from a $15 federal minimum wage are workers between 25 and 54, the majority of whom are women. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } Provides general information concerning what constitutes compensable time under the FLSA. 37. The president once again called on Congress to raise the federal minimum wage to $15 an hour. The .gov means its official. The Federal minimum wage was last changed in 2008, when it was raised $0.70 from $6.55 to $7.25. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages. elaws - Fair Labor Standards Act Advisor - DOL Punch Pizza lost over $1 million in revenue last year and will likely continue to lose tens of thousands of dollars a month this winter. 54. Continues to index the federal contract minimum wage in future years to inflation. "We're trying to figure it out," Puckett says of the impact of the rising minimum wage on his business. Why Raising the Minimum Wage to $15 Is Good for the US - Business Insider 61. 27. Sec. This executive order will: Increase the hourly minimum wage for federal contractors to $15. guides and outfitters fell subject to federal minimum wage requirements under a broad rule implementing a $10.10 minimum wage for federal contractors . Ken Jacobs, Ian Eve Perry, and Jenifer MacGillvary, The Public Cost of a Low Federal Minimum Wage, University of California Berkeley, Labor Center, January 2021. #block-googletagmanagerheader .field { padding-bottom:0 !important; } The measure needs 60% of . Executive Order on Increasing the Minimum Wage for Federal Federal HR agency issues guidance to officially implement a $15 minimum wage for US federal employees, impacting workers in every state WASHINGTON, DC - Today, the U.S. Office of Personnel Management (OPM) announced that federal civilian employees in the U.S. will now be paid at least $15 per hour. For work performed prior to July 24, 2007, the Federal minimum wage is $5.15 per hour. About 1.1 million hourly workers earned wages that were at or below the minimum wage last year, according to the Bureau of Labor Statistics. Last modified on Wed 28 Apr 2021 16.06 EDT. "A federal, nationwide mandate to raise the minimum wage to $15 per hour will put us right back to where we were months ago American jobs destroyed, small businesses forced to close their doors and life savings gone to waste.