President Barack Obama, who plans to act unilaterally to raise the minimum wage for employees of federal contractors, is expected to press Congress to approve a broader increase in his State of the Union address. Democrats support an increase but many Republicans and business leaders are opposed. Mr. Obama and congressional Democrats want to raise the federal minimum wage to $10.10 an hour over two years and index it to inflation afterwards. Here are some facts, based on Labor Department data, to help frame the debate:
What is the minimum wage?
It’s the least amount an employer can legally pay an hourly worker. Lower minimum wages are established for employees who receive tips, for new workers under the age of 20 and for workers in certain U.S. territories.
How much is the minimum wage?
The minimum wage for hourly workers in the U.S. is $7.25 an hour. Workers who primarily earn tips must be paid $2.13 an hour. As of Jan. 1, 20 states and Washington, D.C., mandated a minimum wage above the federal level. Washington had the highest hourly rate at $9.32. Nine states have minimum wages below the federal level or no minimum. Employers in those states are required to pay the federal minimum.
When was the minimum wage last increased?
Congress last approved an increase in 2007 to be phased in over two years. The final increase, a 70-cent raise, came on July 24, 2009.
When was the minimum wage created?
The first federal minimum wage of 25 cents an hour was established in 1938 under the Fair Labor Standards Act. The wage initially applied to workers “engaged in interstate commerce,” but was greatly expanded in the 1960s.
Who is paid minimum wage?
In 2012, 4.7 million U.S. workers earned the minimum wage or less per hour. Of those, 50.6% were 24 or younger and 64.4% were women. Among minimum wage workers, 20.2% were Latino and 15% were black. Most worked part-time positions, with only 35.5% holding a full-time job.
Where do they work?
The food-service industry employed 43.8% of minimum wage workers, the most of any sector. The next largest sectors were sales, with 15.4% of workers, and personal care, with 7.5%.
Where do they live?
In Texas, 12.7% of hourly workers earned the minimum wage or less, by far the largest share of any state. New York had the next highest share at 6.3%, followed by Florida at 6%. Less than 0.2% of hourly workers in Alaska, Montana, Vermont and the District of Columbia received the minimum pay or less.
What is their education?
Of minimum wage workers, 27.9% do not have a high school diploma and 57.9% graduated from high school but do not have a college degree.
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Obama to Raise Minimum Wage for Federal Contractors