Brief history of minimum wage
As of June 25, 2012, the United States minimum wage laws have been in effect for 74 years. President Franklin D. Roosevelt signed the Fair Labor Standards Act (FLSA) into action in 1938 to guarantee certain labor rights. At the time, the bill established employers had to pay employees 25 cents an hour, it also banned oppressive child labor and limited the number of hours employees could work each week to 44.
Now, minimum wage rates have slowly climbed to $7.25 per hour, but a number of states have established even higher standards for workers. California, Nevada, Oregon, Washington, New Mexico, Arizona, Colorado, Illinois, Florida, Maine, Vermont, Massachusetts and Montana have all enacted higher rates than what federal laws require.
These rights, however, have not been easily won, Donald Cohen writes for the California Progress Report. In commemoration of the FLSA's 74th birthday, Cohen recollects businesses' aversion to proposed rate increases ever since the law was established. From hotels and department stores to the company that manages Burger King franchises, enterprises have consistently predicted higher base pay rates would break the American economy, yet nearly three-quarters of a century later, many businesses have managed to survive.
While employers may not enjoy minimum wage increases, it's important to abide by them. Violations of the FLSA could result in back wages and penalties, which would contribute to even higher payroll costs. To remain in compliance, businesses can install a solution as simple as a basic timelock to track employee attendance.
Now, minimum wage rates have slowly climbed to $7.25 per hour, but a number of states have established even higher standards for workers. California, Nevada, Oregon, Washington, New Mexico, Arizona, Colorado, Illinois, Florida, Maine, Vermont, Massachusetts and Montana have all enacted higher rates than what federal laws require.
These rights, however, have not been easily won, Donald Cohen writes for the California Progress Report. In commemoration of the FLSA's 74th birthday, Cohen recollects businesses' aversion to proposed rate increases ever since the law was established. From hotels and department stores to the company that manages Burger King franchises, enterprises have consistently predicted higher base pay rates would break the American economy, yet nearly three-quarters of a century later, many businesses have managed to survive.
While employers may not enjoy minimum wage increases, it's important to abide by them. Violations of the FLSA could result in back wages and penalties, which would contribute to even higher payroll costs. To remain in compliance, businesses can install a solution as simple as a basic timelock to track employee attendance.
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