How often does minimum wage increase?
The Fair Labor Standards Act (FLSA), established in 1938, set the minimum wage for all non-exempt employees at 25 cents an hour. Since then, the bar has been raised and as of 2009, workers must receive at least $7.25 per hour for their time attendance.
Since employers are required to adhere to and pay for these wage hikes, they might be concerned about how often the increases take place. The FLSA does not include a timeframe that dictates federal standard hikes, nor does it include a provision for automatic increases. Rather, any changes must first be passed through Congress and then be signed into law by the President.
Historically, minimum wage increases have been sporadic, with the first 5 cent raise taking place on October 24, 1939, exactly one year from the time the FLSA went into effect. The subsequent hike didn't go into effect until the same date in 1945, at which point employers were asked to pay an extra 10 cents per hour.
While basic pay increases may not be good news for employers operating on tight budgets, it's important to uphold all changes. Businesses that fail to pay employees minimum wage could be investigated by the Wage and Hour Division and subject to penalties for noncompliance.
Since employers are required to adhere to and pay for these wage hikes, they might be concerned about how often the increases take place. The FLSA does not include a timeframe that dictates federal standard hikes, nor does it include a provision for automatic increases. Rather, any changes must first be passed through Congress and then be signed into law by the President.
Historically, minimum wage increases have been sporadic, with the first 5 cent raise taking place on October 24, 1939, exactly one year from the time the FLSA went into effect. The subsequent hike didn't go into effect until the same date in 1945, at which point employers were asked to pay an extra 10 cents per hour.
While basic pay increases may not be good news for employers operating on tight budgets, it's important to uphold all changes. Businesses that fail to pay employees minimum wage could be investigated by the Wage and Hour Division and subject to penalties for noncompliance.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.