Tuesday, February 23, 2010

Chapter 11

Minimum Wage
In the U.S. employers must pay employees atleast minimum wage established by the law. At the federal level the 1938 fair labor standards act establishes a minimum wage that is $6.55 per hour as of July 2008 and $7.25 per hour as of July 2009. Which is crazy to me because I remember my first job I had when I was 16 paid minimum wage, which was only $5.15 per hour back then! Therefore min. wage does not seem that bad to me, $7.25 per hour sounds pretty good compared to what I got even though I know it is not. The FSL also permits a lower training wage, which employees may pay to workers under the age of 20.

An issue related to minimum wage is that it tends to be lower than the earnings required for a full-time worker to rise above the poverty level. A number of cities have passed laws requiring a so called living wage, essentially a min. wage based on the cost of living in a particular area or state. I thought of Cali because I know that the cost of living is higher in Cali therefore what employees make/min wage is alot higher than it is here. Makes me want to move to Cali, even though everything would cost more.

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