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Labor
Labor Issues The 110th Congress is debating two labor issues which have created a great deal of interest, the Minimum Wage and the Union Card Check provisions of the Fair Labor Standards Act of 1938. Minimum wage Few labor issues generate more interest on both sides of the debate than that of raising the minimum wage.
In response to deplorable working conditions, The Fair Labor Standards Act of 1938 (FLSA) was passed and provides for minimum standards for both wages and overtime entitlement, and spells out administrative procedures by which covered work time must be compensated. Also, included in the Act are provisions related to child labor and equal pay.
Minimum Wage
On May 25, 2007, the President signed into law a supplemental appropriations bill ( H.R. 2206, P.L. 110-28 U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007) which included an increase in the federal minimum wage with special provisions for American Samoa and for the Commonwealth of the Northern Mariana Islands (CNMI). Under the act, the federal minimum wage will increase to $5.85 an hour on the 60th day after enactment and, in steps, to $7.25 per hour by the summer of 2009. Smaller increases will apply to the CNMI and to American Samoa until $7.25 is reached.
Although the FLSA mandates that not less than the minimum wage be paid to most workers, there are exceptions. For example, under the tip credit provisions of the act, the employer is required to pay $2.13 per hour -- so long as the remaining portion of the minimum wage is accounted for in tips regularly received. Similarly, a youth (under 20 years of age) can be paid $4.25 per hour through the first ninety consecutive days of employment with an employer. Persons with disabilities can be paid a wage commensurate with their productivity -- but with no minimum standard. And, some employees of small businesses may be entirely exempt from the federal minimum wage. Conversely, some states have minimum wage laws that are in excess of the federal minimum wage -- some, significantly so. Where there is overlapping jurisdiction, the wage more nearly in the workers' interests prevails.
Table 1. Federal Minimum Wage Rates, 1938-2009
|
Public law |
Effective date |
Rate |
|
P.L. 75-718 (Enacted June 25, 1938) |
October 1938
October 1939
October 1945 |
$0.25
0.30
0.40 |
|
P.L. 81-393 (Enacted October 26, 1949) |
January 1950 |
0.75 |
|
P.L. 84-381 (Enacted August 12, 1955) |
March 1956 |
1.00 |
|
P.L. 87-30 (Enacted May 5, 1961) |
September 1961
September 1963 |
1.15
1.25 |
|
P.L. 89-601 (Enacted September 23, 1966) |
February 1967
February 1968 |
1.40
1.60 |
|
P.L. 93-259 (Enacted April 8, 1974) |
May 1974
January 1975
January 1976 |
2.00
2.10
2.30 |
|
P.L. 95-151 (Enacted November 1, 1977) |
January 1978
January 1979
January 1980
January 1981 |
2.65
2.90
3.10
3.35 |
|
P.L. 101-157 (Enacted November 17, 1989) |
April 1990
April 1991 |
3.80
4.25 |
|
P.L. 104-188 (Enacted August 20, 1996) |
October 1996
September 1997 |
4.75
5.15 |
|
P.L. 110-28 (Enacted on May 25, 2007) |
July 2007
July 2008
July 2009 |
5.85
6.55
7.25 |
Table 2. Status of State Minimum Wage Rate (as of April 30, 2007)
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Jurisdictions with minimum wage rates higher than the federal FLSA |
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Alaska ($7.15) |
Iowa ($6.20) |
North Carolina ($6.15) |
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Arizona ($6.75) |
Maine ($6.75) |
Ohio ($6.85) |
|
Arkansas ($6.25) |
Maryland ($6.15) |
Oregon ($7.80) |
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California ($7.50) |
Massachusetts ($7.50) |
Pennsylvania ($6.25) |
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Colorado ($6.85) |
Michigan ($6.95) |
Rhode Island ($7.40) |
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Connecticut ($7.65) |
Minnesota ($6.15) |
Vermont ($7.53) |
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Delaware ($6.65) |
Missouri ($6.50) |
Virgin Islands ($6.15) |
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District of Columbia ($7.00) |
Montana ($6.15) |
Washington ($7.93) |
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Florida ($6.67) |
Nevada ($6.15) |
West Virginia ($5.85) |
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Hawaii ($7.25) |
New Jersey ($7.15) |
Wisconsin ($6.50) |
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Illinois ($6.50) |
New York ($7.15) |
|
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Jurisdictions with minimum wage rates at the same level as the federal FLSA ($5.15) |
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Georgia |
New Hampshire |
Texas |
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Guam |
New Mexico |
Utah |
|
Idaho |
North Dakota |
Virginia |
|
Indiana |
Oklahoma |
Wyoming |
|
Kentucky |
Puerto Rico |
|
|
Nebraska |
South Dakota |
|
|
Jurisdictions with minimum wage rates less than the federal FLSA |
|
American Samoaa |
Kansas ($2.65) |
Commonwealth of the Northern Mariana Islandsa |
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Jurisdictions with no state minimum wage requirement |
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Alabama |
Mississippi |
Tennessee |
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Louisiana |
South Carolina |
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Source: U.S. Department of Labor, Wage and Hour Division, Employment Standards Administration, http://www.dol.gov/esa/minwage/america.htm, visited June 6, 2007.
Note: Coverage patterns vary from one jurisdiction to another: some new changes are already scheduled. Some jurisdictions have a structured minimum wage system (i.e., different rates for various industries, sizes of firms, etc.). The table refers to the highest standard applicable under current state law. In some jurisdictions, the rate is linked to the federal FLSA.
a. For American Samoa and the CNMI, the minimum wage rate is lower than the general federal minimum wage but, under P.L. 110-28, will rise, in steps, to meet standards set by federal legislation.
Union Card Check
Union Recognition System The National Labor Relations Act of 1935 gives private sector workers the right to join or form a labor union and to bargain collectively over wages, hours, and other working conditions.
The 110th Congress is debating changing the procedures of this act regarding union recognition. Currently, there are three ways for a union to be recognized. First, a petition is filed by 30% of employees, then a secret ballot election is called and a majority of employees voting in a secret ballot election may choose to be represented by a union. Second, an employer may voluntarily recognize a union if a majority of employees who would be covered by a union have signed authorization cards. Finally, the National Labor Relations Board may order an employer to recognize and bargain with a union if a majority of employees have signed authorization cards and the employer has engaged in unfair labor practices that make a fair election unlikely. Some prefer that the use of signed authorization cards should be predominant. The signing and collection of authorization cards is an open process in which union organizers, other employees and employers could influence the employee. In past Congresses, Congressman Bartlett has been a co-sponsor of legislation supporting the use of the secret ballot. The secret ballot works through out the country as we elect our local, state, and federal office holders and he believes that it’s the best way for the individual, without fear of reprisal from employer or fellow worker, to express his or her will.
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