Labor Law Center Blog » Blog Archive

Workers Minimum Wage

September 14th, 2006 Posted by Nicole

Many workers have benefited from the workers minimum wage in the U.S. since the minimum wage was first implemented in 1933. The minimum wage for workers was deemed to be necessary during the Great Depression, as work was scarce and employers were careful about where they allotted payment. The workers’ minimum wage in 1933, however, was a fraction of what it is today, coming in at under the equivalent of $3.50.

While the first workers’ minimum wage was low, it must be recognized that workers at that time would have worked for anything, including food or boarding. The minimum wage was intended not to be a living wage, but rather to help workers put food on the table. People generally recognized that a minimum wage job was not a long-term solution or method of growing wealth.

However, as time progressed, the minimum wage became more flexible and beneficial for workers. In 1968, the minimum wage for workers was higher than it has ever been, coming in at over the equivalent of $9.00 per hour. The minimum wage at that time was nearly enough to be considered a living wage, but workers were still finding it difficult to make a savings.

The workers minimum wage is overseen by the federal and state governments. Each state can select its own minimum wage, as long as that minimum wage is greater than the federal minimum wage. Many localities also opt to have a higher minimum wage than the state minimum wage. As such, some localities are experimenting with a true living wage for employees.

The workers living wage does not have to be the basis for the employers’ base pay. IN fact, many employers choose to pay their employees more than the base pay so that the employees can have comfortable lifestyles. Also, according to the minimum wage laws in some states, there are variations in the minimum wage. The variations can occur in workers minimum wage based on the workers age (if an employee is a minor) or they can occur based on the type of employment.