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The Reasons Why Federal Minimum Wage Is Raised

In: English and Literature

Submitted By sususu
Words 1800
Pages 8
ENG 111
10 March 2014
The Reasons Why Federal Minimum Wage Is Raised
U.S. President Barack Obama signed an executive order on February 12, 2014 to raise the minimum wage for federal contract workers to $10.10 an hour starting next year and encouraged employers nationwide to increase wages for their workers. The president also announced during his State of the Union address last month that he intended to take executive action to raise wages for federal contract workers (Mason).
Order to understand this issue, we are going to understand what the Federal Minimum Wage is and when started it in the U.S.A. According to the United States Department of Labor (USDL), early in the administration of the Fair Labor Standard Act (FLSA), it started to be apparent that the use of the legal minimum wage was prone to producing undesirable efforts upon the financial systems of Puerto Rico and also the Virgin Island if put on all their covered industries. As a result, on June 26, 1940, an amendment was passed prescribing the establishment of special industry committees to find out, and problem through wage orders, the minimum, wage levels relevant in Puerto Rico and also the Virgin islands. The rates established by industry committees might be under the legal rates relevant elsewhere within the United States. In 1949, the minimum wage was elevated from 40 cents an hour or so to 75 cent an hour so for those employees and minimum wage coverage was extended to incorporate employees in mid-air transport industry. A 1955 amendment elevated the minimum wage to $1.00 an hour or so without any alterations in coverage. The 2007 changes elevated the minimum wage to $5.85 each hour effective July 24, 2007 $6.55 each hour effective July 24, 2008 and $7.25 each hour effective August 24, 2009 ("Wage and Hour Division").
The Federal Minimum Wage guarantees labors' living wage. Why should

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