In 2014, the united states defined poverty as the state in which anyone is surviving on less than4/13/2024 The minimum wage is the lowest amount an employer may pay a worker for an hour of work, with the exception of tipped wage workers who may receive a subminimum wage as long as their wages with tips amount to at least the mandated minimum wage per hour. The federal minimum wage was created by Congress in 1938 as part of the Fair Labor Standards Act, which also included federal guidance on overtime pay and child labor regulations. With the COVID-19 pandemic laying bare the dire economic situation for many of America’s essential, low-wage workers, now is the time to increase the federal minimum wage to meet the true cost of living. Additionally, it would need to adjust regularly to keep pace with inflation and cost of living increases. A true living wage that supports a basic standard of living without food and housing insecurity would be between $20 and $26 or more per hour depending on the state. However, even that amount is inadequate to truly support working families. ![]() Recent calls to raise the federal minimum wage to $15 per hour are necessary and well-intentioned. Employees working full-time at minimum wage cannot afford basic necessities, such as food, housing, transportation, childcare, and healthcare in any location across the country. ![]() minimum wage was never truly a living wage, over time it has done less to reflect the true value of workers and no longer supports families in a way that promotes health and keeps them out of poverty. The federal minimum wage has remained stagnant at $7.25 per hour for the past 12 years. Minimum Wage is Not Enough: A True Living Wage is Necessary to Reduce Poverty and Improve Health 2021 Overview
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