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Increasing the Federal Minimum Wage
The Democratic-led Congress passed a federal minimum wage increase that went into effect on July 24, 2007, giving millions of hard-working Americans a well-deserved pay raise.
The federal minimum wage increase will occur in three steps:
- This year it increased by 70 cents, from $5.15 per hour to $5.85 per hour;
- One year later, in 2008, it will rise to $6.55; and
- In 2009, it will increase to $7.25.
California Leads the Way With Fair Wages
During the past ten years when the federal minimum wage remained stagnant, states like California took action and independently raised their state minimum wages.
California workers receive a minimum of $7.50 per hour (increasing to $8.00 per hour next year). And many California cities and counties stipulate that workers must be paid a living wage, which in some cases guarantees an additional $3 or $4 per hour.
Higher Wages Help Lead to Improved Quality of Life
 Many Americans do not live in areas with a higher minimum wage. For these workers, a full-time job at the old minimum wage of $5.15/hour brought in less that $11,000 per year—well below the poverty line for families.
That’s why the federal minimum wage increase is so long overdue. When the federal minimum wage reaches $7.25 in 2009, it will add nearly $4,400 to a minimum wage worker’s annual income.
An estimated 13 million American will benefit from the increase. Eighty percent are adults, most of whom are full-time employees.
A higher minimum wage means the difference between self-sufficiency and poverty for millions of American families who struggle to make ends meet.
For more information on the minimum wage, please visit the Department of Labor: www.dol.gov/dol/topic/wages/index.htm.
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