Congress is currently *considering* raising the minimum wage by $1.50, from $5.15 to $6.65 per hour in three installments. Congress last enacted legislation in 1996, increasing the minimum wage by 90 cents from 1996-1997.
A few states have increased their minimum wages. To check the effective dates and the minimum wage for each state, look at this chart showing all 50 states wages for 2005/2006/2007:
http://www.epinet.org/issueguides/minwage/table5.pdf
If your state increased the minimum wage, and you were making the minimum wage, your wages will be increased. If you were making more than the new minimum state wage, hopefully your employer will be smart, and will increase your wages so you will be making more than a brand new employee!
Why do we need a minimum wage increase?
A minimum wage increase of $2.10 by 2008 would raise the wages of 14.9 million workers. A minimum wage increase is needed to restore the minimum wage to historic levels. The inflation-adjusted value of the minimum wage is 30% lower in 2006 than it was in 1979. In addition, comparing the wages of minimum wage workers to average hourly wages, we find that the wages of minimum wage workers have not kept up with the wages of other workers. The minimum wage is 31% of the average hourly wage of American workers, the lowest level since 1947.
FYI: Congress has not increased the minimum wage in almost nine years—the second-longest stretch of government inaction since the minimum wage was enacted in 1938. Since the min wage is not adjusted for inflation, when Congress does not increase the minimum wage, the minimum wage continues to lose value.
Is every worker covered by the minimum wage?
The minimum wage law (the Fair Labor Standards Act) applies to employees of companies with revenues of at least $500,000 a year. It also applies to employees of smaller firms if the employees are engaged in interstate commerce or in the production of goods for commerce. Also covered are employees of federal, state, or local government agencies, hospitals, and schools. The law generally applies to domestic workers.
The FLSA contains a number of exemptions from the minimum wage that may apply to some workers. The law establishes a youth sub-minimum wage of $4.25 that employers can pay employees under 20 years of age during their first 90 consecutive calendar days of employment with an employer. Certain full-time students, student learners, apprentices, and workers with disabilities may be paid less than the minimum wage under special certificates issued by the Department of Labor. More information on other exempt workers is available from the Department of Labor, Wage, and Hour Division http://www.dol.gov./esa/minwage/q-a.htm.
Does the minimum wage cause job loss?
A 1998 EPI study failed to find any systematic, significant job loss associated with the 1996-97 minimum wage increase. In fact, following the most recent increase in the minimum wage in 1996-97, the low-wage labor market performed better than it had in decades (e.g., lower unemployment rates, increased average hourly wages, increased family income, decreased poverty rates). Studies of the 1990-91 federal minimum wage increase, as well as to studies by David Card and Alan Krueger of several state minimum wage increases, also found no measurable negative impact on employment. Finally, a recent Fiscal Policy Institute (FPI) study of state minimum wages found no evidence of negative employment effects on small businesses.
New economic models that look specifically at low-wage labor markets help explain why there is little evidence of job loss associated with minimum wage increases. These models recognize that employers may be able to absorb some of the costs of a wage increase through higher productivity, lower recruiting and training costs, decreased absenteeism, and increased worker morale.
Good luck!