The minimum wage in the United States is set by U.S. labor law and a range of state and local laws. The first federal minimum wage was created as part of the National Industrial Recovery Act of 1933, signed into law by President Franklin D. Roosevelt, but declared unconstitutional. In 1938 the Fair Labor Standards Act established it at $0.25 an hour ($5.19 in 2022 dollars). Its purchasing power peaked in 1968 at $1.60 ($13.46 in 2022 dollars).[1] The Fair Minimum Wage Act of 2007 has set the minimum wage at $7.25 per hour since 2009. The real value of the federal minimum wage in 2022 dollars has decreased by 46% since its inflation-adjusted peak in February 1968.
Provisions
Minimum Wage Increases
The most recently introduced bill would gradually increase the minimum wage over the next 5 years as follows:[5]
Regular Employee
Effective Date
New Minimum Wage
The next year on January 1
$9.50
1 year later
$11.00
2 years later
$12.50
3 years later
$14.00
4 years later
$15.00
Employees with Disabilities
Effective Date
New Minimum Wage
The next year on January 1
$5.00
1 year later
$7.50
2 years later
$10.00
3 years later
$12.50
4 years later
$15.00
Tipped Employees
The bill raises the minimum wage to $4.95 an hour for tipped employees and their employers.[5]
New Employees that are 20 years old or less
The bill raises the minimum wage to $6.00 an hour for newly hired employees who are 20 years older or less.[5]
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