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History of the federal minimum wage in real and nominal dollars.

The Fair Minimum Wage Act of 2007 (Pub.L. 110-28, Title VIII) is a US Act of Congress that amends the Fair Labor Standards Act of 1938 and gradually raises the federal minimum wage from $5.15 per hour to $7.25 per hour. It was signed into law on May 25, 2007 as part of the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007. The act raises the federal minimum wage in 3 increments: to $5.85 per hour 60 days after enactment (2007-07-24), to $6.55 per hour 12 months after that (2008-07-24), and finally to $7.25 per hour 12 months after that (2009-07-24).

It transitions the Northern Mariana Islands and American Samoa to the minimum wage on alternate timetables.

Contents

Legislative history

The act was a component of the new Democratic majority's 100-Hour Plan in the United States House of Representatives. It was introduced into the House on January 5, 2007, by George Miller (D-CA) and it was passed by the House on January 10. All 233 House Democrats voted "Aye," and 82 Republicans joined them. 116 Republican representatives voted "No," and 4 representatives did not vote. President Bush advised that the bill should include tax cuts for small businesses that could be harmed by the wage increase, and on January 24, 2007, a cloture motion in the Senate failed as 43 Republican Senators (all but 5) rejected the bill without the tax cuts, opposing all 47 Democrats who were present for the vote. Once tax cuts were added to the bill, the Senate passed the amended bill 94-3 (3 Republicans opposed and 1 did not vote; 2 Democrats did not vote) on February 1, 2007.

The act initially did not amend the Fair Labor Standards Act in regards to American Samoa—its minimum wage would have continued to be set by a committee appointed by the U.S. Department of Labor until changes were made to the act.[1][2] After accusations by Republican lawmakers that Speaker of the House Nancy Pelosi was unethical because Del Monte (parent company of StarKist Tuna which owns one of the two tuna canneries in Samoa) is based in her district, she instructed a House committee to have Samoa be included. Samoa's representative Eni Faleomavaega noted that the territory has not been subject to the mainland minimum wage and said, "...the global tuna industry is so competitive that it is no longer possible for the federal government to demand mainland minimum wage rates for American Samoa without causing the collapse of our economy...".[3]

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Final passage

The minimum wage was passed by the House and the Senate on May 24, 2007 as part of HR 2206, the supplemental aid to the Iraq War. As part of the deal, $4.8 billion worth of tax breaks are going to be given to small business over a 10-year period to offset the wage increase. The bill was thus ultimately enacted as a rider to the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act of 2007. President George W. Bush signed the bill on the next day.[4]

Omissions

The minimum wage increase did not change the wage for tipped employees. Originally, it was automatically increased by being pegged to a percentage of the regular minimum wage. However, that changed during the 1990s. The federal tipped employee wage, therefore, remains at $2.13. [5]

See also

References

Notes

External links


Source material

Up to date as of January 22, 2010

From Wikisource

U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007
Title VIII − Fair Minimum Wage And Tax Relief
Subtitle A − Fair Minimum Wage

SUBTITLE A — FAIR MINIMUM WAGE

Contents

Sec. 8101. Short Title.

This subtitle may be cited as the ``Fair Minimum Wage Act of 2007´´.

Sec. 8102. Minimum Wage.

(a) In General.—
Section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to read as follows:
``(1) except as otherwise provided in this section, not less than—
``(A) $5.85 an hour, beginning on the 60th day after the date of enactment of the Fair Minimum Wage Act of 2007;
``(B) $6.55 an hour, beginning 12 months after that 60th day; and
``(C) $7.25 an hour, beginning 24 months after that 60th day;´´.
(b) Effective Date.—
The amendment made by subsection (a) shall take effect 60 days after the date of enactment of this Act.

Sec. 8103. Applicability of Minimum Wage to American Samoa and the Commonwealth of the Northern Mariana Islands.

(a) In General.—
Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) shall apply to American Samoa and the Commonwealth of the Northern Mariana Islands.
(b) Transition.—
Notwithstanding subsection (a)—
(1) the minimum wage applicable to the Commonwealth of the Northern Mariana Islands under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall be—
(A) $3.55 an hour, beginning on the 60th day after the date of enactment of this Act; and
(B) increased by $0.50 an hour (or such lesser amount as may be necessary to equal the minimum wage under section 6(a)(1) of such Act), beginning 1 year after the date of enactment of this Act and each year thereafter until the minimum wage applicable to the Commonwealth of the Northern Mariana Islands under this paragraph is equal to the minimum wage set forth in such section; and
(2) the minimum wage applicable to American Samoa under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall be—
(A) the applicable wage rate in effect for each industry and classification under section 697 of title 29, Code of Federal Regulations, on the date of enactment of this Act;
(B) increased by $0.50 an hour, beginning on the 60th day after the date of enactment of this Act; and
(C) increased by $0.50 an hour (or such lesser amount as may be necessary to equal the minimum wage under section 6(a)(1) of such Act), beginning 1 year after the date of enactment of this Act and each year thereafter until the minimum wage applicable to American Samoa under this paragraph is equal to the minimum wage set forth in such section.
(c) Conforming Amendments.—
(1) In General.—
The Fair Labor Standards Act of 1938 is amended—
(A) by striking sections 5 and 8; and
(B) in section 6(a), by striking paragraph (3) and redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.
(2) Effective Date.—
The amendments made by this subsection shall take effect 60 days after the date of enactment of this Act.

Sec. 8104. Study on Projected Impact.

(a) Study.—
Beginning on the date that is 60 days after the date of enactment of this Act, the Secretary of Labor shall, through the Bureau of Labor Statistics, conduct a study to—
(1) assess the impact of the wage increases required by this Act through such date; and
(2) project the impact of any further wage increase, on living standards and rates of employment in American Samoa and the Commonwealth of the Northern Mariana Islands.
(b) Report.—
Not later than the date that is 8 months after the date of enactment of this Act, the Secretary of Labor shall transmit to Congress a report on the findings of the study required by subsection (a).

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