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When was the federal minimum wage enacted?

Author

Emily Carr

Published Feb 19, 2026

When was the federal minimum wage enacted?

National minimum wage law enacted, June 24, 1938. On this day in 1938, a federal minimum wage went into effect under the Fair Labor Standards Act. Congress initially set the wage at 25 cents an hour, which amounted to about $3.80 in current dollars.

Accordingly, when did federal minimum wage start?

1938

Also, what was federal minimum wage in 1985? Barack Obama says the minimum wage was higher during Ronald Reagan's first State of the Union

YearMinimum wageWage in 2013 dollars
1984$3.35$7.51
1985$3.35$7.25
1986$3.35$7.12
1987$3.35$6.87

Beside above, why was the minimum wage law enacted?

Overview. The national minimum wage was created by Congress under the Fair Labor Standards Act (FLSA) in 1938. The purpose of the minimum wage was to stabilize the post-depression economy and protect the workers in the labor force.

How many times has the federal minimum wage been raised?

Since the first federal minimum wage was set in 1938, it has been raised 22 times by 12 different presidents.

Which states raised minimum wage in 2020?

24 States Raising Minimum Wage in 2020
  • Alaska, with an hourly increase from $9.89 to $10.19.
  • Arizona, $11 to $12.
  • Arkansas, $9.25 to $10.
  • California, $12 to $13.
  • Colorado, $11.10 to $12.
  • Connecticut, $11 to $12 on Sept.
  • Florida, $8.46 to $8.56.
  • Illinois, $8.25 to $9.25.

What is minimum wage in the year 2020?

1, 2020, the state minimum wage for employers with 25 or fewer employees will increase to $12 per hour from the current $11, and the state minimum wage for employers with 26 or more employees will increase to $13 per hour from the current $12.

What was the average hourly wage in 1950?

Minimum hourly wage of workers in jobs first covered by
Effective Date1938 Act 11961 Amendments 2
Jan 25, 1950$0.75
Mar 1, 1956$1.00
Sep 3, 1961$1.15$1.00
Sep 3, 1963$1.25

What was federal minimum wage in 1970?

The minimum wage went to $1.00 an hour effective February 1967 for newly covered nonfarm workers, $1.15 in February 1968, $1.30 in February 1969, $1.45 in February 1970, and $1.60 in February 1971. Increases for newly subject farm workers stopped at $1.30.

What was minimum wage in 1978?

Minimum hourly wage of workers in jobs first covered by
Effective Date1938 Act 1
Jan 1, 1978$2.65 for all covered, nonexempt workers
Jan 1, 1979$2.90 for all covered, nonexempt workers
Jan 1, 1980$3.10 for all covered, nonexempt workers
Jan 1, 1981$3.35 for all covered, nonexempt workers

What was the original minimum wage?

The US minimum wage through the years
When President Franklin D. Roosevelt signed America's first federal minimum wage into law in 1938, it was 25 cents per hour. Adjusted for inflation, that would be worth about $4.45 today.

Did Obama raise minimum wage?

President Barack Obama strongly supported increasing the minimum wage, giving speeches about it urging Congress to take action. Obama argued that "if you pay people well, there's more money in everybody's pockets, and everybody does better."

What was minimum wage in 1973?

In the year 1973, the United States minimum wage was $1.60.

What was minimum wage in 1982?

Barack Obama says the minimum wage was higher during Ronald Reagan's first State of the Union
YearMinimum wageWage in 2013 dollars
1982$3.35$8.09
1983$3.35$7.84
1984$3.35$7.51
1985$3.35$7.25

Why is US minimum wage so low?

Low-wage workers in particular are falling behind because the federal minimum wage has not been raised in 10 years, remaining stuck at $7.25 per hour since 2009. Since the minimum wage was first established in 1938, Congress has never let it go unchanged for so long.

Is minimum wage meant to be a livable wage?

The minimum wage is meant to be a living wage. In 1933, five years before the first minimum wage became law, President Franklin Delano Roosevelt said: “By living wages, I mean more than a bare subsistence level.

What was the average income in 1975?

Indexing yearly income
YearWage IndexYear
1975$8,630.921976
1978$10,556.031979
1981$13,773.101982
1984$16,135.071985

How minimum wage is determined?

Minimum wage rates are determined by factors such as poverty threshold, prevailing wage rates as determined by the Labor Force Survey, and socio-economic indicators (i.e. inflation, employment figures, Gross Regional Domestic Product, among others), which insures better workers protection.

What was the average salary in 1982?

Indexing yearly income
YearWage IndexYear
1981$13,773.101982
1984$16,135.071985
1987$18,426.511988
1990$21,027.981991

What states have minimum wage at $15 an hour?

Illinois, Maryland, New Jersey on Board
The year began with $15 minimum wage laws on the books in three states—California, Massachusetts, and New York—plus the District of Columbia. That list quickly expanded as Illinois, Maryland, and New Jersey enacted similar legislation in February and March.

What was minimum wage 30 years ago?

The minimum went to $2.65 an hour in January 1978, $2.90 in January 1979, $3.10 in January 1980, and $3.35 in January 1981.

What was California's minimum wage in 1993?

History of California Minimum Wage
Effective DateNew Minimum WageOld Minimum Wage
October 1, 1996$4.75$4.25
July 1, 1988$4.25$3.35
January 1, 1981$3.35$3.10
January 1, 1980$3.10$2.90

What was the average hourly wage in 1985?

Chart 1a Average hourly earnings by source and minimum wage
YearSEPH—ManufacturingMinimum wage
198522.58.06
198622.27.88
198721.87.94
198821.78.00

What was minimum wage in 1976?

The minimum wage increased to $2.00 an hour in 1974, $2.10 in 1975, and $2.30 in 1976 for all except farm workers, whose minimum initially rose to $1.60.

What was California minimum wage in 1992?

History of California Minimum Wage
Effective DateNew Minimum WageOld Minimum Wage
October 1, 1996$4.75$4.25
July 1, 1988$4.25$3.35
January 1, 1981$3.35$3.10
January 1, 1980$3.10$2.90

What would minimum wage be today if it kept up with inflation?

If the federal minimum wage kept up with inflation it would be $10.75 an hour, not the $7.25 it is today. If the federal minimum wage had kept pace with workers' productivity since 1968, the inflation-adjusted minimum wage would be $18.67.

What was the federal minimum wage in 1987?

Barack Obama says the minimum wage was higher during Ronald Reagan's first State of the Union
YearMinimum wageWage in 2013 dollars
1987$3.35$6.87
1988$3.35$6.60
1989$3.35$6.29
2013$7.25$7.25

What would happen if minimum wage was raised to $15?

First, that raising the minimum wage increases the average income of low-wage workers, lifting many out of poverty (depending on how big the raise is). Their study found that raising the federal minimum wage to $15 an hour by 2024 would likely boost incomes for the poorest households in rural counties.

What would happen if minimum wage was raised?

Raising the minimum wage increases consumer spending and boosts the economy. A study by Doug Hall and David Cooper estimated that a $2.55 increase in the minimum wage would increase the earnings of low-wage workers by $40 billion and result in a significant increase in GDP and employment.

What is the highest minimum wage in the world?

A landmark legal case in 1907 took a more expansive view of a fair wage, ruling that it should be enough to maintain a family with three children in “frugal comfort”. Australia is still at it: it now has the world's most generous minimum wage, reclaiming a distinction it last held more than a decade ago.

What states raised minimum wage?

California, Illinois, and Massachusetts are all set to raise their minimum wages to $15.00 per hour by January 1, 2023 for California and Massachusetts and by 2025 for Illinois. Colorado raised its minimum wage from $9.30 per hour to $12 per hour by January 1, 2020, rising $0.90 per year.

What was minimum wage designed?

The purpose of the minimum wage was to stabilize the post-depression economy and protect the workers in the labor force. The minimum wage was designed to create a minimum standard of living to protect the health and well-being of employees.