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Alison Doyle

Fair Minimum Wage Act of 2012

By July 26, 2012

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The U.S. Senate and House of Representatives have introduced the Fair Minimum Wage Act of 2012. If passed, the legislation would raise the federal minimum wage from $7.25 an hour to $9.80 by 2014. The minimum wage rate would increase in several steps. It would also provide for annual increases in the rate in future years tied to increases in the cost of living.

If passed the increases would be as follows:

  • $8.10 an hour, beginning on the first day of the third month that begins after the date of enactment of the Fair Minimum Wage Act of 2012 (approximately 90 days after legislation is passed)
  • $8.95 an hour, beginning 1 year after that first day (first annual increase)
  • $9.80 an hour, beginning 2 years after that first day (second annual increase)
  • Annually thereafter

Some states have a higher minimum wage than the federal minimum. If a worker is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.

The bills are sponsored by Senator Tom Harkin (D-IA), chair of the Health, Education, Labor and Pensions Committee in the Senate, and Representative George Miller (D-CA), ranking member of the House Committee on Education and the Workforce.

It's too early to tell what chance the legislation has of getting passed, but it is, at least, a step in right direction to increasing wages for the lowest paid American workers.

Read More: Minimum Wage | Minimum Wage Increases for 2012 | How Much is Minimum Wage?

Comments
July 29, 2012 at 3:11 pm
(1) mjk12 says:

Employers have a fixed amount in the salary pot. While those with lower paying jobs will be paid more, not necessarily earn more, more people will lose their jobs and those left will be expected to do the jobs of the two or three who were let go.

Also, there is no need to ask why employers only hire temp workers or part time workers. Raising the minimum wage is your answer.

September 4, 2012 at 10:07 pm
(2) Kathy says:

Before all the corporations took over, people were generally paid better. Private business used to take care of their people. There were also strong unions who negotiated good wages. I remember being told at work “It’s our employees that keep us strong and we appreciate you” Now they say “you’re lucky to have a job” That’s pathetic…
There are people who know the whys and hows to this mess much better than I do…all I know for sure is that there are a lot of greedy people who found a way to get most of the pie for themselves and we’re letting them because we’re too busy trying to make do to take care of these issues, that we trust to the “suits” It’s their job and we have been failed miserably.

Even if you’re doing okay right now, if the economy collapses, chances are you won’t be. Increased wages for corporate workers would undoubtably boost the overall economy.

Yes, I do believe a person sweeping the airport or flipping burgers or taking care of the elderly should be paid a livable wage. At least 12.00 dollars. I’m talking about 12.00. Instead of the 8.00 they are probably making. Why? Because they easily could be!! It is wrong not to pay people a livable wage. Everything has gone up that we need to pay for to live. All these industries are corporations. Wealthy corporations. who should be required to pay their people.

Now the corporations are doing all they can to end the Unions. What a rediculous idea….people are being strategically spoon fed. Of course the corporations don’t want unions. I wish people would educate themselves on that subject too. Good luck everyone, and don’t believe everything they tell you.

September 4, 2012 at 10:43 pm
(3) Kathy says:

Oh, and of course, raise the minimum wage! Where I work we do the work of 2 or 3 people now but working in retail is alot easier than production and manufacturing was before they gave all those jobs away…Union jobs that paid better. Alot better.
Let’s make these corporations carry the responsibility for all the wealth they are creating for themselves.
There were always wealthier people. Getting rich off the backs of the little people but they paid those little people alot better.

September 8, 2012 at 1:34 am
(4) DeAndre says:

I’m working in GA which is the lowest of US States and this is my second year at my job. I am currently making 8.40, and although we are able to make .50 raise twice a year, Ive never received a full .50 and I have been great at what I do. Note that this is a production job. Now if this bill is passed by 2014 and considering that I make a full(which is highly unlikely) .50 raise which is 1.00 a year, I will be making 10.40 by the end of 2014 and thats only .60 more than a new employee that would be making minimum wage. Not only that, my company usually pays .25 more than the federal minimum wage so I will be making .35 more than a new hire. I don’t know how this will affect the company but some changes will HAVE to be made!!

November 2, 2012 at 1:58 pm
(5) Tina says:

Just for a comparison, Australia’s current minimum wage is $15.96. I refuse to believe that large US corporations ( walmart, mcdonald) would have any trouble meeting that standard. As Kathy said above, I dont’ mind you getting rich off the backs of the little people but pay those little people better.

December 10, 2012 at 7:18 pm
(6) Eddie says:

Its good that the minimum wage is going up. but i think that these companies trying to protect their huge profit margins will simply just start charging more for their products or services potentially so much so that it will exaggerate the problem that their trying to fix and eventually make things worse. And on top of that (historically speaking) have mass layoffs and make those who remain do more work. There are more and more wage increases in the last few decades, but the divide between the classes is still getting larger and larger.

December 21, 2012 at 2:33 pm
(7) lewis says:

If you study labor economics you learn that in theory some people will lose their jobs. Still, for small businesses sometimes that is not possible unless the business closes (possible). What usually occurs in small businesses are management will get less pay. For larger businesses owners, they will get less pay.
The highest level management will be impacted as well. The wage increase is shared among all of the total paid. The amount able to pay for wages is a budget, along with other business expenses. The amount can be changed, even if only a little. Still, even if you were to keep the total wages paid where they were and kept all employees (despite minimum wage increases), then you could reduce management pay (as it is typically above minimum wage pay).
If you hear about businesses cutting jobs after this, just remember sometimes its a blame game, but sometimes its true. Do not believe when they say that, look at their financials. A lot of the time its that the business owner was unwilling to reduce his or management salaries at the peril of the integrity of the business or that the business was already losing money.

February 16, 2013 at 12:06 pm
(8) Harry says:

The minimum wage needs to be increased. The US is the only western country where minimum wage earners work 2 or 3 jobs to make a living wage. If the minimum wage increases to a living wage, people would be able to leave their 2nd or 3rd job which now opens up for another person which lowers unemployment. Most large US companies have oodles of money in the bank. This money is just sitting there. Not going back into the economy. A person who earns minimum wage usually spends all their money on living expenses which creates more jobs than money sitting in the bank does. It literally doesn’t pay to have half the country living around or below poverty level. The economy has never been worse because the wealth is not distributed evenly. In times when it was the economy fared far better. Money sitting in bank accounts of wealthy people and corporations does not create more jobs. If a small business owner can’t afford to pay $1 per hour more for an employee, he or she might be surprised to find that with paying employees a living wage, he or she actually might get more business because more people will be able to spend more. For the record, $1 increase x 40 hours x 52 weeks is 2,080 more per year per employee. The other added benefit, less employee turnover, which means less advertising cost, less time training new employees, more time spend with family and loved ones. Is the last one not priceless? Starbucks with 1 employee would only have to sell 3 more lattes a day to make back the increase in the employee’s earnings. Starbuck CEO Howard Schulz netted 16 million in 2011. Give him a 1 million less and we have about 800,000 baristas getting paid $1 more per hour (with a 200K allowance for payroll taxes, workers’ comp, etc).

July 18, 2013 at 12:26 am
(9) amy m says:

this is what we need. Im a single parent making 7.25 for the past 21/2 years an the retail place i work hired me an never let me know they never offered a raise. Yes we do 2 an 3 peoples jobs at times for this wage an hardly ever get a 40 hour week. ITS HARD TO PROVIDE ON THESE WAGES BUT SOME WOULD SAY GET A BETTER JOB. WHERE ARE THEY? OUT PRESIDENT HASNT HELPED THAT MATTER EITHER. BUT AT LEAST I DO WORK AN NOT DRAWING OFF THE WORKING PEOPLE!! I realize prices will probably rise on alot of things if wages do but look at gas!! An people still buy it. IM ALL FOR THIS INCREASE. IF YOUR AGANIST IT DRAW MY INCOME AN SEE IF YOU CAN MAKE ENDS MEET

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