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Thursday, Aug. 27, 2020

Does the federal minimum wage apply to every job in the US economy?

William Boger, Gigafact Foundry
no

In 2019, about 1.2 million workers in the U.S. earned less than the federal minimum wage, which has been fixed at $7.25 an hour since 2007. The law exempts various kinds of workers: casual babysitters, workers with disabilities, fishermen, workers on small farms. There are specific provisions for tip- and commission-based jobs. Certain businesses with revenues below $500,000 a year are exempt, as are employees paid by salaries.

Together with 392,000 workers earning the minimum wage, those earning at the benchmark or below make up about 1.9% of all hourly workers. About 40% are under the age of 25. That figure of 1.6 million is down from 4.4 million during the worst of the recession in 2010. Twenty-nine states and the District of Columbia have set higher minimum wages.

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