Minimum Wage

States should continue to press for stronger state wage protections for workers above and beyond the standards established under the federal Fair Labor Standards Act.  Efforts to raise state minimum wage rates are crucial for improving the lives of working families, especially in today’s economic climate.  In many low-wage sectors, the minimum wage effectively sets pay scales, making a strong minimum wage key to the economic security of millions of workers and their families.  In the current recession, with job losses hitting higher-wage occupations like construction and manufacturing substantially more than lower-wage occupations like health care and child care, families increasingly are relying on lower-wage occupations to make ends meet.  A strong minimum wage also will help to restore the consumer demand needed to sustain a meaningful economic recovery, as working families spend their higher wages at local businesses.  The Economic Policy Institute estimates that last year’s modest increase in the minimum wage generated $5.5 billion in new consumer spending.  Boosting the minimum wage is one of the best strategies for stimulating local economies without further straining state budgets.

States may also want to consider strengthening the enforcement provisions of state minimum wage statutes. More effective enforcement provisions – for example, increasing the liquidated damages employers must pay for violations of the minimum wage. 

Continue to not allow employers to pay tipped employees less than the minimum wage. (A.K.A – Tip Penalty)  States have found that a strong tipped worker minimum wage raises living standards for this growing workforce without hurting business growth. 

Strengthen protections against ‘tip stealing’ to ensure managers or employers do not skim off a portion of workers’ tips.