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ARTICLE · 08 JULY 2013

Value Of Increasing Minimum Wage Debated At Senate Hearing

Littler Mendelson
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Experts disagreed about the effects of a federal minimum wage increase during a hearing before the Senate Committee on Health, Education, Labor and Pensions on Tuesday.

United StatesEmployment and HR
Littler Mendelson, P.C.
Littler Mendelson, P.C.
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Experts disagreed about the effects of a federal minimum wage increase during a hearing before the Senate Committee on Health, Education, Labor and Pensions (HELP) on Tuesday. During the hearing held to coincide with the 75th anniversary of the enactment of the Fair Labor Standards Act (FLSA), Chairman Tom Harkin (D-IA) urged the consideration of a bill he introduced earlier this year that would raise the minimum federal hourly rate from $7.25 to $10.10, in $.95 increments, over a three-year period. After three years, the Fair Minimum Wage Act of 2013 (H.R. 1010; S. 460) would tie any increases in the minimum wage to cost of living adjustments. The legislation would also increase the hourly wage rate for tipped workers from $2.13 to $3.00 during the first year, and then increase this base amount by either $.95 or an amount necessary to raise the rate to 70% of the minimum wage, whichever is less.

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