The purpose and impact of minimum wage in New York

On Behalf of | Mar 14, 2022 | Wages & Hours

The minimum wage is a topic of hot debate in New York today. Many people believe that the minimum wage should be raised, while others think it should be abolished. But what is the purpose of minimum wage? And what impact has it had on American history? Keep reading to find out more.

History and purpose of minimum wage

The federal government did not establish a national minimum wage until 1938 when it passed the Fair Labor Standards Act. These laws were designed to protect workers from being exploited by businesses and ensure that they were paid a fair wage for their work. During that time, companies would reduce salaries while increasing working hours. So, Franklin D. Roosevelt set the minimum hourly wage at 25 cents and also established other important worker protections, such as overtime pay and child labor laws.

Currently, the minimum wage in New York ranges from $9.70 per hour to $15.00, depending on the number of employees at a workstation and location. However, there are debates to push it above $15.00 regardless of the number of workers, and the city one resides.

What’s the impact of minimum wage?

Overall, it has been positive. Minimum wages have helped reduce poverty and inequality, as well as boost the economy. But, some people oppose the continued increase of minimum wage, saying that it is harmful to job opportunities.
When employers exploit workers’ minimum wage right

There exists a lot of wage and hour issues in New York. Some employers pay workers less or ask them to stay overtime without compensating them. This is illegal, and if it ever happens to you, you should report it to the Department of Labor. If you don’t know how to navigate the process to getting justice, you can consider consulting with a lawyer or someone that’s done it before.

Every worker in New York has a right to minimum wage. Make sure you know the laws concerning them to avoid exploitation.