Federal Minimum Wage: History, Current Rate, and Economic Effects

This report examines the federal minimum wage under the Fair Labor Standards Act, including its history from the initial rate of $0.25 per hour in 1938 to the current rate of $7.25 per hour, which has been in effect since 2009. It compares the federal minimum wage to state and local minimum wage laws.

The report discusses the economic effects of minimum wage increases, including research on employment, prices, poverty, and income distribution. It presents data on the characteristics of minimum wage workers and the purchasing power of the minimum wage over time.

Congressional considerations include proposals to raise the federal minimum wage to $15 per hour or higher, index it to inflation, eliminate the tipped minimum wage, and address the impact on small businesses, rural areas, and different sectors of the economy.