Minimum wage is the lowest hourly wage that employers may legally pay employees. With the recent Fair Minimum Wage Act of 2007, the minimum wage has been raised from $5.15 an hour to $7.25 an hour by 2010. Nearly all states have minimum wage laws that either adhere to whatever the federal government legislates, or raise their minimum wage higher than that of the federal level. Nearly all states adhere to the federal level of minimum wage, and many more increase this precedent. States that don’t have minimum wage laws are Alabama, Louisiana, Mississippi, South Carolina, and Tennessee—by default their minimum wage is that of the federal government.
While supporters of the minimum wage argue theories of welfare economics and work incentives; it is however, the contention of this organization that minimum wage does nothing but regulate and maintain stagnant economic growth and business expansion. Minimum wage increases the demand for union workers by unemploying their low-cost, low-skilled competitors. Further, minimum wage hurts the least employable in society by effectively “pricing” them out the market, reduces profit margins of business owners and increases the price for consumers.
AWF opposes minimum wage laws because they infringe upon the employer’s right to set wages. Minimum wage laws also effectively “price out” low skilled workers from the market. Minimum wage laws decrease the need for labor and reduce profit margins for employers, thereby driving up prices for consumers.
To view your state's minimum wage, click here.