b'LEGISLATIVE REPORT:Congress Mulls RAISING LEGISLATIVEFEDERAL MINIMUM WAGEED WELCH // PVA LEGISLATIVE DIRECTORT hereisaconsiderablepushtoyears ago. Since the inception of the federalto the $7.25 fiIf the tips fall short, thegure. enactlegislationtoraisethefederalminimum wage in 1938, there has never been aemployer is responsible for ensuring that total minimum wage over time to $15 perperiod of this length during which it has stayedcompensation averages $7.25 an hour.hour.President Biden and many (but not all)the same.CongressionalDemocratshaveendorsedtheAnotherexceptiontothenormalfederal idea.The mantra Fight for $15 is frequentlyminimumwage(althoughlikelylittleused invoked.Proponents point to a widening gapThe politicaltoday)istheYouthMinimumWage.Ifa in incomes that separates wealthy and less-well- landscape for raisingworkers age is 19 or lower, the employer can offcitizens.Despite this, a $15 per hour federalpayaminimumwageof$4.25anhourfor minimum wage is unlikely to happen anytimethe federal minimumthe fi rst 90 calendar days after the employee is soon. wage is bleak forhired.Also, with certifi cation from the U.S. DepartmentofLabor,anemployercanpay The federal Fair Labor Standards Act (FLSA)achieving a $15 an houraSubminimumWageof$6.16(85%ofthe establishesthefederalminimumwageforfi typicalfederalminimumwage)toaworkergure over the next most covered employees (not all workers arewho is a full-time student employed in a retail covered).The federal law sets a fl oor; if a statefi or service establishment. ve years is daunting.wishes, it can establish a minimum wage higher than the federal requirement. In some places,In the current Congress, the Raise the Wage Act a local jurisdiction (Chicago or New York City,TheFLSAestablishesanalternativeregimeof 2021 would increase the federal minimum forexample)hasitsownhigherminimumforaworkerwhocustomarilyreceivestips.wage from $7.25 to $15 an hour. The increase wage. Its called the Employer Tip Credit.In lieuwould take place gradually over a period of fi ve ofpayingaminimumwageof$7.25anyears.Afterwards, the minimum wage would The current federal minimum wage for mosthour,anemployercanpaythelesserfi be indexed for infl ation, thereby doing awaygure covered workers is $7.25 an hour.This fi gureof $2.13, provided that the workers tips arewiththeneedforCongresstoenactfuture wentintoeff ectinJuly2009,almost12sufficienttobringaveragecompensationuplegislationtoadjustthefederalminimum wage.Over the fi ve years, the minimum wage would rise in annual steps to $9.50, $11.00, $12.50,$14.00,andfi $15.00anhour. nally The bill would also over time do away with the Is ElectricEmployerTipCredit,theYouthMinimum Right ForWage, and the Subminimum Wage.Thereare29states,plustheDistrictof You? ColumbiaandtheU.S.VirginIslands,that have their own minimum wages higher than $7.25 an hour.Only seven of them (California, Connecticut, DC, Florida, Illinois, Maryland, Massachusetts), as well as New York City, have a minimum wage now or within fi ve years that is$15anhour,althoughseveralotherswill eventually reach this fi gure because their state minimum wage is indexed for infl ation. Lets talk about it Ofthe21statesandterritoriesthathavea minimumwagenohigherthan$7.25an Torqeedo Inc. T +1 (815) 444 8806 hour, several are jurisdictions in which many 171 Erick Street, Unit A - 1 usa@torqeedo.comCrystal Lake, IL 60014 www.torqeedo.comLEGISLATIVE REPORT 24 FOGHORN'