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Topic: History
Number of pages / Number of words: 21 / 5851
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(Table 1 summarizes the history of the federal minimum wage.) Since the minimum wage is set in nominal terms, its real value declines as prices rise until Congress raises the wage floor again, creating the sawtooth pattern evident in Chart 1.

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As shown in the chart, the minimum wage fell dramatically relative to the average manufacturing wage during the 1980s, prompting one-third of the states to impose state minimum wages above the federal level...


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Over time, Congress has greatly expanded the coverage of the FLSA, and almost 90 percent of workers now must be paid at least the minimum wage. Most businesses with annual sales of less than $500,000 are exempt from the minimum wage standard.

Concerns that the wage floor would reduce employment for certain groups of workers led to the creation of "subminimum wages...


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