This rate has gone through a series of changes that have affected the development of the FLSA. In 1938 the FLSA, as enacted by Congress, required that a certain set of employees have a minimum wage. This minimum wage was first set at $0.25, factoring in the change for inflation, which is an increase in prices and a decrease in the purchasing value of money, that would be worth $4.13 today (Murray). It is important to note that after the federal minimum wage was set in place states slowly began to form their own minimum wages individually. One example of this is Massachusetts’ minimum wage of $10 as of January 1st, 2016 raising to $11 one year later on January 1st, 2017 (Hamel). Just as well states have separate wage sets for those who work for tips as well as an hourly rate. These workers have a much lower minimum wage compared to the regular minimum wage, due to the tips making up the rest of their paycheck (Murray). Throughout history the federal minimum wage has changed, most commonly increased, and most recently has been set at $7.25 as of 2014 (Cheeseman, 454 and Murray). The federal minimum wage holds many exceptions for whom it may or may not apply to, such as, professional, executive, administrative, and highly compensated workers are not required to fall
This rate has gone through a series of changes that have affected the development of the FLSA. In 1938 the FLSA, as enacted by Congress, required that a certain set of employees have a minimum wage. This minimum wage was first set at $0.25, factoring in the change for inflation, which is an increase in prices and a decrease in the purchasing value of money, that would be worth $4.13 today (Murray). It is important to note that after the federal minimum wage was set in place states slowly began to form their own minimum wages individually. One example of this is Massachusetts’ minimum wage of $10 as of January 1st, 2016 raising to $11 one year later on January 1st, 2017 (Hamel). Just as well states have separate wage sets for those who work for tips as well as an hourly rate. These workers have a much lower minimum wage compared to the regular minimum wage, due to the tips making up the rest of their paycheck (Murray). Throughout history the federal minimum wage has changed, most commonly increased, and most recently has been set at $7.25 as of 2014 (Cheeseman, 454 and Murray). The federal minimum wage holds many exceptions for whom it may or may not apply to, such as, professional, executive, administrative, and highly compensated workers are not required to fall