Minimum Wage 2014

In: Social Issues

Submitted By jiloa
Words 4144
Pages 17
HRM Application Paper Coy, Peter. “How Much Am I Worth? - The Case for a $10.10 Minimum Wage.” Bloomberg Businessweek. Feb 2014: 10-13. Print. The Cost-Of-Living in Hawaii and New York are among the highest. Yet, in both states the minimum wage is set at $7.25. In his January 2014 State of the Union address, President Obama requested to raise a new federal minimum wage of $10.10 an hour. This movement has progressed within the past couple of weeks since its publication in February 2014. In the following pages, I will attempt to update and fill in the gaps where the article has left off. How would you like a 40% increase in your payroll? I bet that sounds like a great idea! How about if you and your fellow coworker’s all received a 40% raise? Even better right? Now, what if that 40% increase went through with the entire nation? Although raising the minimum wage would not increase everyone’s wage, this is where the controversy starts. Set in 1938, the Fair Labor Standards Act, or FLSA, is the fundamental compensation law in the United States. It is the federal law that establishes a minimum wage and limits the number of hours that may be worked in a standard week. It defines two categories of employees, the exempt employees and the non-exempt employees. The exempt employees are not allowed over-time pay, and non-exempt employees who are allowed overtime. The non-exempt employees are highly effected through this issue of raising minimum wage.

Non-exempt employees are given the benefit of overtime pay, which the FLSA requires to be paid at one and a half times the standard wage for each hour they work over 40 hours a week. At $7.25, the hourly over-time pay would be at $10.88. If the new wage was introduced at $10.10, this would make new over-time pay be at $15.15! Raising the minimum wage classifies this as an HR Environmental Challenge. These are forces external to…...

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