President Biden Proposed raising the Federal Minimum Wage to $15.00/hour as part of his $1.9 billion stimulus plan.
Americans have debated where to set the federal minimum wage for decades. President Joe Biden’s proposed stimulus plan aims to increase the federal minimum to $15 an hour, more than doubling the current wage of $7.25. Currently, wages vary by state, with some cities mandating more than double the federal minimum and other states with requirements below $7.25. Employees covered by both state and federal minimum wage laws are entitled to the higher of the two minimums.
How many people earn the federal minimum wage?
According to the Bureau of Labor Statistics (BLS) 1.6 million workers, or 1.9% of all hourly paid, non-self-employed workers, earned wages at or below the federal minimum wage in 2019. That year, 82.3 million people were paid hourly rates, making up 58.1% of all wage and salary workers in the United States.
Fewer Americans today make the federal minimum wage or less.
In 1980, when the federal minimum wage was $3.10 ($9.86 in 2019 dollars), 13% of hourly workers earned the federal minimum wage or less. Today, only 1.9% of hourly workers do. The number of federal minimum wage workers has decreased from 7.7 million in 1980 to 1.6 million in 2019. This is partly due to states establishing higher minimum wages than the federal level.