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Minimum wage rates are determined by factors such as poverty threshold, prevailing wage rates as determined by the Labor Force Survey, and socio-economic indicators (i.e. inflation, employment figures, Gross Regional Domestic Product, among others), which insures better workers protection.
The federal minimum wage is regulated by the Fair Labor Standards Act (FLSA) and enforced by the U.S. Department of Labor. Although the federal minimum wage rate is subject to change, it has not increased since 2009. The current federal minimum wage is $7.25 per hour.
Minimum wage rates are determined by factors such as poverty threshold, prevailing wage rates as determined by the Labor Force Survey, and socio-economic indicators (i.e. inflation, employment figures, Gross Regional Domestic Product, among others), which insures better workers protection.
The minimum wage in the United States is set by US labor law and a range of state and local laws. Employers generally have to pay workers the highest minimum wage prescribed by federal, state, and local law. Since July 24, 2009, the federal minimum wage is $7.25 per hour.
Minimum wage in Canada. Under the Canadian Constitution, the responsibility for enacting and enforcing labour laws, including the minimum wage, rests with the ten provinces as well as the three territories which have been granted this power by federal legislation.
If a state has no minimum wage law or its minimum wage is lower than the federal law, workers are entitled to the federal wage. If a state's minimum wage is higher than the federal one, workers are entitled to the state-specific wage. Higher minimum wages are most common in states with higher costs of living.
Market Theory of Wage Determination. Classical economists argue that wagesthe price of laborare determined (like all prices) by supply and demand. They call this the market theory of wage determination. The most basic of these is the number of workers available (supply) and the number of workers needed (demand).
The rate of pay for a specific job, Determined by 4 factors: Human capital, working conditions, discrimination, and government actions. The lowest legal wage an employer can pay for an hour of work. This is considered a price floor for labor.
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