History & Minimum Wage
Federal minimum wage has been debated among political authorities since it was first established in 1938 under the Fair Labor Standards Act. Minimum wage has increased over time, and several changes have been made over the past century to extend coverage.
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Beginnings
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Originally, from 1938 until 1961, minimum wage covered only those who engaged in or produced goods for interstate commerce.
Initial Raises
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On October 24, 1938, minimum wage was set at $0.25, and was raised for the first time on October 24, 1939, to $0.30. It was not raised again until the same day in 1945, when it was set to $0.40.
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1961 Amendments
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In 1961, the new Amendments extended coverage to those who were employed in retail, service, local transit, construction and gas station service. The employees covered under the 1938 Act had a slightly higher minimum wage than those under the 1961 Amendments.
1966 Amendments
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In 1966, amendments extended coverage of a $1.00 minimum wage to government employees of hospitals, nursing homes, schools, and large hotels, motels, restaurants and farms. At this time, the wage for those under the '38 and '61 Amendments minimum wage was $1.40.
Subsequent Changes
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Later amendments provided coverage to the remaining government, retail, service and domestic employees who were not yet protected.
Through the Decades
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Federal minimum wage throughout the 1970s was in the $2 to $3 range; the $3 to $4 range in the 1980s; the $4 to $5 range in the 1990s, and jumped to the $7 range at the turn of the 21st century.
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