The federal minimum wage has basically become an outdated relic: It last went up to $7.25 on July 24, 2009 - 15 years ago. Though very few people actually earn $7.25 an hour or less, the federal standard has ripple effects for all hourly workers - helping to keep pay low for millions.
In inflation-adjusted terms, the federal minimum wage is worth less now than at any time since 1949. The number of workers earning $7.25 or less fell by nearly half over the past four years, to 869,000 in 2023 from 1.6 million in 2019.
Do we even need a federal minimum wage? Yes, says Ben Zipperer, an economist at the Economic Policy Institute. About 17 million people are earning less than $15 an hour. Raising the wage floor to $15 would give them a pay boost.
If the federal minimum wage was raised, women and people of color would see the largest wage increases. Zipperer says, 'By not raising the minimum wage we are keeping their wages low.'
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