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Facts From EBRI
April 1998
History of the Minimum Wage
- 1938 -- The minimum wage was first enacted into law as part of the Fair Labor Standards
Act (FLSA) of 1938. The original minimum wage applied to workers engaged in interstate
commerce and the production of goods for interstate commerce. In 1938, this applied to
roughly 11.0 million workers out of a total of 54.9 million workers. The minimum wage was
set at $0.25 per hour.
- 1961 -- Amendments to the minimum wage law extend coverage primarily to employees in
large retail and service trades as well as local transit, construction, and gasoline
service station employees.
- 1966 -- Amendments to the minimum wage law extend coverage to state and local government
employees of hospitals, nursing homes, and schools and to employees of laundries, dry
cleaners, large hotels and motels, restaurants, and farms. Subsequent amendments extended
coverage to the remaining federal, state and local government employee not protected in
1966, to certain workers in retail and service trades previously exempted, and to certain
domestic workers in private household employment.
| |
Minimum |
Average |
Minimum as Percentage |
Minimum |
Average |
| |
Wage |
Wage* |
of Average |
Wage in 1997 $ |
Wage in 1997 $ |
| 1938 |
$0.25 |
$ 0.62 |
40.3% |
$2.87 |
$ 7.11 |
| 1945 |
0.40 |
1.02 |
39.2 |
3.59 |
7.32 |
| 1950 |
0.75 |
1.44 |
52.1 |
5.03 |
9.16 |
| 1956 |
1.00 |
1.95 |
51.3 |
5.94 |
9.66 |
| 1961 |
1.15 |
2.32 |
49.6 |
6.22 |
11.59 |
| 1965 |
1.25 |
2.61 |
47.9 |
6.41 |
12.54 |
| 1970 |
1.60 |
3.36 |
47.6 |
6.66 |
13.39 |
| 1975 |
2.10 |
4.83 |
43.5 |
6.31 |
13.99 |
| 1980 |
3.10 |
7.27 |
42.6 |
6.08 |
14.51 |
| 1985 |
3.35 |
9.54 |
35.1 |
5.03 |
14.33 |
| 1990 |
3.80 |
10.83 |
35.1 |
4.70 |
13.39 |
| 1995 |
4.25 |
12.35 |
34.4 |
4.51 |
13.10 |
| 1996 |
4.75 |
12.99 |
36.6 |
4.89 |
13.38 |
| 1997 |
5.15 |
13.09 |
39.3 |
5.15 |
13.09 |
| |
*Average hourly earnings for manufacturing workers.
For more information, contact Ken McDonnell, (202) 775-6342, or see EBRI's Web site at
www.ebri.org. Source: EBRI Databook on Employee Benefits, fourth edition, 1997.
4/98
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