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The Fair Minimum Wage Act of 2007 is a US
Act of Congress An Act of Congress is a statute enacted by the United States Congress. Acts may apply only to individual entities (called private laws), or to the general public ( public laws). For a bill to become an act, the text must pass through both house ...
that amended the Fair Labor Standards Act of 1938 to gradually raise the federal
minimum wage A minimum wage is the lowest remuneration that employers can legally pay their employees—the price floor below which employees may not sell their labor. Most countries had introduced minimum wage legislation by the end of the 20th century. B ...
from $5.15 per hour to $7.25 per hour. It was signed into law on May 25, 2007 as part of the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007. The act raised the federal minimum wage in 3 increments: to $5.85 per hour 60 days after enactment (July 24, 2007), to $6.55 per hour a year later (July 24, 2008), and finally to $7.25 per hour two years later (July 24, 2009). In addition, the act provided for the
Northern Mariana Islands The Northern Mariana Islands, officially the Commonwealth of the Northern Mariana Islands (CNMI; ch, Sankattan Siha Na Islas Mariånas; cal, Commonwealth Téél Falúw kka Efáng llól Marianas), is an unincorporated territory and commonw ...
and
American Samoa American Samoa ( sm, Amerika Sāmoa, ; also ' or ') is an unincorporated territory of the United States located in the South Pacific Ocean, southeast of the island country of Samoa. Its location is centered on . It is east of the Internatio ...
to make the transition to the federal minimum wage on alternate timetables. As of 2008, 13 states already had minimum wage rates at or above $7.25 per hour. These states were therefore unaffected by the increase.


Legislative history

The act was a component of the new Democratic majority's 100-Hour Plan in the
United States House of Representatives The United States House of Representatives, often referred to as the House of Representatives, the U.S. House, or simply the House, is the lower chamber of the United States Congress, with the Senate being the upper chamber. Together they ...
. It was introduced into the House on January 5, 2007, by George Miller (D-CA) and it was passed by the House on January 10. All 233 House Democrats voted "Aye," and 82 Republicans joined them. 116 Republican representatives voted "No," and 4 representatives did not vote. President Bush advised that the bill should include tax cuts for small businesses that could be harmed by the wage increase, and on January 24, 2007, a
cloture Cloture (, also ), closure or, informally, a guillotine, is a motion or process in parliamentary procedure aimed at bringing debate to a quick end. The cloture procedure originated in the French National Assembly, from which the name is taken. ' ...
motion in the Senate failed as 43 Republican Senators (all but 5) rejected the bill without the tax cuts, opposing all 47 Democrats who were present for the vote. Once tax cuts were added to the bill, the Senate passed the amended bill 94-3 (3 Republicans opposed and 1 did not vote; 2 Democrats did not vote) on February 1, 2007. The act initially did not amend the Fair Labor Standards Act in regards to
American Samoa American Samoa ( sm, Amerika Sāmoa, ; also ' or ') is an unincorporated territory of the United States located in the South Pacific Ocean, southeast of the island country of Samoa. Its location is centered on . It is east of the Internatio ...
—its minimum wage would have continued to be set by a committee appointed by the U.S. Department of Labor until changes were made to the act. After accusations by Republican lawmakers that
Speaker of the House The speaker of a deliberative assembly, especially a legislative body, is its presiding officer, or the chair. The title was first used in 1377 in England. Usage The title was first recorded in 1377 to describe the role of Thomas de Hunger ...
Nancy Pelosi Nancy Patricia Pelosi (; ; born March 26, 1940) is an American politician who has served as Speaker of the United States House of Representatives since 2019 and previously from 2007 to 2011. She has represented in the United States House of ...
was unethical because Del Monte (parent company of StarKist Tuna which owns one of the two tuna canneries in Samoa) is based in her district, she instructed a House committee to have Samoa be included. Samoa's representative
Eni Faleomavaega Eni Fa'aua'a Hunkin Faleomavaega Jr. (; August 15, 1943 – February 22, 2017) was an American Samoan politician and attorney who served as the territory's lieutenant governor (1985-1989) and non-voting delegate to the United States House of Repr ...
noted that the territory has not been subject to the mainland minimum wage and said, "...the global tuna industry is so competitive that it is no longer possible for the federal government to demand mainland minimum wage rates for American Samoa without causing the collapse of our economy...".


Final passage

The minimum wage was passed by the House and the Senate on May 24, 2007 as part of HR 2206, the supplemental aid to the
Iraq War {{Infobox military conflict , conflict = Iraq War {{Nobold, {{lang, ar, حرب العراق (Arabic) {{Nobold, {{lang, ku, شەڕی عێراق (Kurdish languages, Kurdish) , partof = the Iraq conflict (2003–present), I ...
. As part of the deal, $257 million worth of tax breaks were given to small business over a 10-year period to offset the wage increase. The bill was thus ultimately enacted as a rider to the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007. President George W. Bush signed the bill on the next day.


Proposed amendments

* The bill , To amend Public Law 93–435 with respect to the Northern Mariana Islands, providing parity with Guam, the Virgin Islands, and American Samoa (S. 256; 113th Congress), is a bill that was introduced into the
113th United States Congress The 113th United States Congress was a meeting of the legislative branch of the United States federal government, from January 3, 2013, to January 3, 2015, during the fifth and sixth years of Barack Obama's presidency. It was composed of the ...
. S. 256 would amend the Fair Minimum Wage Act to provide for no Commonwealth of the
Northern Mariana Islands The Northern Mariana Islands, officially the Commonwealth of the Northern Mariana Islands (CNMI; ch, Sankattan Siha Na Islas Mariånas; cal, Commonwealth Téél Falúw kka Efáng llól Marianas), is an unincorporated territory and commonw ...
minimum wage increases in 2013 and 2015.


Omissions

The minimum wage increase did not change the tip credit for tipped employees. Originally, it was automatically increased by being pegged to a percentage of the regular minimum wage. However, that changed during the 1990s. The federal tip credit, therefore, remains at $2.13. However, as even tipped employees are subject to the higher of State or Federal wage by law tipped staff effectively benefit from the minimum wage increase just the same.


See also

* Minimum wage in the United States


References

* : Fair Minimum Wage Act of 2007
House Vote Roll Call
Accessed January 13, 2007
Senate Vote Roll Call - Cloture Motion
Accessed January 24, 2007
Senate Vote Roll Call
Accessed February 1, 2007

Accessed January 14, 2007


Notes


External links



on WashingtonWatch.com {{DEFAULTSORT:Fair Minimum Wage Act Of 2007 Acts of the 110th United States Congress Minimum wage law United States federal labor legislation United States federal legislation articles without infoboxes 2007 in labor relations Riders to United States federal appropriations legislation