The Minimum Wage Act of 2007. What shall it look like? Hopefully, it will be a comprehensive bill that guarantees that a 40 hour work week will at least equate to the ceiling of the poverty level, and be adjusted forever more based on the poverty level and the expected consumer price index. It is time to get this issue of fairness out of politics and safe from poison pills. Caveat - I am equating poverty level to a living wage, which I agree may not be so.
For example, if the poverty level is projected to equate to $8/hr by the end of the year, and the expected consumer price index (CPI) for the new year is 3%, the minimum wage for the coming year would be $8.24/hr ($8 * 1.03). At the end of this new year, the poverty level actually came to be $8.20. Expected CPI for new year is 2%, making the minimum wage for the next year $8.36 ($8.20 * 1.02). Now, of course, that would equate to an increase of about 1.5% ((8.36 - 8.24)/8.24), but the worker was, in a sense, "overpaid". There should not be any adjusters to make up for any differences in the expected CPI vs. the actual CPI in the minimum wage. Such differences would be handled by adjusting the Earned Income Tax Credit.
I actually think that is the easy part of this legislation. Who gets it? Who can be exempted? That's where the battle begins. Republicans and the DLCers are going to try to protect business and special interests, but they don't need protecting, nor do they deserve it. Our legislators must get the message that the government is for the people, not the corporations, which hopefully will be addressed in lobbying, campaign finance, and election reform.
Should there be a lower wage for minors? I think that may be reasonable, but at what rate? 60% of the minimum wage which is about what it is in the UK? 80%? 50%? Emancipated minors would be required to be paid the full minimum wage.
How about family members in the employ of the family business? There are rules governing corporations having to pay compensation at a reasonable rate (since many tried to avoid paying FICA taxes by not taking salary), and this should be the benchmark for the minimum wage. So wives and husbands in the employ of a family business must be paid the minimum wage, but if they hire their minor children they would at least have to pay them according to the minor minimum wage provisions.
Should any business sectors be exempted or have a sub-minimum? I think the current law regarding workers that also work for tips are sufficient, which is approximately 40% of the minimum wage. BUT, I would like to change it. Employer must pay the minimum wage, but the employer COULD also require the worker to have deducted a similar percentage (60% of the minimum wage) as a payment for access. However, worker shall not ever fall below the minimum wage if tips are insufficient, similar to current law. Remember - I say COULD. I think this could be force more competition for excellent service workers and improve service, especially considering the demanding consumer society we live in.
Now, on to the Maximum Wage Act of 2007.........