Tuesday, April 24, 2007

What does federal law say about a city/municipality establishing a minimum wage higher than the federal minimum?

The Fair Labor Standards Act of 1938 establishes a minimum wage in the United States which includes:
Relation to Other Laws
Sec. 18. (a) No provision of this Act or any order thereunder shall excuse noncompliance with any Federal or State law or municipal ordinance establishing a minimum wage higher than the minimum wage established under this Act and provision of this Act relating to the employment of child labor shall justify noncompliance with any Federal or State law or municipal ordinance establishing a higher standard than the standard established under this act.


The federal law that established the minimum wage in the United States specifically allows states and municipalities to establish a higher minimum wage.

The City of Santa Fe, NM has established a city-wide minimum wage of $9.50/hr. and the action was challenged in court. The Court of Appeals of the State of New Mexico approved the city-wide higher minimum wage on November 29, 2005 in the case of New Mexicans for Free Enterprise, The Santa Fe Chamber of Commerce, et al v. The City of Santa Fe.

Today higher city minimum wage ordinances have been established in San Francisco, Santa Fe, Albuquerque and Washington DC.

4 Comments:

Anonymous Tony Ledford said...

Are there people still questioning the legality of the proposed ordinance for raising the minimum wage in Greensboro? If so, I wonder what information they have that leads them to believe that this ordinance would violate some federal law?

April 24, 2007 12:19 PM  
Blogger jill williams said...

Hi Tony,
Jim Boyett, who is the co-chair of our committee, says that he has heard many people claim that the federal minimum wage laws prohibit municipalities from raising the minimum wage higher than the federal limit. In response to those comments, Jim wanted to point out that, not only does the federal law not disallow municipalities from setting higher standards, but it expressly permits it. The state law isn't so clear, at least not in NC.

April 25, 2007 7:17 AM  
Anonymous Tony Ledford said...

It makes one wonder where people get the idea that federal law prohibits a municipality from having a minimum wage higher than the federal?

Fox News and Rush Limbaugh, I guess.

Maybe this blog is helping correct some misapprehensions along these lines, Jill; I certainly hope so.

April 25, 2007 11:10 AM  
Anonymous yelper said...

There you grunions go...picking of Fox and Rush again. I'll have you know that Fox is the only network that claims to have fair and balanced news programming and Rush...well....he's right. Not only that but....and this will really piss you leftys off....Santa Claus?....HE'S COMING TO TOWN. Take that you commies.

April 25, 2007 4:56 PM  

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