Minimum Wage Increased

July 2007

On May 24, Congress passed the Iraq Supplemental, which contained an increase in the federal minimum wage. This is great news as our lobbying efforts paid off! 

The increase went into effect on July 24, and wages will increase incrementally over two years to a new minimum of $7.25. Already, Senator Edward Kennedy (D-MA) is proposing to write new minimum wage legislation indexing wages to inflation.  NETWORK is thrilled to have such an important victory for our nation’s working families as an important step toward a livable wage for all.

In accordance with Catholic social justice tradition, NETWORK believes that people who work fulltime have the right to earn enough to adequately support themselves and their families. Fulltime workers who provide security, clean hotels, wash dishes and haul supplies should not be forced to rely on charity or government assistance to live in dignity.

Background

The federal minimum wage had been $5.15 per hour since 1997 – even as inflation has dropped buying power by twenty percent. A family of three with one member working full time at the minimum wage lived below the poverty threshold. Twenty-seven states have increased their state minimum wage, most having added a cost-of-living-increase.

The new legislation will provide the first minimum wage increase in ten years. During this same period, Congressional salaries grew by $28,500, and the average salary of CEOs of S&P 500 companies rose by over 400% to $14 million per year.

NETWORK is part of the Living Wage Campaign of Let Justice Roll, Faith and Community Voices Against Poverty.