Don't Believe Everything You Read -- The WSJ gets the FLSA Minimum Wage Wrong!
The federal minimum wage provisions are contained in the Fair Labor Standards Act (“FLSA”). The federal minimum wage currently is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. Some state laws provide greater employee protections; employers must comply with both. And those state laws are often heading higher in 2023. But the FLSA federal minimum wage is standing pat at $7.25 per hour — the same rate since 2009.
That is why I almost fell out of my seat this morning over breakfast while reading the Wall Street Journal (“WSJ”) The national newspaper of business record was covering the increase in the minimum compensation paid by Walmart, which is raising its starting wage to $14.00 an hour. In section B, page 1 of the paper today, Wednesday, January 25, 2023, the WSJ announced that “The federal minimum wage is set to increase to $9.50 an hour on July 1, from $7.25 an hour.” Holy cow – that is big news, I thought. How did I miss that?
Well, due to the wonders of Google, which is also in the news today (for antitrust issues in advertising), I was able to figure out that I haven’t missed anything. The WSJ stands alone for creative writing. And given that the WSJ editorial page has railed against minimum wage increases for generations, it sure is a whopper of a tall tale. No Mr. Murdoch, the federal minimum is set to remain at $7.25 come next July. Maybe you need to hire some more editors and fact checkers.
I suppose the confusion at the WSJ comes from Googling the FLSA increases for 2023 and getting taken to a U.S. Department of Labor chart on state law increases mentioning a $9.50 minimum wage. But that is a change in a state minimum wage, not the FLSA. As we blogged just last week, many state minimum wages are set for increases in 2023. See https://www.awrcounsel.com/blog/2023/1/11/beware-state-minimum-wage-increases-sometimes-exceed-the-sca-rates-and-the-contractor-minimum-wage. And so are the two special government Contractor Minimum Wages set forth by Executive Orders. But that is different than the FLSA.