How does minimum wage work

Minimum wages can also be one element of a policy to overcome poverty and reduce inequality, including those between men and women, by promoting the right to equal remuneration for work of equal value. Minimum wage systems should not be seen or used in isolation, but should be designed in a way to supplement and reinforce other social and employment policies.

Several types of measures can be used to tackle income and labour market inequality, including pro-employment policies, social transfers, and creating an enabling environment for sustainable enterprises. The purpose of a minimum wage, which sets a floor, should also be distinguished from collective bargaining, which can be used to set wages above an existing floor.

Figure 1 shows a hypothetical wage distribution with a "minimum wage zone" and a "collective bargaining zone" which can be used to establish minimum standards and to set wages above an existing floor. A short history. Department of Labor.

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What Is a Minimum Wage? Understanding a Minimum Wage. Federal vs. State Minimum Wages. State vs. Municipal Minimum Wages. Minimum Wage Exceptions. History of Minimum Wage. Special Considerations. Minimum Wage Pros and Cons. Key Takeaways The minimum wage is a legally mandated price floor on hourly wages, below which non-exempt workers may not be offered or accept a job. What is the Minimum Wage?

Additional information about the minimum wage. Equal Pay Act of Public Law Equal pay provisions prohibit sex-based wage differentials between men and women employed in the same establishment who perform jobs requiring equal effort, skill, and responsibility.

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