What is the purpose of the National Minimum Wage Act?

The National Minimum Wage Act is a federal law that was created to ensure that workers in the United States are paid a minimum wage for their work. This law helps protect employees from employers who might try to pay their workers wages that fall below what is legally allowed. The National Minimum Wage Act was passed in 1938, as part of the Fair Labor Standards Act. Under this law, the federal minimum wage was set at 25 cents per hour. This wage was later increased to $7.25 per hour in 2009. In New Mexico, the minimum wage is higher than the federal rate. As of July 2020, the minimum wage in New Mexico is $10.50 an hour for employees who work for companies with gross annual revenue of $500,000 or more. For employers with less annual revenue, the minimum wage is $9.45 an hour. The purpose of the National Minimum Wage Act is to provide a minimum floor for wages paid to employees, ensuring that all workers in the US have some protection from employers who might try to pay them wages below the legal minimum. Additionally, the act helps protect workers from falling into a situation of poverty and enables them to receive a wage that is necessary to cover basic necessities.

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What is the purpose of the National Minimum Wage Act?

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