Fair Minimum Wage Act of 2007

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The Fair Minimum Wage Act of 2007 (HR 2) is legislation that amends the Fair Labor Standards Act of 1938 and gradually raises the federal minimum wage from $5.15 per hour to $7.25 per hour. The act raises the federal minimum wage in 3 increments: to $5.85 per hour 60 days after enactment, to $6.55 per hour 12 months after that, and finally to $7.25 per hour 12 months after that. It transitions the Northern Mariana Islands to the minimum wage on an alternate timetable. The act does not amend the Fair Labor Standards Act in regards to American Samoa—its minimum wage would continue to be set by a committee appointed by the United States Department of Labor if enacted without future revision.

[edit] Legislative history

The act is a component of the new Democratic majority's 100-Hour Plan in the United States House of Representatives. It was introduced into the House on January 5, 2007, by George Miller (D-CA) and it was passed by the House on January 10. All 233 House Democrats voted "Aye," and 82 Republicans joined them. 116 Republican representatives voted "No," and 4 representatives did not vote. The bill still needs to be signed by President George W. Bush in order to become law. If legislation is vetoed by the president, Congress can attempt to override the veto. George W. Bush advised that the bill should include tax cuts for small businesses that could be harmed by the wage increase. However, on January 24, 2007, a cloture motion in the Senate failed as 43 Republican Senators rejected the bill without the tax cuts. Once tax cuts were added to the bill, the Senate passed the amended bill 94-3 (3 Republicans opposed and 1 did not vote; 2 Democrats did not vote) on February 1, 2007.