The Texas Minimum Wage Act establishes a minimum wage for
non-exempt employees. On July 24th 2009, the minimum wage increased
to $7.25 an hour. Some 550,000 Texans, or 9.5 percent of hourly paid workers,
made the federal minimum wage of $7.25 an hour or less last year. The federal
poverty level for a family of three was $18,310 last year, which means a single parent with two children
and working for minimum wage would earn about $3,200 less than the poverty
level.
Raising the minimum wage is often a political issue.
Proponents, often labor unions and their supporters, argue that raising the
wage allows employees to earn more money and lead easier lives. In addition,
with more money coming in, individuals have more to spend, which boosts the
economy. There are at least two House bills that would increase the minimum
wage in some respect. The WAGE Act would set a base minimum wage for tipped
employees such as waiters and bartenders. If enacted this bill would raise the
minimum cash wage of such employees (excluding tips) over time from $2.13 to
$5.50 an hour. Meanwhile, the Living American Wage Act of 2011 would tie the
minimum wage level to the poverty threshold for a family of two individuals.
Both bills were introduced early in the year and seem to be stalled in committee.
The thing is that full-time workers can earn a living wage that allows them to
raise their families and pay for basic needs such as food, transportation, and
housing.
The minimum wage is supposed to be a living wage, however,
it has lost so much value over the years due to inflation that families who are
reliant on the minimum wage as their sole source of income are unable to afford
health care, food, rent, and transportation. Most families are deciding on
sharing a house or an apartment because they are always short of money every
month and many employers do not even allow their employees to work full time
because they are not required to provide benefits for their part-time workers. As
I said, I think the minimum wage should be $9.00 an hour, not $7.25 which is
equal to the price of a combo on a fast food restaurant.
A fellow classmate touched on a subject that has concerned me over the years. While there are jobs in the Austin area that do pay significantly higher than other cities such as San Antonio, Texas as a whole is paying at a minimum wage that causes a huge deficit with the standard of living. In their article, Minimum wage in Texas, dated on November 2, 2012, it was stated that the Texas Minimum Wage Act establishes a minimum wage for non-exempt employees and that back in 2009 it was increased to $7.25 an hour. My peer went on to say that this was $3,200 lower than the federal poverty level of $18,310. It is time for Texas government to address this issue and raise the minimum wage to at least match the federal poverty level. In the next part of their article, they discussed the two House bills that would increase the minimum wage. One is the Wage Act that will increase the base wage for employees who rely on tips as part of their income. The other is the Living American Wage Act of 2011 which will adjust the minimum wage to the poverty threshold for a family of two. As they mentioned, “minimum wage is supposed to be a living wage.” We all know that it’s not, especially if you have a family to support.
ReplyDeleteI have heard years ago, before the minimum wage increased to $7.25 an hour, that in order to live comfortably a person would have to make around $11 to $12 an hour. This pay rate will ensure that they will be able to pay their rent, have food, transportation, and afford any other unexpected minor expenses.
I strongly agree with the suggestion my classmate made about the minimum wage being at $9.00 an hour. Many families will be able to make their way out of poverty and not feel like they have to struggle as much. This will definitely help if they are having to start with part-time work and unable to receive health benefits. It will also help free up money from government programs that these individuals normally have to rely on to support their families. These funds can be allocated to other programs and needs around the community. Let’s hope the two House bills become enrolled bills and our Governor signs them into law.