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The Fair Labor Standards Act (FLSA) of 1938 established the hourly minimum wage rate at 25 cents for covered workers. Since then, it has been raised 22 separate times, in part to keep up with rising prices. The minimum wage is not indexed to the price level. It has been legislatively increased from time to time to make up for the loss in its real value caused by inflation. This book discusses the federal minimum wage; inflation and the effect it has on minimum wage; the effects on employment and family income of an increase of minimum-wage; and the Fair Labor Standards Act (FLSA), which is the federal legislation that establishes the minimum hourly wage that must be paid to all covered workers.
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