On Tuesday many big cities saw thousands of low-wage workers taking to the streets, protesting in favor of a $15 minimum wage. Union activists, politicians, and church members joined the nationwide demonstrations and almost 200 people were arrested across the U.S.

Workers joined the cause in airports, travel hubs, and highways by walking off their jobs or blocking traffic. About 500 employees at O’Hare International Airport in Chicago took part in a strike, alleging unfair labor practices. Hundreds of people chanted slogans outside of the terminals while police officers had to put up gates to make room for travelers to walk past. “We’re not asking for special treatment, we’re asking for decent treatment. We’re asking for decent wages,” said Kisha Rivera, an airplane cabin cleaner at O’Hare.

Thousands of people planned to walk out from their jobs at different McDonald’s restaurants, according to organizers, and one of the chain’s restaurants in St Louis had its drive-through blocked by people for half an hour. A state senator in Massachusetts who sat down with protesters in the middle of a street in Cambridge was arrested. In North Carolina a reverend was arrested, and in Manhattan four local and state officials were arrested as well, after 200 protesters blocked traffic in the Financial District. By Wednesday morning, arrests were up to 26 in New York City, 36 in Cambridge, Massachusetts, 39 in Detroit, and 40 in Los Angeles.

#Durham police have arrested NAACP NC President Rev. William Barber II #Fightfor15 pic.twitter.com/lPN0KRpOHz

— Derrick Lewis (@DerrickQLewis) November 29, 2016

We’re here and we can’t be moved! #Fightfor15 pic.twitter.com/0CMJScioco

— ATLRaiseUp (@ATLRaiseUp) November 29, 2016

Whether or not to raise the minimum wage is always a hot political topic. Liberal think tank Economic Policy Institute says that raising the minimum wage from the current $7.25 per hour to $12 per hour would affect 35 million workers across the nation and help them get off government assistant programs. But conservative organization Employment Policies Institute argues that the raised costs of a higher minimum wage would result in fewer jobs and the closure of businesses.

President-elect Donald Trump has not been very clear on his stance on the minimum wage. At a Fox Business debate last year he said that wages are too high, but later denied having said that, and claimed he only meant that there’s no need to raise the minimum wage. And then this summer he said at a press conference that the federal “minimum wage has to go up” to at least $10, but only a few months earlier he said it should be up to each state to decide. At this point it’s unclear if he’s made up his mind on minimum wage policy.

If someone in America works 40 hours a week, that person should not be living in poverty. #Fightfor15

— Bernie Sanders (@SenSanders) November 29, 2016

Politicians among 26 arrested this morning in Zuccotti Park #Fightfor15 protest, NYPD says: https://t.co/8pEoK3S2KY pic.twitter.com/di1Se39JH5

— DNAinfo New York (@DNAinfoNY) November 29, 2016

The main organizer behind the nationwide protests was the Fight for $15 movement, which is supported by many labor unions. Organizers said that they wanted to draw attention to more areas than just traditional low-wage jobs like fast-food restaurants, by focusing on all kinds of working class Americans. The tactic of protesting at places like airports rather than outside of restaurants, and trying to appeal to people in other fields, seemed to be successful. Workers from childcare facilities, individuals who work in healthcare, and even Uber drivers joined the cause. The question is whether Trump (and other politicians) will listen.

Emma Von Zeipel

Emma Von Zeipel is a staff writer at Law Street Media. She is originally from one of the islands of Stockholm, Sweden. After working for Democratic Voice of Burma in Thailand, she ended up in New York City. She has a BA in journalism from Stockholm University and is passionate about human rights, good books, horses, and European chocolate. Contact Emma at EVonZeipel@LawStreetMedia.com.

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The minimum wage was first created to ensure that workers are protected from being underpaid for their work; however, given that national and local costs of living have varied over time, whether or not the minimum wage amounts are fair has been the main pillar of the  national debate for some time. Read on to learn about the minimum wage and all of the controversies and debates surrounding it.

Current Minimum Wage Laws

The Fair Minimum Wage Act of 2007 is a law passed by Congress that requires employees to be paid at least $7.25 per hour. The act took effect in 2009 as an amendment to the Fair Labor Standards Act. This law only applies to jobs that are under the purview of the Fair Labor Standards Act. Tipped workers may only be paid less than $7.25 an hour if their hourly wages plus tips match or exceed $7.25.

The Fair Labor Standards Act is a federal law that Congress passed pursuant to the Commerce Clause of the Constitution. Federal laws passed under that power are only effective if they pertain to an area that affects commerce between multiple states. Therefore, the Fair Labor Standards Act and the Fair Minimum Wage Act only regulate wages in businesses that are involved in interstate commerce. Businesses that are not sufficiently involved in interstate commerce are not regulated by the federal law but may still be regulated by state or local minimum wage laws. If there are state or local minimum wage laws in effect in the area a (non-interstate commercial) business operates then those laws determine the minimum wage employees of such a business can be paid.

State minimum wage laws are very variable.

The map below represents the minimum wage in a number of states. Green indicates a state minimum wage that is higher than federal minimum wage, yellow shows states with no minimum wage laws, blue states have the same minimum wage as the federal minimum wage, and red states have minimum wage laws lower than the federal minimum wage.

Map of minimum wage variations by state, courtesy of the U.S. Department of Labor via Wikipedia.

According to the Department of Labor, the laws are interpreted as follows:

Federal minimum wage law supersedes state minimum wage laws where the federal minimum wage is greater than the state minimum wage. In those states where the state minimum wage is greater than the federal minimum wage, the state minimum wage prevails.

So why do we still have separate federal and state minimum wage laws? One reason is, of course, politics. The states that have lower minimum wage laws keep them on the books in part to protest what they see as too high of a federal minimum wage. There’s also a more practical application: there are certain workers, such as seasonal workers or those on small farms, who are exempt from the federal laws. In some cases, the state laws may still offer some parameters for those workers.

What are arguments for keeping the federal minimum wage as is?

Supporters of the current federal minimum wage argue that raising the minimum wage will diminish the job market in an economy that is already suffering. They argue that raising the minimum wage to benefit the poor is a shortsighted strategy. Since a majority of the poor (60 percent) are unemployed, raising the minimum wage only makes it more difficult for them to find jobs because it raises the value that they have to demonstrate in order to justify being hired. Moreover, most of the people receiving minimum wage pay are above the nation’s median income so most of the funds workers receive from a higher minimum wage won’t go to the impoverished.

Supporters of keeping the minimum wage law where it is also worry that the costs of a higher minimum wage would be passed on to the consumers, who may be struggling themselves. They reason that the money has to come from somewhere, and in many cases it would come from an increase in the price of goods. In general, it would make it more expensive for employers to hire employees, and have negative ramifications throughout many parts of the economy.

Another argument against raising the minimum wage stems from an idea about the purpose of the minimum wage. Minimum wage jobs are often viewed as “stepping stones” for young people, or those looking to get back on their feet–not jobs for those who need to raise families or be permanently employed in that particular place of business. Those who subscribe to this argument tend to worry that with a higher minimum wage, these jobs become permanent paths rather than just stepping stones, and younger people will no longer be able to get their foot in the door.

What are arguments for increasing the minimum wage?

Those who argue in favor of increasing the current federal minimum wage argue that it does not even pay enough to keep a family of three above the poverty line. The average cost of living has increased by leaps and bounds, especially in larger cities. The minimum wage has not increased proportionately with inflation or the pay of the average worker. Today, the minimum wage is insufficient to keep a full-time working parent and one child out of poverty. At a bare minimum the federal minimum wage should be enough to keep a working parent and her child above the poverty line. Along the same lines, supporters of increasing the minimum wage point out that because those who work minimum wage jobs have such a difficult time making ends meet, many of them have to get some sort of government assistance, which is also a big problem for the economy.

That is why the Obama Administration is advocating for legislation to raise the federal minimum wage to $10.10 an hour. This change would raise America’s GDP, and reduce income disparities between several population demographics.

Conclusion

The minimum wage, and its many derivations across the states, will always be a contentious and politicized issue. The actual economic implications of raising or lowering the minimum wage are difficult to glean, and the arguments are sharp. That being said, the minimum wage debate is far from over.

Resources

Primary 

US Senate: Fair Minimum Wage Act of 2007

Department of Labor: Minimum Wage

Department of Labor: History of Changes to the Minimum Wage Law

Department of Labor: Minimum Wage Laws in the States

Additional

Forbes: Why Raising the Minimum Wage Kills Jobs

Washington Post: Economists Agree: Raising the Minimum Wage Reduces Poverty

The New York Times: Raise That Wage

The White House: Remarks by the President in the State of the Union Address

Atlantic: Minimum Wage Was Once Enough to Keep a Family of Three Out of Poverty

Economic Policy Institute: Raising the Federal Minimum Wage to $10.10 Would Give Working Families, and the Overall Economy, a Much-Needed Boost

CNN: Raising Minimum Wage Won’t Lower Poverty

America’s Best Companies: Five Important Exceptions to Know Regarding Minimum Wage

The New York Times: Raising Minimum Wage Would Ease Income Gap but Carries Political Risks

Entrepreneur: Listen to Small Business: Don’t Increase the Minimum Wage

Deseret News: In Our Opinion: Don’t Raise the Minimum Wage

John Gomis

John Gomis earned a Juris Doctor from Brooklyn Law School in June 2014 and lives in New York City. Contact John at staff@LawStreetMedia.com.

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Stop me if you’ve heard this one before. Low-wage workers are pissed that their multimillion dollar employer pays them next to nothing while spending exorbitantly elsewhere and mooching from the same taxpayers they’re screwing. No I’m not talking about the cashiers at McDonald’s or Wal-Mart or the millions of other employees working at or below minimum wage, I’m talking about the cheering squad for the Cincinnati Bengals. Cheerleaders?! Getting paid?! I know, I know. Next thing you know, gays will want to marry and immigrant soldiers will request a path to citizenship. But these ladies actually seem to have a fair gripe, and their story may be instructive on which direction low-wage American workers are headed.

On February 11, 2014, Cincinnati Ben-Gal cheerleader Alexa Brenneman filed a class-action suit against the Bengals organization on behalf of her cheering squad, alleging that her employer violated federal and state wage laws by paying them less than the minimum wage. In her complaint (which can be read here), Ms. Brenneman argues that she made roughly $855 (or $2.85 an hour) for her work as a Ben-Gal cheerleader in 2013. That work included activities such as required practice, charity appearances, makeup clinics, and photo shoots. Ms. Brenneman also claims Ben-Gal cheerleaders received nothing for the time they spent modeling for and promoting the cheerleader calendar, and they were routinely condescended by Bengals management. The statement below, seemingly authored by Big Brother, is from the organization’s Ben-Gal Rules:

Insubordination: Webster defines this word as “not submitting to authority; disobedient.” Syn. Rebellious, mutinous, defiant. Insubordination to even the slightest degree IS ABSOLUTELY NOT TOLERATED!!! You will be benched or dismissed!!!

Authority: ABSOLUTELY NO ARGUING OR QUESTIONING THE PERSON IN AUTHORITY!!!

Ms. Brenneman’s argument isn’t one of a kind. Less than a month earlier, a Raiderettes cheerleader sued the Oakland Raiders for similar wage violations. On a more temporary basis, unpaid interns and volunteers have begun organizing their class-action wage suits against movie studios, publishing moguls, and Major League Baseball.  So why all the hostility?

Beyond the inability to make ends meet, the unpaid and low paid could be upset with the massive pay inequality occurring throughout the country. Labor is becoming cheaper and more dispensable, yet ceo pay is continuing to grow, and is often due to the good fortune and political maneuvering that is not available to the average American.

The Cincinnati Bengals may exemplify this point. The Bengals are owned by Mike Brown, the prodigal son of Bengals founder and NFL mogul, Paul Brown. Mike Brown has owned the team since 1991 when he inherited responsibility upon his father’s passing. Since then, he has widely been criticized, often for poor hiring decisions and for refusing to cede management control of player personnel despite amassing one of the worst records in football during his tenure as owner.

Mike Brown is also despised for conning Hamilton County, Ohio into bankrolling a new stadium for his team. In 1995, Brown threatened to move his team to Baltimore if the county didn’t pay for a new stadium. His tactics worked. Brown, a Republican political donor, secured public financing for his new stadium, which would be paid for in part by increased sales and property taxes in Hamilton County. Paul Brown Stadium is still considered one of the costliest publicly financed stadiums in the country, while Mike Brown and his team continue to make millions.

Although the outrage among low-level Bengals workers may be palpable, things are unlikely to become more fair. Instead of increasing wages, employers often double down on the theory that interns and low-wage workers are expendable by eliminating their position entirely. Condé Nast has ended their internship program after they were sued for wage violations last June. In the world of cheerleading, six NFL teams have nixed their squads, and you can bet this number is likely to grow. Just as employers seek to avoid health care expenses, they seek to avoid costly litigation. So although the Ben-Gals squad may be victorious in their class-action lawsuits, professional cheerleaders as a whole may be the latest group of workers left with nothing to cheer about.

—

Andrew Blancato (@BigDogBlancato) holds a J.D. from New York Law School, and is a graduate of the University of Massachusetts, Amherst. When he’s not writing, he is either clerking at a trial court in Connecticut, or obsessing over Boston sports.

Featured image courtesy of [Chris Breeze via Wikipedia]

Andrew Blancato

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