In 1938, Congress (this time) finally established a national minimum wage with the Fair Labor Standards Act. It was only 25 cents, or $5.25 in today’s money, but no one ever said the minimum wage wasn’t stupid, terrible, and entirely inadequate.
7
A Roller Coaster That Only Goes Up
That might be why the federal minimum wage was raised immediately the next year to $6.39 in today’s money, then in 1945 to $6.58, then majorly in 1950 to $9.22. Yes, that’s more than it is today.
6
What Does “Federal” Mean, Anyway?
Until 1961, federal minimum wage laws only applied to businesses involved in interstate commerce, which is what the federal government had decided was their scope. That year, though, the law was expanded to cover way more employees because it turns out the federal government can be whatever we want it to be.