Tag: Minimum

  • Sanders Introduces Bill Requiring $60,000 Minimum Salary for All Public School Teachers

    Sanders Introduces Bill Requiring $60,000 Minimum Salary for All Public School Teachers

    Senator Bernie SandersSenator Bernie Sanders introduced legislation last Thursday requiring all public school teachers to earn at least $60,000 annually, calling America’s teacher pay crisis a “national emergency” during a Capitol Hill town hall with more than 200 educators.

    The Pay Teachers Act, co-sponsored by eight Democratic senators including Elizabeth Warren and Ed Markey, would establish the first federal mandate for teacher salaries and represents the most ambitious federal intervention in educator compensation in decades.

    “Just four hedge fund managers on Wall Street make more money in a single year than every kindergarten teacher in America combined—over 120,000 teachers,” Sanders said. “No public school teacher in America should make less than $60,000 a year.”

    The legislation comes as schools nationwide face unprecedented staffing shortages, with nearly 200,000 teaching positions either vacant or filled by underqualified educators. According to the bill’s findings, 38% of teachers nationwide earn less than $60,000 annually, with starting teachers averaging $44,530.

    Maria Gonzalez, a third-grade teacher from Arizona who testified at the town hall, said she drives for Uber on weekends and tutors after school to pay rent. 

    “My students ask why I look tired. How do I tell them their teacher can’t afford to live in the community where she teaches?”

    The crisis extends beyond low pay. Twenty-one percent of elementary and middle school teachers’ families rely on public assistance programs including Medicaid, food stamps, and the Earned Income Tax Credit, according to a University of California, Berkeley study cited in the legislation. Additionally, 44% of public school teachers quit within five years, and 17% worked multiple jobs during the 2020-2021 school year.

    The comprehensive bill would cost approximately $400 billion over five years, funded through mandatory appropriations. Beyond the $60,000 minimum salary requirement, the legislation would triple Title I funding, provide teachers with at least $1,000 annually for classroom supplies, and mandate that paraprofessionals and education support staff earn at least $45,000 annually or $30 per hour.

    States would have four years to implement the salary requirements, with extended timelines available for states demonstrating substantial financial need. The bill also includes $50 billion annually for career ladder programs allowing teachers to advance without leaving the classroom.

    The teacher shortage disproportionately affects schools serving students of color and low-income communities, which are four times more likely to employ uncertified teachers than schools with low minority enrollment, according to federal civil rights data cited in the legislation.

    James Williams, a high school mathematics teacher from North Carolina, told the town hall that his salary purchased “a decent life” 15 years ago but now forces him to choose between car repairs and classroom supplies.

    The legislation faces significant political obstacles with Republicans controlling the House. GOP lawmakers have criticized the massive federal spending, while some education policy experts question federal involvement in traditionally state and local compensation decisions.

    Major education unions endorsed the proposal. American Federation of Teachers President Randi Weingarten called it “a crucial federal investment to help sustain the teaching profession,” while National Education Association Vice President Princess Moss praised it as legislation that “invests in our students, educators, and public schools.”

    Sanders criticized recent Republican legislation that he said provides “$900 billion in tax cuts to large, profitable corporations and a $1 trillion tax cut to the top 1%” while cutting over $300 billion in education funding. The Trump administration is also withholding nearly $5.5 billion in congressionally appropriated education funding, according to Sanders and his colleagues.

    “If we can provide over a trillion dollars in tax breaks to the top 1% and large corporations, please don’t tell me that we cannot afford to make sure that every teacher in America is paid at least $60,000 a year,” Sanders said.

     

     

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  • Senate Introduces Legislation to Increase Federal Minimum Wage to $15 per Hour – CUPA-HR

    Senate Introduces Legislation to Increase Federal Minimum Wage to $15 per Hour – CUPA-HR

    by CUPA-HR | June 24, 2025

    On June 10, Senators Josh Hawley (R-MO) and Peter Welch (D-VT) introduced the Higher Wages for American Workers Act (S. 2013). The Higher Wages for American Workers Act would amend the Fair Labor Standards Act (FLSA), raising the federal minimum wage to $15 per hour and directing the secretary of labor to adjust the minimum wage annually based on inflation.

    Higher Wages for American Workers Act

    The bill proposes to increase the federal minimum wage from $7.25 to $15 per hour beginning January 1 of the first year after enactment. Each year after, the secretary of labor is directed to increase the minimum wage annually by “the percentage increase, if any, in the Consumer Price Index for Urban Wage Earners and Clerical Workers.”

    Although the federal minimum wage has not been increased since 2009, several states have increased their state minimum wage above the current $7.25 per hour. As of January 1, 2025, 30 states and the District of Columbia have minimum wage laws set above the federal level, and 10 states and the District of Columbia have a minimum wage of $15 per hour or higher. All other states must follow the minimum wage set by Congress through the FLSA.

    Looking Ahead

    While legislation has been introduced in recent years to increase the federal minimum wage, calls to increase the level to $15 per hour have mostly come from Congressional Democrats. It is therefore notable that Republican Senator Josh Hawley is leading efforts on this issue. It remains to be seen if enough Republicans in the Senate will also support this effort to give the legislation the chance to receive 60 votes to bypass the filibuster and whether House Republicans will take up similar legislation.

    CUPA-HR will keep members apprised of further developments related to federal minimum wage laws.



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  • U.S. Appeals Court Overturns $15 Minimum Wage for Federal Contractors

    U.S. Appeals Court Overturns $15 Minimum Wage for Federal Contractors

    by CUPA-HR | November 12, 2024

    On November 5, the 9th U.S. Circuit Court of Appeals reversed a lower district court’s decision to dismiss a lawsuit challenging the Biden administration’s executive order and the Department of Labor (DOL)’s final rule to increase the minimum wage for federal contractors. The ruling orders the legal challenge to proceed, which could ultimately strike down the executive order and final rule.

    In April 2021, the Biden administration published executive order 14026, which directed DOL to issue regulations to increase the minimum wage for federal contractors to $15 per hour beginning on January 30, 2022. Subsequently, in November 2021, DOL issued its final rule to implement the executive order, setting the minimum wage for federal contractors to $15 per hour on January 30, 2022, and requiring the secretary of Labor to annually review and determine the minimum wage amount beginning in January 2023.

    The executive order and final rule were challenged by five states: Arizona, Idaho, Indiana, Nebraska and South Carolina. In their suit, the states claimed that the Biden administration violated the Federal Property and Administrative Services Act (FPASA) and exceeded its authority granted under the law by imposing a wage mandate through an executive order. They also argued that DOL violated the Administrative Procedure Act (APA), which governs how federal agencies proceed through the notice-and-comment rulemaking process, when implementing the final rule. The lawsuit was originally dismissed by a federal judge in the U.S. District Court of Arizona, leading the states to appeal to the 9th Circuit.

    In the 9th Circuit’s ruling, two of the three judges on the panel sided with the states’ arguments, reversing the dismissal of the case from the lower district court. The majority opinion held that the minimum wage mandate exceeded the president’s authority under FPASA and that DOL’s final rule was subject to arbitrary-or-capricious review under the APA. As such, the circuit court sends the case back to the district court, where the federal judge will proceed with the case and issue a further ruling to uphold or strike down the executive order and final rule. For now, the order and final rule are still in place, but the future of both is uncertain. CUPA-HR will keep members apprised of any updates related to this lawsuit and further laws and regulations impacting federal contractors.

     

     



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  • Appeals Court Upholds DOL’s Authority to Use Minimum Salary Threshold to Determine Overtime Exemptions

    Appeals Court Upholds DOL’s Authority to Use Minimum Salary Threshold to Determine Overtime Exemptions

    by CUPA-HR | September 12, 2024

    On September 11, the 5th U.S. Circuit Court of Appeals issued a ruling in Mayfield v. U.S. Department of Labor that upholds DOL’s authority to implement a minimum salary threshold to determine exempt status under the Fair Labor Standards Act (FLSA) overtime pay requirements. While the ruling does not answer how other lawsuits challenging the Biden administration’s rule will be decided, the ruling is significant and could help other federal judges determine whether or not to strike down the Biden administration’s increased minimum salary thresholds.

    Background

    The case’s plaintiff, Robert Mayfield, filed a lawsuit against the Trump administration’s overtime rule in August 2022. In his lawsuit, he argued that the FLSA language on overtime exemptions only mentions a worker’s job-related duties and that implementing a salary threshold to determine exempt status exceeds DOL’s statutory authority. The Western District Court of Texas, a lower court where the lawsuit was originally filed, sided with DOL, stating that the agency has the statutory authority to implement the FLSA overtime minimum salary threshold. Mayfield appealed the decision to the 5th Circuit soon after.

    The Decision

    In its decision that sides with the Department of Labor, the 5th Circuit Court held that DOL may use a minimum salary requirement as part of its test for determining whether or not an employee qualifies as an executive, administrative and professional (EAP) employee exempt from the FLSA overtime pay requirements. Notably, the 5th Circuit Court argued that DOL does have statutory authority under the FLSA to use a salary threshold to “define and delimit the terms of exemption.”

    Though the decision allows for DOL to use a minimum salary threshold, the 5th Circuit Court did state that there is a limit to the power granted to DOL to do so. Specifically, the decision states that DOL may only use the minimum salary requirement to the extent that the salary threshold established in the regulations is a reasonable proxy for who is and who is not an EAP employee. They argued that DOL’s power to rely on proxy is not “unbounded” and that the agency “cannot enact rules that replace or swallow the meaning” of the FLSA’s terms that they seek to define.

    Looking Ahead

    Outside of the Mayfield case, there are three pending lawsuits in the Eastern District Court of Texas to challenge the Biden administration’s overtime final rule. That rule implements a two-phase approach to increasing the minimum salary threshold under the FLSA. The first increase took effect on July 1, increasing the minimum salary threshold from the current level of $684 per week ($35,568 per year) to $844 per week ($43,888 per year), and the second increase is set to take effect on January 1, 2025, increasing the minimum salary threshold again to $1,128 per week ($58,656 per year).

    The decision from the 5th Circuit does not have an immediate impact on the lawsuits challenging the Biden administration’s overtime rule, nor does it provide a definitive answer on how lower courts decide in those legal challenges. As such, the Biden administration’s July 1 salary threshold continues to be in effect,* and the second increase to the salary threshold is still set to take effect on January 1, 2025. CUPA-HR will keep members apprised of additional updates related to the FLSA overtime pay regulations.


    *A preliminary injunction to block DOL from enforcing the overtime final rule was placed for public employees in the state of Texas. Private institutions in Texas and all other institutions outside of Texas need to be in compliance with the July 1 salary threshold.



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  • DOL Increases Overtime Minimum Salary Threshold to $58,656 in Final Rule, Implements Automatic Updates – CUPA-HR

    DOL Increases Overtime Minimum Salary Threshold to $58,656 in Final Rule, Implements Automatic Updates – CUPA-HR

    by CUPA-HR | April 23, 2024

    On April 23, the Department of Labor (DOL) issued the highly anticipated final rule to alter the overtime pay regulations under the Fair Labor Standards Act (FLSA). The rule increases the minimum salary threshold to $43,888 on July 1, 2024, and then to $58,656 on January 1, 2025. The rule also implements automatic updates to the threshold that will occur every three years. Institutions will need to make all necessary adjustments by July 1, 2024, in order to be in compliance with the final rule.

    The department clarified that the first increase updates the minimum salary threshold using the department’s current methodology, which was used in the 2019 Trump-era overtime rulemaking to set the current standard of $35,568. The second increase then implements the department’s new preferred methodology, which sets the minimum salary threshold to the 35th percentile of weekly earnings of full-time salaried workers in the lowest wage census region. This phased-in implementation will likely impact how litigation challenging the rule is both pursued and decided over the next six months.

    In September 2023, DOL issued its proposed rule to update the minimum salary threshold, which sought to increase the threshold from its current level of $35,568 annually to $60,209 — a nearly 70% increase. The proposed rule also sought to implement triennial automatic updates based on the 35th percentile.

    CUPA-HR submitted comments in response to the proposed rule and participated in a meeting with DOL and officials from the White House Office of Information and Regulatory Affairs (OIRA) to express our concerns with the proposal. In both the comments and OIRA meeting, CUPA-HR made the four following recommendations for DOL to consider before issuing their final rule:

    1. DOL should not update the salary threshold at this time.
    2. DOL should lower the proposed minimum salary threshold and account for room and board.
    3. DOL should not implement automatic updates to the salary threshold.
    4. DOL should extend the effective date of any final rule implementing a higher salary threshold.

    Lawsuits challenging the final rule are forthcoming. In the meantime, CUPA-HR will be hosting a webinar on May 8 covering the provisions of the final rule and its impact on higher education. Registration is open and free to all.



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  • DOL Issues Final Rule to Increase Federal Contractor Minimum Wage – CUPA-HR

    DOL Issues Final Rule to Increase Federal Contractor Minimum Wage – CUPA-HR

    by CUPA-HR | December 13, 2021

    On November 24, the Department of Labor (DOL)’s Wage and Hour Division (WHD) issued a final rule implementing President Biden’s Executive Order 14026 (EO), “Increasing the Minimum Wage for Federal Contractors.” The rule increases the minimum wage for federal government contractors for workers who work on or in connection with a covered federal contract to $15 per hour beginning January 30, 2022, and requires the secretary of labor to annually review and determine the minimum wage amount beginning January 1, 2023.

    As stated above, the final rule establishes standards and procedures for implementing and enforcing the minimum wage protections of Executive Order 14026. Starting January 30, 2022, all agencies will need to include a $15 minimum wage in new contracts, new solicitations, extensions or renewals of an existing contract, and exercises of an option on an existing contract. Under the EO and final rule, contracts with solicitations issued before January 30, 2022, and entered into, on or between January 30 and March 30, 2022 will be exempt from the wage. If such a contract is subsequently extended or renewed or an option is exercised under the contract, the $15 minimum wage will apply.

    Covered Contracts

    According to the EO and as finalized in the rule, the $15 minimum wage requirement only applies to the following contracts:

    • Procurement contracts for services or construction;
    • Contracts for services covered by the Service Contract Act (SCA);
    • Contracts for concessions; and
    • Contracts “entered into with the Federal Government in connection with Federal property or lands and related to offering services for Federal employees, their dependents, or the general public.”

    The new minimum wage clause will NOT need to be included in:

    • Federal grants;
    • Contracts or agreements with Indian Tribes under the Indian Self-Determination and Education Assistance Act;
    • Procurement contracts for construction that are excluded from coverage of the Davis-Bacon Act (DBA);
    • Contracts for services that are exempt from coverage under the SCA; and
    • Contracts for the manufacturing of materials, supplies, articles or equipment to the Federal Government.

    Covered Workers

    The WHD defines a covered worker in the final rule as “any person engaged in performing work on or in connection with a contract covered by the EO, and whose wages under such contract are governed by the [Fair Labor Standards Act (FLSA)], the SCA or the DBA, regardless of the contractual relationship alleged to exist between the individual and the employer.” A worker who performs “on” a covered contract is defined as “any worker who directly performs the specific services called for by the contract’s terms,” and a worker who performs “in connection with” a covered contract is defined as “any worker who performs work activities that, although are not the specific services called for by the contract’s terms, are necessary to the performance of those specific services.”

    One exemption to the rule’s minimum wage requirement is provided for FLSA-covered workers performing work “in connection with” covered contracts for less than 20 percent of their working hours in a given workweek.

    The final rule also clarifies that certain employees who are exempt from the minimum wage protections under the FLSA are also not entitled to the $15 minimum wage protection of the EO and final rule. In an FAQ page on the EO and final rule, the WHD provides “learners, apprentices, messengers and full-time students employed under certificates pursuant to FLSA sections 14(a) and (b)” as examples of individuals who are excluded from the EO’s minimum wage requirements.

    Additional Considerations

    As mentioned above, the secretary of labor will be granted authority to annually review and increase the minimum wage beginning January 1, 2023. The minimum wage will be increased by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers to address inflation.

    Additionally, the EO and final rule change compensation for tipped employees working on or in connection with a covered contract. Beginning January 30, 2022, such tipped employees must be paid a wage of at least $10.50 per hour. By January 1, 2024, the tip credit must be eliminated for such employees, and they must earn the same minimum hourly rate that other covered employees are entitled to.

    CUPA-HR will keep members apprised of any updates and resources to aid institutions as the new minimum wage final rule becomes effective.



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