Need That Money

From Minimum Wage to Overtime Pay: Laws Affecting Your Labor Day Paycheck

History and Laws Affecting Paychecks on Labor DayAs Labor Day approaches, many employees are looking forward to a much-needed break from work. However, it’s important to remember the significance of this holiday, and how it has impacted workers’ rights and wages over the years.

This article will delve into the history and laws that affect paychecks on Labor Day, including the minimum wage, the

Affordable Care Act, final rule on overtime pay, minimum wage jump for federal contractors, and recent minimum wage changes.

Minimum Wage

The federal minimum wage, which is currently set at $7.25 per hour, has been a hotly debated topic for years. The Fair Labor Standards Act (FLSA) initially established a minimum wage of 25 cents per hour in 1938, and it has been raised several times since then.

In 2007, it was increased to $5.85 per hour and has been adjusted for cost-of-living increases annually.

There is a great deal of dispute about the impact of the minimum wage on the economy, especially in terms of job growth and unemployment rates, but many workers and labor advocates argue that it’s an essential safeguard against poverty and wage exploitation.

In addition to the federal minimum wage, many states and cities have passed laws that establish higher minimum wages, including New York City, District of Columbia, and California.

Affordable Care Act


Affordable Care Act (ACA), also known as Obamacare, has had numerous implications for workers’ paychecks, particularly for those who are self-employed. One of the most significant impacts is the healthcare fee, or individual shared responsibility payment, which is required for those who do not have health insurance coverage.

The fee is calculated in two ways, either as a percentage of the household income or a flat fee per person, and the amount is adjusted annually based on the Consumer Price Index. While some workers may be exempt from the fee, such as those who have certain religious beliefs or financial hardships, many are still required to pay it.

Final Rule on Overtime Pay

In 2016, President Obama announced the final rule on overtime pay, which would have raised the salary threshold for exempting workers from overtime pay from $23,660 to $47,476 annually. The rule was intended to benefit workers who were classified as salaried but were not receiving overtime pay, despite working more than 40 hours per week.

However, the rule was blocked by a federal judge in 2017, and has yet to be reinstated. This decision has been controversial, with some arguing that it would have provided much-needed relief for overworked and underpaid employees, while others contend that it would have resulted in higher labor costs and fewer job opportunities.

Minimum Wage Jump for Federal Contractors

In 2014, President Obama signed Executive Order 13658, which established a minimum wage of $10.10 per hour for federal contractors. This was a significant increase from the previous minimum wage of $7.25, and it also extended to tipped employees, who previously had a lower minimum wage.

While this increase was a step in the right direction for many workers, particularly those who were struggling to make ends meet on low wages, there were concerns about how it would impact small businesses and the federal budget. Additionally, some critics argued that it didn’t go far enough, since it only applied to federal contractors and not all workers.


Minimum Wage Changes

In recent years, there have been several minimum wage changes across the country, particularly in large metropolitan areas. In New York City, the minimum wage for most workers increased to $15 per hour in 2018, and some food service workers will see their wages increase to $15.50 per hour in 2020.

Similarly, in District of Columbia, the minimum wage was raised to $15 per hour in 2020, and in California, the minimum wage is set to increase to $15 per hour by 2022.

These changes have been welcomed by many workers and labor advocates, who argue that they are necessary to keep up with the rising cost of living and ensure that all workers are paid a living wage.

However, there are still concerns about how these increases will impact small businesses, particularly those in industries that rely heavily on low-wage workers.


As Labor Day approaches, it’s important to recognize the many laws and historical events that have shaped workers’ rights and wages over the years. From the establishment of the federal minimum wage to recent increases in states and cities across the country, there is still much work to be done to ensure that all workers are paid a fair and just wage.

By staying informed and engaged on these issues, we can continue to make progress and honor the legacy of the labor movement. In conclusion, this article sheds light on the history and laws affecting paychecks on Labor Day, including the federal minimum wage, the

Affordable Care Act, final rule on overtime pay, minimum wage jump for federal contractors, and recent minimum wage changes.

While there are ongoing debates about the impact of these laws on the economy, it’s important to ensure that workers are paid a fair and just wage. As we reflect on the significance of Labor Day, let us continue to strive towards better working conditions and fair wages for all.

Popular Posts