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Wage and Hour Division - Essay Example

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The author of the following paper under the title 'Wage and Hour Division' focuses on low and minimum wage which earners in the United States face several economic hardships in a country where little is provided by the government and costs are continually rising…
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Wage and Hour Division
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Luxuries, such as vacations and dining out, are out of reach for the minimum wage earner that earns the $6.55 per hour as prescribed by federal law (Compliance Assistance). In addition, the low wage earner is not able to save for emergencies or make any plans on financing the college education of their children. While raising the minimum wage does help reduce the hardship on the poorest workers, it is often met with political resistance that claims it costs business too much money and reduces the number of jobs available.

Another practical way to raise wages would be to increase the federal Earned Income Tax Credit (EITC). This is money given to the working poor through a yearly tax credit. In addition to increasing this allowance, it could be disbursed on a monthly basis, which would help workers meet their budgetary and immediate needs. The current maximum amount that can be claimed is $4,824 with two or more qualifying children (Earned Income Tax Credit). This equates to approximately $93 per week or an additional $2.

32 per hour in a 40-hour workweek. Increasing this amount would help the low wage earner significantly.

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