U.S. to raise minimum wage

Increase part of larger bill on Iraq spending, tax breaks
|hrreporter.com|Last Updated: 05/25/2007

After 10 years without an increase to the United States minimum wage, the House of Representatives and the Senate finally passed a bill that will see an increase of $2.10.

The House passed the bill, which was part of a larger bill on spending in Iraq, by a vote of 348 to 73 on May 24. Only a couple hours later, the Senate voted to pass the bill by a vote of 80 to 14.

The bill will increase the minimum wage from $5.15 an hour to $7.25 in three stages over two years. The bill includes $4.84 billion in tax breaks for small businesses, which made the case to Republicans that an increase in the minimum wage would be a financial hardship for them.