Minimum Wage in the United States and Japan

Minimum Wage Definition

United States

Minimum Wage

• the minimum hourly, daily or monthly wage that must be paid to employees or workers. Each country sets its own minimum wage laws and regulations, and more than 90% of all countries have some kind of minimum wage legislation. (according to wikipedia)

the federal minimum wage

• $5.15 per hour since 1997

the minimum wage for workers who receive tips

• $2.13 an hour in direct wages

www.dol.gov/esa/minwage/america.gif

Minimum Wage Differences

United States

Whom does minimum wage apply? http://www.nolo.com/article.cfm/pg/2/objectId/244AD836-D9F5-49AE-813B0478FF97298B/catId/A6167778-4246-4156-A6277BB2DF1CE4C4/111/259/232/ART/

Japan

Whom does minimum wage apply?

United States and Japan Enforcement Laws

United States

Who regulates?

• Department of Labor's Wage and Hour Division

What is regulated?

• Minimum Wage
• Overtime
• Child Labor Standards
• Record Keeping

How are regulations maintained?

• Submitting of Records

Consequences

• Fines not exceeding $10,000 per violation

Japan

Who regulates?

• Ministry of Labour (Korosho)

What is regulated?

• Same as United States

How are regulations maintained?

• Inspections in Demember and Springtime
• Submitting Records

Consequences

• Fine not exceeding 10,000 yen

United States's vs Japan's Minimum Wage

United State's/Japan's Advantages

United States

• Benefits for working families
• Benefits for disadvantaged workers
• Help reserve the trend of declining real wages for workers
• Strategy to end poverty
• Low public and social costs

United State's/Japan's Disadvantages

United States

• Reduce of labor hours and/or employment
• Reduce profits
• Raise prices
• Attracts immigrants from low wage countries