March 7, 2002

by Michele Keller, Web Editor

At a time when states are recognizing that families can't survive on the $5.15 per hour federal minimum wage, the Bush administration seems intent on making it impossible for parents to bring their families out of poverty.

A single paragraph in the Bush administration's 35-page welfare overhaul proposal says that the federal minimum-wage provisions of the Fair Labor Standards Act should not apply to people in "welfare-to-work" jobs, the Los Angeles Times reported yesterday. The Bush plan asserts that Temporary Assistance for Needy Families (TANF) payments "are not considered compensation for work performed" and therefore do not "entitle an individual to a salary or to benefits provided under any other provision of law."

The Bush proposal comes as cities and states across the country raise the minimum wage because even full-time employment at $5.15 per hour does not provide an adequate standard of living. The city of New Orleans, for example, passed an ordinance on Feb. 2 that permanently raises the minimum wage for all employees to $1 above the federal level.

In 1997 and in 1999, the Clinton administration made clear that federal minimum wage laws cover most "welfare-to-work" jobs. Under the policy, welfare and food stamp benefits are counted as compensation for workfare jobs.

"Once again, Bush shows us that he's no compassionate conservative, he's a ruthless reactionary," said NOW President Kim Gandy. "Thousands of people working minimum-wage jobs are already unable to feed their families, pay their rent, or afford basic necessities. The fact that Bush thinks struggling families can pull themselves out of poverty while earning even less than minimum wage is an affront to society."

For more information on this issue:

Conservative Version of Welfare Reform Flawed
http://www.now.org/nnt/special-2001/welfare.html