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A Fracturing Wage Floor? Below-Minimum Wages in the Twenty-First Century

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  • Bruce Fallick
  • Youha Kim

Abstract

Recent data suggest a growing prevalence and magnitude of below-minimum wages, including minimum-wage violations, in the United States in the twenty-first century. In the 10 most populous states, the incidence of likely minimum wage violations reached its highest level in 2025. Among workers experiencing violations, the average amount of underpayment reached its highest level in 2023. In the Fourth Federal Reserve District, however, we observe notable deviations from national trends, with declining incidence of minimum-wage violations since 2007.

Suggested Citation

  • Bruce Fallick & Youha Kim, 2026. "A Fracturing Wage Floor? Below-Minimum Wages in the Twenty-First Century," Economic Commentary, Federal Reserve Bank of Cleveland, vol. 2026(19), pages 1-8, August.
    • Handle: RePEc:fip:fedcec:103711
    DOI: 10.26509/frbc-ec-202619
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