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Thursday, October 25, 2012

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Minimum Wage Workers in Hawaii – 2011

Of the 321,000 workers paid hourly rates in the state of Hawaii in 2011, 8,000 earned exactly the prevailing Federal minimum wage of $7.25 per hour, while 7,000 earned less, the U.S. Bureau of Labor Statistics reported today. Richard Holden, the Bureau’s regional commissioner, noted that the 15,000 workers earning the Federal minimum wage or less made up 4.7 percent of all hourly-paid workers in the state. Nationwide, those earning the Federal minimum or less accounted for 5.2 percent of the hourly-paid workforce. (The Hawaii minimum wage is equal to the prevailing Federal minimum wage.)

The number of hourly-paid workers in Hawaii who earned the prevailing Federal minimum wage or less equaled 7,000 in 2000—the first year data were available—then remained below that level through 2008. From 2001 through 2008, these workers accounted 2.0 percent or less of all hourly-paid workers in Hawaii. (See chart 1.) It was in 2007 that the Federal minimum wage began increasing after holding steady for nearly a decade. The result was that more Hawaiian workers fell into this category, peaking at 15,000 in 2010 and remaining at that level in 2011.

Percentage of hourly-paid wage and salary workers with earnings at or below the prevailing Federal minimum wage in Hawaii, annual averages, 2001-2011

Over the year, the portion of hourly-paid workers in Hawaii who earned at or below the Federal minimum wage remained at 4.7 percent. In both 2010 and 2011, 2.5 percent of hourly-paid workers earned the prevailing minimum wage while 2.2 percent earned less than the minimum wage. As a result, 2011 was the first year when neither the percentage of hourly-paid workers earning at or below the Federal minimum wage changed.

Of the 15,000 workers earning the prevailing Federal minimum wage or less in Hawaii in 2011, 7,000, or 47 percent, were women. These women represented 4.3 percent of all women paid hourly rates in the state. There were 8,000 men earning the prevailing minimum wage or less in Hawaii; this number made up 5 percent of all men who were paid hourly rates in the state. (See table A; numbers may not sum to totals due to rounding.)

Overall, wage and salary workers earning hourly rates in the state had median hourly earnings of $13.57 in 2011; nationally, the median was $12.71. The median hourly rates for men and women in Hawaii in 2011 were $14.67 and $12.54, respectively. For the nation, the comparable figures were $13.80 per hour for men and $11.98 per hour for women.

Table A. Employed wage and salary workers(1) paid hourly rates with earnings at or below the prevailing Federal minimum wage in the State of Hawaii, by sex, annual averages

Hawaii

Number of workers (in thousands) Percent of workers paid hourly rates Median earnings (in dollars)
Total paid hourly rates At or below minimum wage At or below minimum wage
Total(2) At minimum wage Below minimum wage Total(2) At minimum wage Below minimum wage
Total, both sexes

2001

315 6 1 5 1.9 0.3 1.6 10.23

2002

293 6 1 5 2.0 0.3 1.7 10.65

2003

309 4 1 3 1.3 0.3 1.0 11.16

2004

329 5 1 4 1.5 0.3 1.2 11.13

2005

341 4 >0 4 1.2 0.0 1.2 12.04

2006

347 4 1 3 1.2 0.3 0.9 12.30

2007(3)

338 4 >0 4 1.2 0.0 1.2 12.81

2008(3)

338 5 >0 5 1.5 0.0 1.5 13.05

2009(3)

320 9 3 6 2.8 0.9 1.9 13.11

2010

318 15 8 7 4.7 2.5 2.2 13.82

2011

321 15 8 7 4.7 2.5 2.2 13.57
Total, men
               

2001

162 1 >0 1 0.6 0.0 0.6 11.12

2002

147 2 >0 2 1.4 0.0 1.4 11.97

2003

160 2 1 1 1.3 0.6 0.6 12.03

2004

169 1 >0 1 0.6 0.0 0.6 12.19

2005

168 1 >0 1 0.6 0.0 0.6 13.21

2006

174 1 >0 1 0.6 0.0 0.6 13.86

2007(3)

174 1 >0 1 0.6 0.0 0.6 14.67

2008(3)

175 3 >0 3 1.7 0.0 1.7 14.01

2009(3)

165 4 1 3 2.4 0.6 1.8 14.72

2010

160 5 3 2 3.1 1.9 1.3 14.95

2011

160 8 4 4 5.0 2.5 2.5 14.67
Total, women
               

2001

154 5 1 4 3.2 0.6 2.6 9.89

2002

146 4 1 3 2.7 0.7 2.1 9.91

2003

149 2 0 2 1.3 0.0 1.3 10.12

2004

160 3 >0 3 1.9 0.0 1.9 10.12

2005

173 3 >0 3 1.7 0.0 1.7 10.98

2006

173 3 1 2 1.7 0.6 1.2 11.18

2007(3)

164 3 >0 3 1.8 0.0 1.8 11.71

2008(3)

163 3 0 3 1.8 0.0 1.8 12.14

2009(3)

155 5 2 3 3.2 1.3 1.9 12.02

2010

158 10 5 5 6.3 3.2 3.2 12.19

2011

161 7 4 3 4.3 2.5 1.9 12.54

Footnotes:
(1) All self-employed persons are excluded, whether or not their businesses are incorporated.
(2) Data may not add to totals due to rounding.
(3) Data for 2007-09 reflect changes in the minimum wage that took place in those years.

In 2011, Hawaii’s proportion of hourly-paid workers earning at or below the prevailing Federal minimum wage ranked near the middle among the 50 states and the District of Columbia in 2011. Georgia had the highest proportion of hourly-paid workers earning at or below the prevailing Federal minimum wage, 9.6 percent, followed by Mississippi at 8.5 percent and Texas at 8.0 percent. Other states with shares of 7.0 percent or higher were Louisiana, West Virginia, South Carolina, Missouri, Virginia, and Kansas. The states with the lowest percentage of workers earning the Federal minimum or below included Oregon, California, Washington, and Alaska, all less than 2.0 percent. It should be noted that, as of January 1, 2012, 18 states and the District of Columbia had laws establishing minimum wage standards that exceeded the federal level of $7.25 per hour. (See table 1 and chart 2.) 

Map of minimum wage laws in the States, January 1, 2012

Technical Note

The Bureau of Labor Statistics’ data on minimum wage earners are derived from the Current Population Survey (CPS). This survey is conducted monthly for the Bureau of Labor Statistics by the U.S. Census Bureau, using a national sample of about 60,000 households, with coverage in all 50 states and the District of Columbia. The earnings data are collected from one-fourth of the CPS monthly sample. Data in this summary are annual averages.

Statistics based on the CPS data are subject to both sampling and nonsampling error. The differences among data for the states reflect, in part, variations in the occupation, industry, and age composition of each state’s labor force. In addition, sampling error for the state estimates is considerably larger than it is for the national data.

Minimum wage worker data, particularly levels, for each year are not strictly comparable with data for earlier years because of the introduction of revised population controls used in the CPS. For technical documentation and related information, including reliability of the CPS estimates, see www.bls.gov/cps/documentation.htm.

It should be noted that the presence of a sizable number of workers with reported wages below the minimum does not necessarily indicate violations of the Fair Labor Standards Act, as there are exemptions to the minimum wage provisions of the law. The estimates of the numbers of minimum and subminimum wage workers presented in the accompanying tables pertain to workers paid at hourly rates; salaried and other non-hourly workers are excluded. As such, the actual number of workers with earnings at or below the prevailing minimum is undoubtedly understated.

The prevailing Federal minimum wage was $2.90 in 1979, $3.10 in 1980, and $3.35 in 1981-89. The minimum wage rose to $3.80 in April 1990, $4.25 in April 1991, $4.75 in October 1996, and $5.15 in September 1997. On July 24, 2007, the Federal minimum wage increased to $5.85 per hour; on July 24, 2008, to $6.55 per hour; and on July 24, 2009, to $7.25 per hour.

The principal definitions used in connection with the earnings series in this release are described below:

Median hourly earnings. The median is the amount which divides a given earnings distribution into two equal groups, one having earnings above the median and the other having earnings below the median. The median is less sensitive to extreme wages than the mean; this makes it a better measure for highly skewed distributions.

Wage and salary workers. Workers age 16 and over who receive wages, salaries, commissions, tips, payment in kind, or piece rates. Data refer to earnings on a person’s sole or principal job. The group includes employees in both the private and public sectors but, for the purposes of the earnings series, excludes all self-employed persons, regardless of whether or not their businesses are incorporated.

Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200, TDD message referral phone number: 1-800-877-8339.

Table 1. Employed wage and salary workers paid hourly rates with earnings at or below the prevailing Federal minimum wage by State, 2011 annual averages
State Number of workers (in thousands) Percent distribution Percent of workers paid hourly rates
Total paid hourly rates At or below minimum wage Total paid hourly rates At or below minimum wage At or below minimum wage
Total(1) At minimum wage Below minimum wage Total(1) At minimum wage Below minimum wage Total At minimum wage Below minimum wage

Total, 16 years and over

73,926 3,829 1,677 2,152 100.0 100.0 100.0 100.0 5.2 2.3 2.9

Alabama

1,147 74 43 31 1.6 1.9 2.6 1.4 6.5 3.7 2.7

Alaska

212 4 1 3 0.3 0.1 0.1 0.1 1.9 0.5 1.4

Arizona

1,517 85 20 65 2.1 2.2 1.2 3.0 5.6 1.3 4.3

Arkansas

746 49 33 16 1.0 1.3 2.0 0.7 6.6 4.4 2.1

California

8,706 139 53 86 11.8 3.6 3.2 4.0 1.6 0.6 1.0

Colorado

1,222 49 9 40 1.7 1.3 0.5 1.9 4.0 0.7 3.3

Connecticut

870 25 4 21 1.2 0.7 0.2 1.0 2.9 0.5 2.4

Delaware

213 11 3 8 0.3 0.3 0.2 0.4 5.2 1.4 3.8

District of Columbia

94 4 1 3 0.1 0.1 0.1 0.1 4.3 1.1 3.2

Florida

3,891 246 73 173 5.3 6.4 4.4 8.0 6.3 1.9 4.4

Georgia

2,041 196 105 91 2.8 5.1 6.3 4.2 9.6 5.1 4.5

Hawaii

321 15 8 7 0.4 0.4 0.5 0.3 4.7 2.5 2.2

Idaho

379 19 12 7 0.5 0.5 0.7 0.3 5.0 3.2 1.8

Illinois

3,095 109 29 80 4.2 2.8 1.7 3.7 3.5 0.9 2.6

Indiana

1,730 108 54 54 2.3 2.8 3.2 2.5 6.2 3.1 3.1

Iowa

941 53 28 25 1.3 1.4 1.7 1.2 5.6 3.0 2.7

Kansas

802 56 27 29 1.1 1.5 1.6 1.3 7.0 3.4 3.6

Kentucky

1,077 63 30 33 1.5 1.6 1.8 1.5 5.8 2.8 3.1

Louisiana

1011 75 33 42 1.4 2.0 2.0 2.0 7.4 3.3 4.2

Maine

381 14 3 11 0.5 0.4 0.2 0.5 3.7 0.8 2.9

Maryland

1,274 65 27 38 1.7 1.7 1.6 1.8 5.1 2.1 3.0

Massachusetts

1,539 60 11 49 2.1 1.6 0.7 2.3 3.9 0.7 3.2

Michigan

2,550 117 29 88 3.4 3.1 1.7 4.1 4.6 1.1 3.5

Minnesota

1,544 78 47 31 2.1 2.0 2.8 1.4 5.1 3.0 2.0

Mississippi

686 58 37 21 0.9 1.5 2.2 1.0 8.5 5.4 3.1

Missouri

1,543 109 54 55 2.1 2.8 3.2 2.6 7.1 3.5 3.6

Montana

271 10 6 4 0.4 0.3 0.4 0.2 3.7 2.2 1.5

Nebraska

532 29 15 14 0.7 0.8 0.9 0.7 5.5 2.8 2.6

Nevada

670 22 9 13 0.9 0.6 0.5 0.6 3.3 1.3 1.9

New Hampshire

368 14 4 10 0.5 0.4 0.2 0.5 3.8 1.1 2.7

New Jersey

1,795 99 41 58 2.4 2.6 2.4 2.7 5.5 2.3 3.2

New Mexico

459 20 6 14 0.6 0.5 0.4 0.7 4.4 1.3 3.1

New York

3,930 199 91 108 5.3 5.2 5.4 5.0 5.1 2.3 2.7

North Carolina

2,055 140 65 75 2.8 3.7 3.9 3.5 6.8 3.2 3.6

North Dakota

208 11 6 5 0.3 0.3 0.4 0.2 5.3 2.9 2.4

Ohio

3,224 150 27 123 4.4 3.9 1.6 5.7 4.7 0.8 3.8

Oklahoma

828 56 36 20 1.1 1.5 2.1 0.9 6.8 4.3 2.4

Oregon

1010 12 4 8 1.4 0.3 0.2 0.4 1.2 0.4 0.8

Pennsylvania

3,400 193 97 96 4.6 5.0 5.8 4.5 5.7 2.9 2.8

Rhode Island

289 11 3 8 0.4 0.3 0.2 0.4 3.8 1.0 2.8

South Carolina

1,078 79 42 37 1.5 2.1 2.5 1.7 7.3 3.9 3.4

South Dakota

253 13 7 6 0.3 0.3 0.4 0.3 5.1 2.8 2.4

Tennesee

1,455 101 48 53 2.0 2.6 2.9 2.5 6.9 3.3 3.6

Texas

5,896 473 259 214 8.0 12.4 15.4 9.9 8.0 4.4 3.6

Utah

765 35 15 20 1.0 0.9 0.9 0.9 4.6 2.0 2.6

Vermont

182 4 1 3 0.2 0.1 0.1 0.1 2.2 0.5 1.6

Virginia

1,697 121 57 64 2.3 3.2 3.4 3.0 7.1 3.4 3.8

Washington

1,686 31 6 25 2.3 0.8 0.4 1.2 1.8 0.4 1.5

West Virginia

462 34 20 14 0.6 0.9 1.2 0.7 7.4 4.3 3.0

Wisconsin

1,711 78 32 46 2.3 2.0 1.9 2.1 4.6 1.9 2.7

Wyoming

167 10 5 5 0.2 0.3 0.3 0.2 6.0 3.0 3.0

Footnotes:
(1) Data may not add to totals due to rounding.

NOTE: Data exclude all self-employed persons whether or not their businesses are incorporated. Users are reminded that these data are based on a sample and are therefore subject to sampling error; the degree of error may be quite large for less populous States. It is not possible to determine whether workers surveyed in the CPS are actually covered by the Fair Labor Standards Act (FLSA) or by individual State minimum wage laws. Thus, some workers reported as earning the prevailing Federal minimum wage may not in fact be covered by Federal or State minimum wage laws. Also, there are a number of States that have minimum wages that exceed the Federal minimum wage. At the same time, the presence of a sizable number of workers with wages below the prevailing Federal minimum wage does not necessarily indicate violations of the FLSA or applicable State laws, because there are numerous exclusions and exemptions to these minimum wage statutes.Hourly earnings do not include over time pay, commissions, or tips.

 

Last Modified Date: October 25, 2012