Federalism and the Future of US Minimum Wage Policy
Rose, S.
S Rose - Publius: The Journal of Federalism, 2026 - academic.oup.com
Summary
Shanna Rose's research paper, "Federalism and the Future of US Minimum Wage Policy," published in *Publius: The Journal of Federalism* in 2026, examines the intricate influence of federalism on the development of minimum wage standards across the United States. The paper contends that federalism operates as both an "opportunity structure" and a "containment structure" for US wage standards, creating a dynamic environment with multiple overlapping policy venues and veto points that opposing interests of business and labor can leverage. This inherent malleability within the federal system has resulted in significant variations in minimum wage policies across different jurisdictions, including basic wage rates, indexation, tip credits, and subminimum wages, with these disparities projected to continue widening in the future. The analysis thus contributes to a broader debate concerning the merits and drawbacks of decentralized policymaking in the US. The paper elucidates these dynamics through contemporary policy challenges and state-led initiatives. A significant area of focus is the escalating concern over discrimination against disabled workers, particularly the practice of allowing subminimum wages under Section 14(c) of the Fair Labor Standards Act. As of early 2025, 18 states have already advanced legislation to terminate or phase out subminimum wage employment for individuals with disabilities, or have no such programs active, reflecting a clear movement towards ensuring equitable compensation and integrated employment opportunities for this vulnerable group. This state-level action exemplifies how federalism can foster policy innovation and diffusion, allowing states to address issues where federal progress has been limited. Additionally, the paper points to Oklahoma's State Question 832, an initiative slated for the June 2026 ballot, which proposes to gradually increase the state’s minimum wage to $15 per hour by 2029 and eliminate existing exemptions for certain workers, such as part-time or agricultural employees. These examples collectively demonstrate the proactive role states are playing in shaping the future of minimum wage policy, often overcoming national-level gridlock to enact more progressive wage standards.
Key Findings
- - Federalism serves as both an "opportunity structure" for policy innovation and a "containment structure" for wage standards, leading to diverse and expanding interjurisdictional minimum wage policies across the US.
- Growing concerns about discrimination against disabled workers have prompted significant state-level action, with 18 states having eliminated or actively phasing out subminimum wage practices.
- The Oklahoma State Question 832, scheduled for the June 2026 ballot, represents a key example of state-led efforts to incrementally raise the minimum wage to $15 and extend its coverage to more worker categories.
- The paper highlights that state and local governments are increasingly driving minimum wage policy changes, fostering experimentation and addressing areas where federal action has stalled.