when the economy is in a recession the actual level of wages for many workers drops to the minimum wage or a little above there are too many candidates for too few jobs and the businesses that hire may be barely breaking even during the great recession that started in 2008 even investment banks justified paying lower wages due to their slowing revenue growth 
the federal minimum wage has been 7 25 per hour since 2009 many states cities and counties have set higher minimum wages twenty two states increased their minimum wages on jan 1 2024 1example justified wages for employeescompanies may compare their employees salaries and work experience when determining a justified wage for example one current employee has 10 years experience and receives a salary of 65 000 based on this information management determines that another employee s justified wage is 60 000 given that they have eight years experience management may also consider other factors when establishing a justified wage such as the responsibilities the employee will have and the revenue that their work will generate for instance the amount of commissions a stockbroker writes justifies their wage employees can have input into their justified wages during pay reviews by discussing how they are adding value to the company example justified wage for ceos