What are "minimum wage laws" designed to do?

Minimum wage laws are specifically crafted to guarantee that workers earn at least a baseline level of compensation for their labor. These laws aim to protect workers from being paid excessively low wages that would not support a minimal standard of living. By establishing a legal minimum that employers must pay, these laws seek to ensure a basic level of income to help workers cover essential needs, thereby contributing to economic stability for individuals and families.

The focus on providing a foundational income aligns with broader societal objectives of preventing poverty and ensuring fairness in compensation practices across various sectors of the economy. While other possible impacts of minimum wage laws might include effects on job competition or employment rates, the primary and most direct purpose remains centered on ensuring that all workers are compensated fairly for their contributions to the workforce.