HR 8555
Living Wage For All Act
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Bill overview
The Living Wage For All Act proposes to gradually increase the federal minimum wage to $25 per hour, aligning it with the national median wage. It requires large, highly profitable corporations to lead this transition and ends the practice of subminimum wages. The bill also establishes a mechanism for automatic annual adjustments to the minimum wage based on the national median wage, while providing specific provisions for tipped employees, newly hired workers under 20, and incarcerated workers.
Key provisions
- Increases the federal minimum wage to $25 per hour by 2031.
- Requires large corporations (with $1 billion in revenue or 500+ employees) to lead the wage increase.
- Ends the practice of subminimum wages for certain workers.
- Links the federal minimum wage to the national median hourly wage, adjusted annually.
- Provides specific wage rates for tipped employees, including a base wage and retention of tips.
- Establishes a minimum wage of at least $6.00 per hour for newly hired employees under 20.
- Includes incarcerated workers in the minimum wage calculation, with specific provisions for their employment.
- Requires automatic adjustments to the minimum wage to maintain alignment with the national median wage.
Who is affected
- Workers earning the federal minimum wage
- Large corporations
- Small employers
- Tipped employees
- Newly hired employees under 20 years old
Notable changes
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
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119th CONGRESS — 2d Session
H. R. 8555
IN THE HOUSE OF REPRESENTATIVES
A BILL
To place the Federal minimum wage on a durable path toward a living wage aligned with the national median wage, to require large, highly profitable corporations to lead the transition, to end all subminimum wages, and for other purposes.
This Act may be cited as the Living Wage For All Act
.
Congress finds the following:
It is a national priority that work pays a living wage to all workers, and that the Federal minimum wage be aligned with the actual cost of living. The wage increases established by this Act—including the attainment of a $25 hourly wage—are steps toward that goal and shall be followed by continued adjustments to ensure that the minimum wage remains responsive to changes in wages and economic conditions over time.
Based on the best available data, including wage data from the Bureau of Labor Statistics and economic projections from the Congressional Budget Office, a minimum wage of at least $25 per hour represents a conservative baseline step toward aligning wages with the cost of living nationwide.
Large, highly profitable corporations have the greatest capacity to raise wages and should therefore lead the transition to higher wage standards before smaller employers.
Tying the Federal minimum wage to a fixed share of the national median hourly wage ensures that wage standards rise with the economy and prevents future erosion of purchasing power.
A Federal minimum wage aligned with median wages strengthens economic security, reduces reliance on public assistance, and promotes broad-based economic growth.
The purpose of this Act is to place the Federal minimum wage on a durable path toward a living wage by ensuring that it reaches a level equal to two-thirds of the national median hourly wage, consistent with the phase-in schedule and median-wage adjustments established under this Act, as soon as economically possible, and remains indexed to that standard thereafter, while requiring large corporations to lead the transition and providing additional adjustment time for other employers.
In this Act:
The term large employer means any employer that—
has annual gross revenues of $1,000,000,000 or more; or
employs 500 or more employees nationwide; as determined by the Secretary of Labor.
The term other employer means any employer that does not meet the definition of a large employer.
Section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to read as follows:
Except as otherwise provided in this section, not less than—
Each employer that is a large employer shall pay each employee wages at a rate not less than—
$12.00 per hour, beginning January 1, 2026;
$15.00 per hour, beginning January 1, 2027;
$18.00 per hour, beginning January 1, 2028;
$20.00 per hour, beginning January 1, 2029;
$22.50 per hour, beginning January 1, 2030; and
$25.00 per hour, beginning January 1, 2031,
subject to subsection (h): Provided, That, notwithstanding the preceding schedule, the wage required under this subparagraph shall not exceed the wage determined under subsection (h) for the applicable year.
Each employer that is an other employer shall pay each employee wages at a rate not less than—
$12.00 per hour, beginning January 1, 2026;
$14.00 per hour, beginning January 1, 2027;
$16.00 per hour, beginning January 1, 2028;
$18.00 per hour, beginning January 1, 2029;
$20.00 per hour, beginning January 1, 2030;
$20.60 per hour, beginning January 1, 2031;
$21.20 per hour, beginning January 1, 2032;
$21.80 per hour, beginning January 1, 2033;
$22.40 per hour, beginning January 1, 2034;
$23.00 per hour, beginning January 1, 2035;
$23.60 per hour, beginning January 1, 2036;
$24.20 per hour, beginning January 1, 2037; and
$25.00 per hour, beginning January 1, 2038,
subject to subsection (h).
Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) is amended by adding at the end the following:
The minimum wage shall be equal to two-thirds of the national median hourly wage of all employees, as determined by the Bureau of Labor Statistics.
$1.00; or
Section 3(m)(2)(A)(i) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)(i)) is amended to read as follows:
the cash wage paid such employee, which for purposes of such determination shall be not less than—
for tipped employees of large employers (as defined in section 3 of the Living Wage For All Act), not less than—
$6.00 an hour, for the 1-year period beginning on the effective date under section 11 of the Living Wage For All Act;
$9.00 an hour, beginning 1 year after such effective date;
$12.00 an hour, beginning 2 years after such effective date;
$15.00 an hour, beginning 3 years after such effective date;
$18.00 an hour, beginning 4 years after such effective date; and
beginning 5 years after such effective date, the minimum wage in effect under section 6(a)(1) for such employee; and
for tipped employees of other employers (as defined in section 3 of the Living Wage For All Act), not less than—
$4.75 an hour, for the 1-year period beginning on the effective date under section 11 of the Living Wage For All Act;
for each succeeding 1-year period until the cash wage under this subclause equals the minimum wage in effect under section 6(a)(1) for such employee, an hourly wage equal to the amount determined under this subclause for the preceding year, increased by the lesser of—
$1.75; or
the amount necessary for the wage under this subclause to equal the minimum wage in effect under section 6(a)(1) for such employee; and
for each succeeding 1-year period after the increase made pursuant to subclause (II)(bb), the minimum wage in effect under section 6(a)(1) for such employee; and
of this subsection, and all tips received by such employee have been retained by the employeeand inserting
of this subsection. Any employee shall have the right to retain any tips received by such employee; and
An employer shall inform each employee of the right and exception provided under the preceding sentence..
Section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)), as amended by subsections (a) and (b), is further amended by striking the sentence beginning with In determining the wage an employer is required to pay a tipped employee,
and all that follows through of this subsection.
and inserting The wage required to be paid to a tipped employee shall be the wage set forth in section 6(a)(1).
.
or in accordance with subclause (II) or (III) of section 3(m)(2)(A)(i),and inserting
or in accordance with section 3(m)(2)(A)(i),.
Section 16 of the Fair Labor Standards Act of 1938 (29 U.S.C. 216) is amended—
in the third sentence of subsection (b), by inserting or used
after kept
; and
in the second sentence of subsection (e)(2), by inserting or used
after kept
.
a wage which is not less than $4.25 an hour.and inserting the following:
$1.75; or
Section 6(g) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(g)), as amended by subsection (a), shall be repealed.
Subsection (i) of section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as added by section 8 of the Living Wage For All Act, is amended by striking or subparagraph (B) or (C) of subsection (g)(1)
and inserting or subsection (g)(1)
.
The repeal and amendment made by paragraphs (1) and (2), respectively, shall take effect on the date that is 1 day after the date on which the hourly wage under section 6(g)(1) equals the minimum wage in effect under section 6(a)(1).
Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as amended by this Act, is further amended by adding at the end the following:
Not later than 60 days prior to the effective date of any increase in the required wage determined under subsection (a)(1) or subsection (g)(1), or in accordance with section 3(m)(2)(A)(i) or section 14(c)(1)(A), the Secretary shall publish in the Federal Register and on the website of the Department of Labor a notice announcing each increase in such required wage.
Subparagraph (A) of section 14(c)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)(1)) is amended to read as follows:
at a rate that equals or exceeds, for each year, the greater of—
$5.00 an hour, for the 1-year period beginning on the effective date under section 11 of the Living Wage For All Act;
for each succeeding 1-year period until the wage rate under this clause equals the wage rate in effect under section 6(a)(1) for such period, an hourly wage equal to the amount determined under this clause for the preceding year, increased by the lesser of—
$1.75; or
the amount necessary for the wage rate under this clause to equal the wage rate in effect under section 6(a)(1) for such period; and
for each succeeding 1-year period after the increase made pursuant to clause (II)(bb), the wage rate in effect under section 6(a)(1); or
if applicable, the wage rate in effect on the day before the date of enactment of the Living Wage For All Act for the employment, under a special certificate issued under this paragraph, of the individual for whom the wage rate is being determined under this subparagraph,
Section 14(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)) is amended by adding at the end the following:
Notwithstanding paragraph (1), the Secretary shall not issue a special certificate under this subsection to an employer that was not issued a special certificate under this subsection before the date of enactment of the Living Wage For All Act.
Upon request, the Secretary shall provide—
technical assistance and information to employers issued a special certificate under this subsection for the purposes of—
assisting such employers to comply with this subsection, as amended by the Living Wage For All Act; and
ensuring continuing employment opportunities for individuals with disabilities receiving a special minimum wage rate under this subsection; and
information to individuals employed at a special minimum wage rate under this subsection, which may include referrals to Federal or State entities with expertise in competitive integrated employment.
The amendments made by this paragraph shall take effect on the date of enactment of this Act.
Section 14(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)), as amended by paragraph (2), is further amended by adding at the end the following:
Beginning on the day after the date on which the wage rate described in paragraph (1)(A)(i) first equals the wage rate in effect under section 6(a)(1), the authority to issue special certificates under paragraph (1) shall expire, and no special certificates issued under paragraph (1) shall have any legal effect.
Subsection (i) of section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as added by section 8 of the Living Wage For All Act, is amended by striking or section 14(c)(1)(A)
.
The amendment made by paragraph (1) shall take effect on the day after the date on which the wage rate described in section 14(c)(1)(A)(i) first equals the wage rate in effect under section 6(a)(1).
Section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C. 203) is amended—
in subsection (e)—
in paragraph (2)—
in subparagraph (B), by striking ; and
and inserting a semicolon;
in subparagraph (C)(ii)(V), by striking the period at the end and inserting ; and
; and
by adding at the end the following:
any individual employed as an incarcerated worker by a public agency that operates the correctional facility in which such individual is incarcerated or detained.
by adding at the end the following:
The term employee includes (in addition to an individual described in paragraph (2)(D)) any individual employed as an incarcerated worker by a private entity that operates, through a contract with a public agency, the correctional facility in which such individual is incarcerated or detained.
in subsection (m)(1), by striking any employee.
and inserting any employee: Provided further, That, in the case of an employee who is an incarcerated worker, the cost of board, lodging, or other facilities and any amount taken from amounts paid such incarcerated worker for payment of a court-imposed fee shall not be included in the wage paid to such employee.
; and
by adding at the end the following:
Incarcerated worker
means an individual, incarcerated or detained in a correctional facility operated by a public agency or by a private entity through a contract with a public agency, who performs work offered or required by or through the correctional facility, including work associated with prison work programs, work release programs, the UNICOR program, State prison industries, public works programs, restitution centers, correctional facility operations and maintenance, and private entities.
Correctional facilityhas the meaning given such term in section 901 of the Omnibus Crime Control and Safe Streets Act of 1968 (34 U.S.C. 10251).
Court-imposed feemeans any fee imposed by a court as a result of a criminal conviction, including any surcharge imposed for a felony or misdemeanor conviction, a criminal justice administrative fee, a court-appointed attorney fee, a court clerk fee, a filing clerk fee, a DNA database fee, a jury fee, a crime lab analysis fee, a late fee, an installment fee, or any other court cost.
Except as otherwise provided, this Act and the amendments made by this Act shall take effect on the first day of the calendar year that begins after the date of enactment of this Act.