Living Wage For All Act

Full Title:
Living Wage For All Act

Summary#

This bill, the "Living Wage For All Act," changes the federal Fair Labor Standards Act to raise the federal minimum wage on a scheduled path and then tie it to the national median hourly wage. It defines "large employers" as firms with $1,000,000,000 or more in annual revenue or 500 or more employees. Large employers have a faster phase-in schedule that reaches $25.00 per hour by January 1, 2031 (subject to the median-wage rule). Other employers have a slower phase-in that reaches $25.00 per hour by January 1, 2038 (subject to the median-wage rule). After the minimum wage reaches two-thirds of the national median hourly wage, the minimum wage is automatically adjusted each year to keep that ratio using Bureau of Labor Statistics data (and CBO projections during the phase-in if needed). The bill requires the Department of Labor to publish annual determinations and to give notice before increases.

The bill phases out separate lower wages for certain groups. It sets multi-year schedules to raise base cash wages for tipped employees (different schedules for large and other employers) until the tipped cash wage equals the general minimum, at which point tipped employees must be paid the full minimum wage and the separate tipped-wage rules are repealed. It raises the base wage for newly hired employees under age 20 on a multi-year schedule and schedules repeal of the separate youth-hire wage when it equals the general minimum. For workers paid under special certificates because of disabilities, the bill sets a multi-year transition to bring those wages up, stops issuing new special certificates, offers transition assistance, and ends the special-certificate authority once those wages reach the general minimum. The bill also adds incarcerated workers to the Act's definition of "employee," clarifies that certain costs (board, lodging) and court-imposed fees should not be counted as wages for incarcerated workers, and amends penalty language related to tips.

The bill specifies that, unless otherwise noted, its provisions take effect on the first day of the calendar year after the law is enacted.

What it means for you#

  • If you are a worker covered by the federal minimum wage, your employer must begin paying at least the scheduled amounts during the phase-in and, once the target is reached, the wage will be tied to two-thirds of the national median hourly wage determined by the Bureau of Labor Statistics.
  • If you work for a large employer (as defined in the bill), your employer follows the faster wage schedule that reaches $25 per hour by 2031 unless the median-wage rule sets a lower amount for a given year.
  • If you are a tipped worker, your employer must pay a rising base cash wage under the bill's schedule; once that cash wage equals the general minimum for your employer type, tipped workers will receive the full minimum wage and the separate tipped-wage rules end.
  • If you are under 20 and newly hired, you will be paid an increasing base rate until that rate equals the general minimum, at which point the separate youth rate ends.
  • If you are a worker with a disability employed under a special certificate, your wage will follow a multi-year raise; the Department of Labor will stop issuing new special certificates and will offer technical assistance; the special-certificate authority ends when those wages reach the general minimum.
  • If you are an incarcerated worker, the bill treats you as an "employee" for purposes of the Act; the bill says certain costs and court-imposed fees should not be counted as part of wages paid to incarcerated workers.

Expenses#

No publicly available information on federal cost estimates or budgetary effects is included in the bill text. The bill text does not include a Congressional Budget Office (CBO) score or other cost figures.

Proponents' View#

The bill's findings and purpose (as stated in the text) say work should pay a living wage and the federal minimum should align with the cost of living. It says a minimum of at least $25 per hour is a conservative step toward that goal. The text also states that large, highly profitable corporations have the greatest capacity to raise wages and should lead the transition, that tying the minimum to a share of the national median wage prevents erosion of purchasing power, and that a minimum wage aligned with median wages will strengthen economic security, reduce reliance on public assistance, and promote broad-based growth.

Opponents' View#

No publicly available information on opponents' views is included in the bill text or accompanying metadata.