Original Living Wage Act This bill increases the federal minimum wage to the minimum hourly wage sufficient for a person working for 40 hours per week, 52 weeks per year, to earn an annual income 25.5% higher than the federal poverty threshold for a four-person household, with two children under age 18, and living in the 48 contiguous states. (Under current poverty thresholds, the national minimum wage would be set at approximately $15.64 per hour.) The Department of Labor must determine the minimum wage rate by June 1, 2023, and review it every four years. Labor may not adjust the minimum wage to a lower rate.
Impact
If enacted, HB122 would have significant implications for working-class families and the economy. By tying the minimum wage to the federal poverty threshold, the bill aims to alleviate poverty among full-time workers, allowing them to afford basic necessities. Proponents argue that adjusting the minimum wage to reflect living costs will improve the quality of life for millions of Americans and reduce reliance on government assistance programs. Furthermore, it encourages a broader discussion about the viability of living wages in relation to the cost of living in various regions across the country.
Summary
House Bill 122, known as the Original Living Wage Act, proposes to amend the Fair Labor Standards Act to set the federal minimum wage based on the federal poverty threshold for a family of four. The bill mandates that the minimum wage must be sufficient for a full-time worker to earn an income that is at least 25.5% higher than the federal poverty threshold, specifically for a family consisting of two adults and two children. Based on current estimates, this would set the national minimum wage at approximately $15.64 per hour, and would require adjustments every four years as income and cost of living change.
Contention
Despite its potential benefits, HB122 faces opposition from certain legislative members and organizations. Opponents argue that increasing the minimum wage could lead to job losses, particularly in small businesses, as employers might struggle to pay higher wages. Additionally, there are concerns regarding the inflationary effects such an increase could have on the economy, with critics fearing it might drive up prices across various sectors. Balancing the need for a livable wage against potential economic impacts continues to be a point of contention among lawmakers and stakeholders.
Original Living American Wage Act or the Original LAW ActThis bill increases the federal minimum wage according to a formula specified in the bill.First, the bill increases the minimum hourly wage to $10.59 beginning on January 1, 2026, and increases the minimum hourly wage by $4 annually from January 1, 2027, through January 1, 2030.Next, beginning on January 1, 2031, the Department of Labor shall increase the minimum hourly wage every seven years according to a specified formula. The formula establishes the minimum hourly wage as the wage sufficient for a person working 1,799 hours per year (approximately 35 hours per week) to earn an annual income that is 40% higher than the federal supplemental poverty threshold for a renter family of four, with two children under the age of 18, as published by the Bureau of Labor Statistics for the preceding year. However, if this formula results in a reduction, the minimum hourly wage may not be lowered.
Repeals the law that allowed employers to pay some of their minor employees and employees who are full time students and not attained the age of nineteen (19), less than minimum hourly wages, requiring them to be paid a minimum hourly wage.
Commencing 1/1/25, gradually increases the minimum wage for employees receiving gratuities from the current ($3.89) to ($14.95) by 1/1/29 and on 1/1/30 the minimum wage shall be no less than the minimum wage established by the minimum wage law.