Sponsor
Norma Judith Torres
Representative · D-CA
Representative · D-CA
The bill substantially raises and preserves pay for low-wage workers through scheduled increases and indexing, improving incomes and predictability, while imposing higher labor and compliance costs that could reduce hiring, prompt employer adjustments, and push up consumer prices.
Low-wage workers (including many low-income individuals and some middle-class families) will see phased minimum-wage increases to $15.00 (2027), $17.50 (2028), and $20.00 (2029) with automatic annual indexing to the BLS median hourly wage, raising take-home pay and helping preserve purchasing power over time.
Workers, employers, and planners gain predictability from automatic annual adjustments, reducing legislative uncertainty about future wage floors and aiding business and household planning.
Small businesses and other employers will face materially higher labor costs, which could reduce hiring, compress margins, or be passed on to consumers through higher prices.
Some employers may offset higher wages by cutting hours, eliminating positions, accelerating automation, or trimming benefits, which could harm affected workers' total earnings and job prospects.
Higher payroll costs across employers could translate into higher consumer prices, raising the cost of living for households, including taxpayers and middle-class families.
Based on analysis of 2 sections of legislative text.
Phases the federal minimum wage to $15 (2027), $17.50 (2028), $20 (2029) and then indexes it annually to BLS median hourly wage growth.
Official title: To amend the Fair Labor Standards Act of 1938 to increase the minimum wage.
Introduced September 3, 2026 by Norma Judith Torres · Last progress September 3, 2026
Raises the federal minimum wage in fixed steps and then ties future increases to wage growth. The law sets the minimum wage at $15.00 on January 1, 2027; $17.50 on January 1, 2028; $20.00 on January 1, 2029; and requires annual adjustments thereafter based on the change in the BLS median hourly wage for all employees, rounded to the nearest $0.05. The Secretary (via the Bureau of Labor Statistics) must calculate and publish each year’s new rate in advance so it takes effect on January 1. The annual adjustment cannot be lower than the current statutory rate and will rise by the percentage change in the BLS median hourly wage for all employees.