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Text Versions

Text as it was Introduced in Senate
June 10, 2025
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Sponsors (3)

Related Legislation

No Related Legislation

Amendments

No Amendments

AI Insights

Analyzed 2 of 2 sections

Summary

Raises the federal hourly minimum wage to $15 and requires automatic annual adjustments for inflation. The Department of Labor Secretary will compute a new wage each September using the Consumer Price Index and round the result to the nearest $0.05. The law (and its amendments) becomes effective on the first January 1 that begins after the date of enactment.

Key Points

  • Establishes a $15.00 federal hourly minimum wage.
  • Requires the Secretary of Labor to compute an annual CPI-based wage adjustment each September.
  • Annual wage adjustments are rounded to the nearest $0.05.
  • The law takes effect on the first January 1 after enactment.
  • Modifies the Fair Labor Standards Act's minimum wage provision to make inflation indexing automatic.
  • Applies to workers covered by the FLSA and relies on existing FLSA compliance and enforcement frameworks.
  • Does not include phased increases, exemptions, or regional differentials in the provided text.
  • Reduces the need for future congressional action to maintain inflation-adjusted minimum wages.

Categories & Tags

Agencies
the Secretary
BLS
Subjects
Labor
minimum wage
sales
inflation adjustment
statutory amendment

Provisions

6 items

Amends section 6(a)(1) of the Fair Labor Standards Act (29 U.S.C. 206(a)(1)) to require a minimum wage of not less than $15 starting on January 1 of the first year that begins after the date of enactment.

amendment
$15Affects: Workers covered by 29 U.S.C. 206(a)(1)

Provides that beginning on January 1 of the second year that begins after the date of enactment, and each January 1 thereafter, the minimum wage will be the amount determined by the Secretary under new subsection (h).

requirement
Affects: Workers covered by 29 U.S.C. 206(a)(1)

Adds subsection (h) to section 6 (29 U.S.C. 206) requiring the Secretary to determine the minimum wage amount on September 30 of the first year that begins after enactment and on each September 30 thereafter.

amendment
Affects: The Secretary (to perform the determination)

Specifies the method for the Secretary's annual determination: increase the amount in effect under subsection (a)(1) on the date of determination by the percentage increase, if any, in the Consumer Price Index for Urban Wage Earners and Clerical Workers (or a successor index) for the 12-month period ending with July of the year in which the determination occurs.

requirement
Affects: The Secretary; index published by the Bureau of Labor Statistics

Requires that the wage determined under subsection (h) be rounded to the nearest multiple of $0.05 if the calculated amount is not already a multiple of $0.05.

requirement
Affects: The Secretary
effective dates
Affected Groups
Employees (workers)
Low-Income Individuals
Small Businesses
Private businesses and organizations
+1 more

Impact Analysis

Workers: Directly increases pay for employees currently earning below $15 per hour, boosting incomes for low-wage and part-time workers. Low-income households likely see higher earnings and reduced poverty risk for covered workers. Employers: Businesses that employ minimum-wage workers will face higher labor costs; effects may include higher prices for goods/services, reductions in hours or staff, or adjustments to hiring. Small businesses are often more sensitive to wage cost increases than large firms. Government employers: State and local governments that employ low-wage workers may incur higher payroll costs. Administration: The Department of Labor gains an annual administrative task to calculate and publish the CPI-based wage each September; employers must track and implement the new rate each calendar year. Labor markets/economy: Automatic indexing reduces the need for periodic legislative increases and helps preserve purchasing power of the minimum wage over time. The law's economic effects on employment, hours, and prices depend on broader labor market conditions and are uncertain; different studies show varying short- and medium-term impacts. Compliance/enforcement: Existing FLSA enforcement mechanisms (Wage and Hour Division investigations, penalties for violations) would govern implementation; state minimum wages that exceed the federal rate would continue to apply for covered workers under existing rules.

United StatesSenate Bill 2013S 2013

Higher Wages for American Workers Act of 2025

Labor and Employment
  1. senate
  2. house
  3. president

Last progress June 10, 2025 (8 months ago)

Introduced on June 10, 2025 by Joshua David Hawley

House Votes

Vote Data Not Available

Senate Votes

Pending Committee
June 10, 2025 (8 months ago)

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Presidential Signature

Signature Data Not Available