Sponsors (3)
The bill raises incomes for low-wage workers and preserves those gains with annual inflation adjustments, while imposing higher labor and program costs that could squeeze small businesses, raise consumer prices, and increase federal spending.
Low-wage workers will see their hourly pay rise to $15.00 on the first January 1 after enactment.
Low- and middle-income households will have minimum wages that keep pace with inflation because the federal minimum is indexed annually to the CPI‑W.
Households and employers gain predictability from scheduled annual adjustments, reducing the need for frequent legislative changes and aiding household and business budgeting.
Small businesses may face materially higher labor costs that could lead to reduced hiring, cut worker hours, or business closures.
Consumers — particularly middle-class families — may face higher prices as businesses pass increased payroll costs through to customers.
Taxpayers and federal programs could incur higher costs because federal contractors and government employers will pay the raised minimum wage.
Based on analysis of 3 sections of legislative text.
Sets a federal minimum wage floor of $15.00 per hour effective January 1 of the first calendar year after enactment and requires the Department of Labor to adjust the minimum wage annually. Each September 30 the Secretary must calculate the next January 1 minimum wage by applying the year-over-year percentage change in the CPI‑W (or successor index) for the 12-month period ending the previous July, then round the result to the nearest $0.05.
Introduced June 10, 2025 by Joshua David Hawley · Last progress June 10, 2025