Sponsors (5)
The bill substantially raises and indexes the federal minimum wage and phases out subminimums to boost earnings and long-term wage growth for low-wage and vulnerable workers, but it also imposes significant added labor costs and compliance complexity that could lead to higher consumer prices, strain public budgets, legal disputes, and reduced entry‑level or specialized employment opportunities.
Low-wage workers — including tipped workers, youth, and workers with disabilities — will receive substantially higher pay because the bill raises the federal minimum (an immediate floor and phased increases reaching $25/hour) and eliminates or phases out subminimum wages and certificates toward parity.
Workers will see wages better preserve purchasing power over time because the statute indexes future minimums to a share of the national median wage and creates a predictable statutory adjustment schedule.
Employers and workers gain advance notice and predictability — the bill requires annual publication of statutory amounts and at least 60 days' notice before increases — helping payroll planning and reducing sudden disruption.
Small and medium-sized employers face materially higher payroll costs that could lead to reduced hiring, cuts to hours, layoffs, closures, or accelerated automation as firms adjust to larger wage increases.
Households may see higher prices as businesses pass increased labor costs through to consumers, raising the cost of living for middle-class and lower-income families.
Entry-level job opportunities for young workers and employment programs for people with disabilities may decline as employers reduce youth hiring, cut entry-level roles, or change business models when subminimums and certificates phase out.
Based on analysis of 10 sections of legislative text.
Phases federal hourly minimum wages up to $25/hr (faster for large employers), indexes future increases to two‑thirds of median wage, and phases out tipped, youth, and disability subminimum wages.
Official title: Place Federal minimum wage on a durable path toward a living wage aligned with the national median wage, to require large, highly profitable corporations to lead the transition, to end all subminimum wages, and for other purposes.
Introduced July 14, 2026 by Christopher Murphy · Last progress July 14, 2026
Raises the federal hourly minimum wage on a phased timetable that gets large employers to $25/hour in five years and smaller employers to $25/hour in twelve years, then indexes future increases to a formula tied to two‑thirds of the national median hourly wage. The bill phases out long-standing subminimum wages by creating graduated schedules and parity triggers for tipped workers, youth workers, and workers paid under special disability certificates, requires employer notice and Department of Labor publication duties, and bars new disability certificates while funding transition assistance. The law sets a statutory definition of “large employer,” multiple staged increase schedules keyed to employer size, an annual publication deadline for the wage index amount, a 60‑day DOL notice rule before any increase, and trigger-based repeals or sunsets that end subminimum wage authorities once parity with the general minimum wage is reached.