Living Wage For All Act

This Act may be cited as the “Living Wage For All Act”.

(a) Findings.— Congress finds the following:

(1) It is a national priority that work pays a living wage to all workers and that the Federal minimum wage be aligned with the actual cost of living. The wage increases established by this Act, including the attainment of a $25 hourly wage, are steps toward that goal and shall be followed by continued adjustments to ensure that the minimum wage remains responsive to changes in wages and economic conditions over time.

(2) Based on the best available data, including wage data from the Bureau of Labor Statistics and economic projections from the Congressional Budget Office, a minimum wage of at least $25 per hour represents a conservative baseline step toward aligning wages with the cost of living nationwide.

(3) Large, highly profitable corporations have the greatest capacity to raise wages and should therefore lead the transition to higher wage standards before smaller employers.

(4) A Federal minimum wage aligned with median wages over the long-term ensures that wage standards rise with the economy, prevents future erosion of purchasing power, reduces reliance on public assistance, and promotes broad-based economic growth.

(b) Purpose.— The purpose of this Act is to place the Federal minimum wage on a durable path toward a living wage that remains indexed to wage growth thereafter, while requiring large corporations to lead the transition and providing additional adjustment time for other employers.

Section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C. 203) is amended by adding at the end the following:

“(z) Large employer means any employer that—

(1) has an annual gross revenue of $1,000,000,000 or more; or

(2) employs 500 or more employees throughout the United States.”.

Section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to read as follows:

“(1) except as otherwise provided in this section—

(A) for purposes of such an employer that is a large employer, not less than—

(i) $12.00 per hour, beginning on the effective date under section 10 of the Living Wage For All Act;

(ii) $15.00 per hour, beginning 1 year after such effective date;

(iii) $18.00 per hour, beginning 2 years after such effective date;

(iv) $20.00 per hour, beginning 3 years after such effective date;

(v) $22.50 per hour, beginning 4 years after such effective date;

(vi) $25.00 per hour, beginning 5 years after such effective date; and

(vii) beginning on the date that is 6 years after such effective date, and annually thereafter, the greater of—

(I) amount in effect under this subparagraph for the preceding year; or

(II) the amount described in subsection (h); and

(B) for purposes of an employer that is not a large employer, not less than—

(i) $12.00 per hour, beginning on the effective date under section 10 of the Living Wage For All Act;

(ii) $14.00 per hour, beginning 1 year after such effective date;

(iii) $16.00 per hour, beginning 2 years after such effective date;

(iv) $18.00 per hour, beginning 3 years after such effective date;

(v) $20.00 per hour, beginning 4 years after such effective date;

(vi) $20.60 per hour, beginning 5 years after such effective date;

(vii) $21.20 per hour, beginning 6 years after such effective date;

(viii) $21.80 per hour, beginning 7 years after such effective date;

(ix) $22.40 per hour, beginning 8 years after such effective date;

(x) $23.00 per hour, beginning 9 years after such effective date;

(xi) $23.60 per hour, beginning 10 years after such effective date;

(xii) $24.20 per hour, beginning 11 years after such effective date;

(xiii) $25.00 per hour, beginning 12 years after such effective date; and

(xiv) beginning on the date that is 13 years after such effective date, and annually thereafter, the greater of—

(I) amount in effect under this subparagraph for the preceding year; or

(II) the amount described in subsection (h).”.

Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) is amended by adding at the end the following:

“(h) Determination based on the national median hourly wage.—

(1) In general.— The amount described in this subsection is the amount published by the Secretary under paragraph (2) for purposes of the relevant calendar year.

(2) Determination.— For each calendar year beginning 6 years after the date of enactment of the Living Wage For All Act, the Secretary shall publish, not later than October 1 of the preceding calendar year, the amount for purposes of this subsection that is equal to two-thirds of the median hourly wage for all employees as provided in the most recently published Current Population Survey by the Bureau of Labor Statistics as of the date of publication.”.

(a) Base minimum wage for tipped employees and tips retained by employees.— Section 3(m)(2)(A)(i) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)(i)) is amended to read as follows:

“(i) the cash wage paid such employee, which for purposes of such determination shall be not less than—

(I) for purposes of such an employer that is a large employer—

(aa) $6.00 an hour, beginning on the effective date under section 10 of the Living Wage For All Act;

(bb) $9.00 an hour, beginning 1 year after such effective date;

(cc) $12.00 an hour, beginning 2 years after such effective date;

(dd) $15.00 an hour, beginning 3 years after such effective date;

(ee) $18.00 an hour, beginning 4 years after such effective date; and

(ff) beginning 5 years after such effective date, and annually thereafter, the minimum wage in effect under section 6(a)(1)(A); and

(II) for purposes of an employer that is not a large employer—

(aa) $4.75 an hour, beginning on the effective date under section 10 of the Living Wage For All Act; and

(bb) beginning 1 year after such effective date, and annually thereafter, an hourly wage that is the lesser of—

(AA) an hourly wage equal to the amount determined under this subclause for the preceding year increased by $1.75; or

(BB) the minimum wage rate in effect under section 6(a)(1)(B); and”.

(b) Tips retained by employees.— Section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)) is amended—

(1) in the second sentence of the matter following clause (ii), by striking “of this subsection, and all tips received by such employee have been retained by the employee” and inserting “of this subsection. Any employee shall have the right to retain any tips received by such employee”; and

(2) by adding at the end the following: “An employer shall inform each employee of the right and exception provided under the preceding sentence.”.

(c) Scheduled repeal of separate minimum wage for tipped employees.—

(1) Tipped employees.—

(A) In general.— Section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)), as amended by subsections (a) and (b), is further amended by striking the sentence beginning with “In determining the wage an employer is required to pay a tipped employee,” and all that follows through “of this subsection.” and inserting “The wage required to be paid to a tipped employee shall be the wage set forth in section 6(a)(1) for the relevant employer.”.

(B) Effective date.— The amendment made by subparagraph (A) shall take effect on the date that is 1 day after the date on which the minimum cash wage rate required under section 3(m)(2)(A)(i)(II)(bb) first equals the minimum wage in effect under section 6(a)(1)(B).

(2) Publication of notice for large employers.—

(A) In general.— Subsection (i) of section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as added by section 8 of the Living Wage For All Act, is amended by striking “subclauses (I) and” and inserting “subclause”.

(B) Effective date.— The amendment made by subparagraph (A) shall take effect on the date that is 1 day after the date on which the minimum cash wage rate required under section 3(m)(2)(A)(i)(I)(ff) takes effect.

(3) Publication of notice for other employers.—

(A) In general.— Subsection (i) of section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as added by section 8 of the Living Wage For All Act and amended by paragraph (2), is further amended by striking “or in accordance with subclause (II) of section 3(m)(2)(A)(i)”.

(B) Effective date.— The amendment made by subparagraph (A) shall take effect on the date described in paragraph (1)(B).

(d) Penalties.— Section 16 of the Fair Labor Standards Act of 1938 (29 U.S.C. 216) is amended—

(1) in the third sentence of subsection (b), by inserting “or used” after “kept”;

(2) in the seventh sentence of subsection (c), by inserting “or used” after “kept”; and

(3) in the second sentence of subsection (e)(2), by inserting “or used” after “kept”.

(a) Base minimum wage for newly hired employees who are less than 20 years old.— Section 6(g)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(g)(1)) is amended by striking “a wage which is not less than $4.25 an hour.” and inserting the following:

“(A) for the 1-year period beginning on the effective date under section 10 of the Living Wage For All Act, $6.00 an hour; and

(B) for each succeeding 1-year period beginning after the increase made pursuant to subparagraph (A)—

(i) for purposes of an employer that is a large employer, an hourly wage that is the lesser of—

(I) an hourly wage rate equal to the amount determined under this clause for the preceding year increased by $1.75; or

(II) the minimum wage rate in effect under section 6(a)(1)(A); and

(ii) for purposes of an employer that is not a large employer, an hourly wage that is the lesser of—

(I) an hourly wage rate equal to the amount determined under this clause for the preceding year increased by $1.75; or

(II) the minimum wage rate in effect under section 6(a)(1)(B).”.

(b) Scheduled repeal of separate minimum wage for newly hired employees who are less than 20 years old.—

(1) In general.— Section 6(g) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(g)), as amended by subsection (a), shall be repealed.

(2) Publication of notice.— Subsection (i) of section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as added by section 8 of the Living Wage For All Act, is amended by striking “or subsection (g)(1)”.

(3) Effective date.— The repeal and amendment made by paragraphs (1) and (2), respectively, shall take effect on the date that is 1 day after the first date on which—

(A) the hourly wage under section 6(g)(1)(B)(i) equals the minimum wage in effect under section 6(a)(1)(A); and

(B) the hourly wage under section 6(g)(1)(B)(ii) equals the minimum wage in effect under section 6(a)(1)(B).

Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as amended by this Act, is further amended by adding at the end the following:

“(i) Not later than 60 days prior to the effective date of any increase in a required wage determined under subparagraph (A) or (B) of subsection (a)(1) or subsection (g)(1) or in accordance with subclauses (I) and (II) of section 3(m)(2)(A)(i) or section 14(c)(1)(A), the Secretary shall publish in the Federal Register and on the website of the Department of Labor a notice announcing each increase in such required wage.”.

(a) Wages.—

(1) Transition to living wages for individuals with disabilities.— Subparagraph (A) of section 14(c)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)(1)) is amended to read as follows:

“(A) at a rate that is not less than—

(i) $5.00 an hour, for the 1-year period beginning on the effective date under section 10 of the Living Wage For All Act;

(ii) for each succeeding 1-year period beginning after the increase made pursuant to clause (i)—

(I) for purposes of an employer that is a large employer, an hourly wage that is the lesser of—

(aa) an hourly wage rate equal to the amount determined under this subclause for the preceding year increased by $1.75; or

(bb) the minimum wage rate in effect under section 6(a)(1)(A); and

(II) for purposes of an employer that is not a large employer, an hourly wage that is the lesser of—

(aa) an hourly wage rate equal to the amount determined under this subclause for the preceding year increased by $1.75; or

(bb) the minimum wage rate in effect under section 6(a)(1)(B); and

(iii) if applicable, the wage rate in effect on the day before the date of enactment of the Living Wage For All Act for the employment, under a special certificate issued under this paragraph, of the individual for whom the wage rate is being determined under this subparagraph,”.

(2) Prohibition on new special certificates; transition assistance.—

(A) In general.— Section 14(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)) is amended by adding at the end the following:

“(6) Prohibition on new special certificates.— Notwithstanding paragraph (1), the Secretary shall not issue a special certificate under this subsection to an employer that was not issued a special certificate under this subsection before the date of enactment of the Living Wage For All Act.

(7) Transition assistance.— Upon request, the Secretary shall provide—

(A) technical assistance and information to employers issued a special certificate under this subsection for the purposes of—

(i) assisting such employers to comply with this subsection, as amended by the Living Wage For All Act; and

(ii) ensuring continuing employment opportunities for individuals with disabilities receiving a special minimum wage rate under this subsection; and

(B) information to individuals employed at a special minimum wage rate under this subsection, which may include referrals to Federal or State entities with expertise in competitive integrated employment.”.

(B) Effective date.— The amendments made by this paragraph shall take effect on the date of enactment of this Act.

(3) Sunset.— Section 14(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)), as amended by paragraph (2), is further amended by adding at the end the following:

“(8) Sunset.— The authority to issue special certificates under paragraph (1) shall expire, and no special certificates issued under such paragraph shall have any legal effect, beginning on the date that is 1 day after the first date on which—

(A) the wage rate described in paragraph (1)(A)(ii)(I) equals the minimum wage in effect under section 6(a)(1)(A); and

(B) the wage rate described in paragraph (1)(A)(ii)(II) equals the minimum wage in effect under section 6(a)(1)(B).”.

(b) Publication of notice.—

(1) Amendment.— Subsection (i) of section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as added by section 8 of the Living Wage For All Act, is amended by striking “or section 14(c)(1)(A)”.

(2) Effective date.— The amendment made by paragraph (1) shall take effect on the day after the first date on which—

(A) the wage rate described in section 14(c)(1)(A)(ii)(I) equals the minimum wage in effect under section 6(a)(1)(A); and

(B) the wage rate described in section 14(c)(1)(A)(ii)(II) equals the minimum wage in effect under section 6(a)(1)(B).

Except as otherwise provided, this Act and the amendments made by this Act shall take effect on the first day of the calendar year that begins after the date of enactment of this Act.