Plain Language Summary
# Original LAW Act Summary **What It Would Do** The Original Living American Wage Act (HR 122) would increase the federal minimum wage, which has been $7.25 per hour since 2009. Under this bill, the minimum wage would jump to $10.59 per hour starting January 1, 2026, then increase by $4 per hour each year through 2030. After 2030, the bill establishes an automatic adjustment system that would recalculate the minimum wage every seven years based on a specific formula designed to ensure minimum wage workers can afford basic housing. **Who It Affects & Key Provisions** This bill would directly impact millions of American workers earning the minimum wage, as well as employers who would need to pay higher wages.
The automatic adjustment formula (starting in 2031) ties future minimum wage increases to the federal poverty threshold for a family of four, meaning the wage would adjust to help workers afford housing without falling below current levels. The bill is currently in committee and has not yet been voted on by the full House.
CRS Official Summary
Original Living American Wage Act or the Original LAW ActThis bill increases the federal minimum wage according to a formula specified in the bill.First, the bill increases the minimum hourly wage to $10.59 beginning on January 1, 2026, and increases the minimum hourly wage by $4 annually from January 1, 2027, through January 1, 2030.Next, beginning on January 1, 2031, the Department of Labor shall increase the minimum hourly wage every seven years according to a specified formula. The formula establishes the minimum hourly wage as the wage sufficient for a person working 1,799 hours per year (approximately 35 hours per week) to earn an annual income that is 40% higher than the federal supplemental poverty threshold for a renter family of four, with two children under the age of 18, as published by the Bureau of Labor Statistics for the preceding year. However, if this formula results in a reduction, the minimum hourly wage may not be lowered.
Latest Action
Referred to the House Committee on Education and Workforce.