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A Democratic senator introduced in the United States Congress a proposal to raise the federal minimum wage to $25 per hour in stages. The initiative would affect millions of workers and businesses across the country, and would imply the largest increase in the wage floor in the country’s history.
The proposal was promoted by Senator Chris Murphy, of Connecticut, along with lawmakers from both chambers. The federal minimum wage has been frozen at $7.25 per hour since 2009, when Congress last updated it.
What does the bill seeking a $25 per hour minimum wage propose?
The bill, called Living Wage For All Act, proposes raising the federal minimum wage from $7.25 to $12 per hour in the first year. From there, the floor would gradually rise until it reaches $25 per hour.
The rollout would have two deadlines depending on the size of the employer. Once the cap is reached, future increases would be tied to two-thirds of the national average wage to avoid new freezes:
- Large companies: would have to reach $25 per hour by 2032.
- Other employers: would have until 2039 to adapt.
- Other changes: the bill would gradually eliminate reduced wages for tipped workers, young people, and people with disabilities.
Who is affected by the minimum wage change and what happens now?
The impact would be broad: according to Senator Murphy’s office, 45% of workers in the United States currently earn less than $25 per hour. The measure targets that universe of lower-income employees, while the federal floor remains unchanged since 2009.
For now, this is a proposal that still has to move forward in Congress. At the same time, 34 states, territories and districts already have minimums above the federal level, according to the National Conference of State Legislatures, an organization that brings together state legislatures. The District of Columbia leads the list with $17.95 per hour and, among the states, Washington leads with $17.13.