H.R. 8555 — Living Wage For All Act

This section states congressional findings on the need to align the Federal minimum wage with the cost of living and sets the purpose of the Act to raise the wage to two-thirds of the national median hourly wage, including attainment of a $25 hourly rate, with large corporations leading the transition and other employers receiving additional adjustment time.

This section defines a large employer as any employer with annual gross revenues of $1,000,000,000 or more or that employs 500 or more employees nationwide, as determined by the Secretary of Labor, and defines an other employer as any employer that does not meet the large employer criteria.

This section increases the federal minimum wage under the Fair Labor Standards Act of 1938. Large employers must pay each employee at least $12.00 per hour beginning January 1, 2026, $15.00 per hour beginning January 1, 2027, $18.00 per hour beginning January 1, 2028, $20.00 per hour beginning January 1, 2029, $22.50 per hour beginning January 1, 2030, and $25.00 per hour beginning January 1, 2031 (from the current $7.25 per hour), subject to the wage cap determined under subsection (h). Other employers must pay each employee at least $12.00 per hour beginning January 1, 2026, $14.00 per hour beginning January 1, 2027, $16.00 per hour beginning January 1, 2028, $18.00 per hour beginning January 1, 2029, $20.00 per hour beginning January 1, 2030, $20.60 per hour beginning January 1, 2031, and continuing with annual $0.60 increases through $25.00 per hour beginning January 1, 2038 (from the current $7.25 per hour), subject to the wage cap determined under subsection (h).

This section establishes a new median wage standard for the federal minimum wage under the Fair Labor Standards Act of 1938. It sets the minimum wage equal to two-thirds of the national median hourly wage of all employees, as determined by the Bureau of Labor Statistics. During the phase-in period, the wage is capped at two-thirds of the median if the scheduled increase would exceed that level, and it continues to rise by the lesser of $1.00 or the amount needed to reach the target if it has not yet done so at the end of the phase-in. Once the two-thirds ratio is attained, the minimum wage is automatically adjusted each year to maintain that ratio, using BLS data and CBO projections where necessary, with each annual determination published at least 90 days before its effective date.

This section revises the minimum cash wage requirements for tipped employees under the Fair Labor Standards Act of 1938 and phases out the separate tipped minimum wage. For tipped employees of large employers, it sets the cash wage at $6.00 per hour in the first year after the effective date, increasing to $9.00, $12.00, $15.00, and $18.00 per hour in each of the next four years before reaching the full minimum wage under section 6(a)(1). For tipped employees of other employers, it sets the cash wage at $4.75 per hour initially, then increases it by the lesser of $1.75 or the amount needed to reach the full minimum wage each year until parity, after which the full minimum wage applies. This section also requires that employees retain all tips received and directs employers to inform employees of this right. It further amends penalty provisions to cover the use of tips in violation of the Act. The separate tipped minimum wage is repealed one day after the cash wage reaches the full minimum wage for each employee.

This section increases the base minimum wage for newly hired employees under age 20 to $6.00 per hour (from $4.25) for the first year after the effective date of the Living Wage For All Act. It then requires annual increases by the lesser of $1.75 or the amount needed to reach the regular minimum wage under section 6(a)(1) until parity is achieved, after which the youth wage equals the regular minimum wage. (1) The separate youth minimum wage is repealed the day after parity is reached. (2) Related conforming changes are made to the required Federal Register notice of minimum wage rates.

This section directs the Secretary of Labor to publish notice in the Federal Register and on the Department of Labor website announcing any increase in the required wage under the Fair Labor Standards Act minimum wage provisions, not later than 60 days prior to the effective date of the increase.

This section revises the special minimum wage provisions for individuals with disabilities under section 14(c) of the Fair Labor Standards Act of 1938. It increases the wage rate to $5.00 per hour for the first year after the effective date, then by the lesser of $1.75 or the amount needed to reach the rate under section 6(a)(1) in each subsequent year until parity, and thereafter at the full rate under section 6(a)(1) (from the prior subminimum wage structure). It prohibits the Secretary from issuing new special certificates after the date of enactment and requires the Secretary to provide technical assistance to employers and information (including referrals to competitive integrated employment resources) to affected workers. The authority to issue special certificates sunsets the day after the wage rate first equals the rate under section 6(a)(1).

This section expands the definition of “employee” under the Fair Labor Standards Act of 1938 to include any individual employed as an incarcerated worker by a public agency operating a correctional facility or by a private entity operating such a facility under contract with a public agency. This section also revises the definition of “wage” for incarcerated workers by excluding the cost of board, lodging, or other facilities and any amounts deducted to pay court-imposed fees. In addition, this section defines “incarcerated worker” to cover individuals performing work in prison industries, work release programs, UNICOR, public works, facility maintenance, or for private entities, and defines “court-imposed fee” to include surcharges, attorney fees, filing fees, and similar costs arising from a criminal conviction (but excluding child support, victim compensation, civil judgments, and criminal fines).