H.R.122 - Original Living American Wage Act; Original LAW Act (119th Congress)
Summary
H.R.122, the Original Living American Wage Act, proposes amendments to the Fair Labor Standards Act to incrementally raise the federal minimum wage, reaching $26.59 per hour by 2030. After 2030, the minimum wage would be adjusted every 7 years based on the Federal supplemental poverty threshold for a renter family of four with two children, as determined by the Bureau of Labor Statistics. The bill also includes findings regarding poverty levels and the inadequacy of the current minimum wage to cover basic living expenses.
Expected Effects
If enacted, this bill would significantly increase the minimum wage, potentially impacting low-wage workers and businesses. The automatic adjustments every seven years after 2030 would tie the minimum wage to a specific poverty threshold, aiming to ensure a living wage. This could lead to increased labor costs for employers and potential adjustments in pricing and employment levels.
Potential Benefits
- Increased income for low-wage workers: The phased increase to $26.59 per hour by 2030 would substantially raise the income of minimum wage earners.
- Poverty reduction: By tying the minimum wage to the supplemental poverty threshold, the bill aims to reduce poverty among working families.
- Improved housing affordability: The bill acknowledges the housing affordability crisis and seeks to ensure that minimum wage workers can afford housing.
- Economic stimulus: Increased wages could lead to increased consumer spending, stimulating economic growth.
- Enhanced worker morale and productivity: Fairer wages can improve worker morale and productivity.
Potential Disadvantages
- Increased labor costs for businesses: Businesses, particularly small businesses, may struggle to absorb the increased labor costs, potentially leading to job losses or price increases.
- Inflationary pressures: Higher wages could contribute to inflationary pressures, potentially eroding the purchasing power of consumers.
- Reduced competitiveness: Businesses in states with higher minimum wages may become less competitive compared to those in states with lower minimum wages.
- Potential for automation: Some businesses may choose to automate tasks to reduce labor costs, leading to job displacement.
- Uncertainty for businesses: The automatic adjustments every seven years could create uncertainty for businesses, making it difficult to plan for the future.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution, which empowers Congress to "promote the general Welfare." Article I, Section 8, Clause 3, grants Congress the power to regulate commerce, which could be interpreted to include setting a minimum wage that affects interstate commerce. The proposed legislation does not appear to infringe upon any specific constitutional rights or limitations. However, debates may arise regarding the extent of federal power over wage regulation within states.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).