Bills of Congress May 29, 2025 by U.S. Congress

H.R.3662 - Labor Income Fairness and Transparency Act (119th Congress)

Summary

H.R.3662, the Labor Income Fairness and Transparency Act (LIFT Act), proposes amendments to the Fair Labor Standards Act of 1938. The bill aims to increase the federal minimum wage incrementally, eliminate subminimum wages for certain categories of workers, and enhance protections for tipped employees. It also includes provisions for civil penalties, assistance to states in enforcing wage laws, and the establishment of a National Advisory Committee on the Hospitality Industry. Finally, it seeks to make permanent certain improvements to the Earned Income Tax Credit (EITC).

Expected Effects

The likely effect of this bill would be a significant increase in the wages of low-income workers. This could lead to increased consumer spending and potentially reduce poverty. However, it could also lead to increased labor costs for businesses, potentially resulting in price increases or reduced employment.

Potential Benefits

- Increased wages for low-income workers, potentially improving their standard of living.
- Elimination of subminimum wages, ensuring fairer compensation for youth, student learners, and individuals with disabilities.
- Enhanced protections for tipped employees, ensuring they receive a fair wage and retain their tips.
- Increased civil penalties for violations of the Fair Labor Standards Act, deterring wage theft and other labor law violations.
- Permanent improvements to the Earned Income Tax Credit (EITC), providing additional tax relief to low- and moderate-income families.

Most Benefited Areas:

Social Equity & Poverty Reduction ★ ★ ★ ★ ★

Labor Rights & Worker Conditions ★ ★ ★ ★ ★

Public Health & Healthcare Access ★ ★ ★ ★ ★

Potential Disadvantages

- Increased labor costs for businesses, potentially leading to price increases for consumers.
- Potential reduction in employment opportunities, as businesses may reduce staff or slow hiring to offset increased wage costs.
- Possible negative impact on small businesses, which may struggle to absorb the increased labor costs.
- The minimum wage increases may not keep pace with inflation in all areas of the country, reducing the real value of the wage increase over time.
- Some argue that eliminating subminimum wages could reduce employment opportunities for certain groups, such as individuals with disabilities.

Most Disadvantaged Areas:

Business Prosperity & Innovation ★ ★ ★ ★ ★

Constitutional Alignment

★ ★ ★ ★ ★

The bill aligns with the general welfare clause of the Constitution, as it aims to improve the economic well-being of low-income workers. Congress has the power to regulate interstate commerce, which includes setting minimum wage standards (Article I, Section 8, Clause 3). The proposed changes to the EITC fall under Congress's power to lay and collect taxes (Article I, Section 8, Clause 1). However, some may argue that the extent of federal intervention in wage regulation could infringe upon states' rights.

Impact Assessment: Things You Care About

This action has been evaluated across 19 key areas that matter to citizens. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).