Bills of Congress June 10, 2025 by U.S. Congress

S.2013 - Higher Wages for American Workers Act of 2025 (119th Congress)

Summary

The "Higher Wages for American Workers Act of 2025" proposes to amend the Fair Labor Standards Act of 1938, increasing the federal minimum wage to $15 per hour. This increase would take effect on January 1st of the year following the bill's enactment. Subsequent annual increases would be determined by the Secretary of Labor, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Expected Effects

If enacted, the bill would directly raise the wages of minimum wage earners. It also mandates annual adjustments based on inflation, aiming to maintain the real value of the minimum wage over time. This could lead to increased consumer spending and potentially stimulate economic activity.

Potential Benefits 4/5

* **Increased earnings for low-wage workers:** Directly improves the financial stability of individuals and families earning minimum wage.
* **Potential stimulus to the economy:** Increased wages could lead to higher consumer spending.
* **Reduced poverty:** Higher minimum wage may lift some families out of poverty.
* **Inflation Adjustment:** Protects the minimum wage from erosion due to inflation.
* **Improved worker morale and productivity:** Fairer wages can lead to increased job satisfaction and productivity.

Most Benefited Areas:

Labor Rights & Worker Conditions ★ ★ ★ ★ ★

Public Health & Healthcare Access ★ ★ ★ ★ ★

Social Equity & Poverty Reduction ★ ★ ★ ★ ★

Potential Disadvantages

* **Potential job losses:** Businesses, especially small businesses, may reduce staff to offset increased labor costs.
* **Increased prices:** Businesses may raise prices to cover higher wage expenses, leading to inflation.
* **Reduced competitiveness:** Higher labor costs could make American businesses less competitive in the global market.
* **Automation:** Businesses may invest in automation to reduce reliance on minimum wage employees.
* **Disproportionate impact on small businesses:** Small businesses may struggle more than larger corporations to absorb the increased costs.

Most Disadvantaged Areas:

Business Prosperity & Innovation ★ ★ ★ ★ ★

Constitutional Alignment 4/5

The bill falls under the power of Congress to regulate commerce, as outlined in Article I, Section 8, Clause 3 (the Commerce Clause) of the U.S. Constitution. The Fair Labor Standards Act of 1938, which this bill amends, was also enacted under the authority of the Commerce Clause. The Constitution does not explicitly address minimum wage, leaving it to legislative discretion within the bounds of its enumerated powers.

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).