With annual cost-of-living increases based on inflation, the federal minimum wage would be raised to $15 per hour under a policy that has been advocated by both the Democratic and Republican parties.
The “Higher Wages for American Workers Act” is a measure that was co-sponsored by Senators Josh Hawley, a Republican from Missouri, and Peter Welch, a Democrat from Vermont. This bill would raise the federal minimum wage for non-exempt workers from its current level of $7.25 per hour.
“For decades, working Americans have seen their wages flatline,” Hawley stated on Tuesday in a news release along with Welch.
“One major culprit of this is the failure of the federal minimum wage to keep up with the economic reality facing hardworking Americans every day,” Hawley continued.
As a result of inflation and rising prices, Welch stated that it is becoming increasingly difficult for families to afford the necessities of life.
“We’re in the midst of a severe affordability crisis, with families in red and blue states alike struggling to afford necessities like housing and groceries,” Welch stated.
“A stagnant federal minimum wage only adds fuel to the fire,” he added. “Every hardworking American deserves a living wage that helps put a roof over their head and food on the table — $7.25 an hour doesn’t even come close.”
“Times have changed, and working families deserve a wage that reflects today’s financial reality,” Welch continued.
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According to Hawley, the federal minimum wage now is lower than what an employee would have made in 1940 after accounting for inflation.
The proposed federal minimum wage rise would go into effect on January 1st and provide for cost-of-living adjustments that keep pace with inflation in the years to follow.
Twelve states maintained the federal minimum wage in 2024, despite the fact that many states have minimum wage laws that are higher than the federal minimum wage as it is today and is set to rise.
Walmart, which has been paying its employees at least $14 per hour and frequently more since 2023, is one of many big businesses that have raised the minimum wage.
In 2021, President Joe Biden mandated that contract workers receive at least $15 per hour from the federal government.
In 2022, California legislators increased the minimum wage for certain fast-food employees to as much as $22 per hour.
