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Living Wage Act: New Minimum Wage Calculation Rules

This act aims to increase the minimum wage in the U.S. to ensure full-time workers earn above the poverty line for a family of four. These changes could improve the financial stability of many families, making it easier to cover basic living expenses like housing and food.
Key points
The minimum wage will be calculated based on the federal poverty threshold for a family of four, plus 25.5%.
The new minimum wage rate will be determined and published every four years, starting September 1, 2023.
The act prevents the minimum wage from being lowered if new calculations result in a rate lower than the current one.
States and local governments can still set higher minimum wage requirements than the federal one.
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Additional Information
Print number: 118_HR_122
Sponsor: Rep. Green, Al [D-TX-9]
Process start date: 2023-01-09