H.R. 10294: Better Pay for American Workers Act

This bill would raise the federal minimum wage in stages and then tie future increases to wage growth over time.

What changes at first

• Starting January 1, 2027, the federal minimum wage would become $15.00 per hour.
• Starting January 1, 2028, it would rise to $17.50 per hour.
• Starting January 1, 2029, it would rise to $20.00 per hour.

What happens after that

Beginning January 1, 2030, and every year after that, the minimum wage would no longer be set to a fixed dollar amount in the law. Instead, the Secretary of Labor would set the new minimum wage based on changes in the median hourly wage of all employees, using data from the Bureau of Labor Statistics.

How the future wage would be calculated

• The new minimum wage could not go below the amount already in effect.
• It would increase by the annual percentage change in the median hourly wage, if there is one.
• The result would be rounded to the nearest $0.05.

What this means in plain language

The bill would make the federal minimum wage increase over several years to $20 an hour by 2029, then automatically adjust it each year afterward so that it generally keeps pace with the typical wage paid to workers nationwide.

Relevant Companies

• MCD — McDonald's could face higher labor costs because many of its workers are paid near the minimum wage.
• SBUX — Starbucks could see higher wage expenses for hourly store employees.
• WEN — Wendy's could be directly affected through increased payroll costs at company-owned and franchise locations.
• YUM — Yum! Brands could be affected through labor costs at restaurants operating under its brands.
• DG — Dollar General could face higher wages for store employees, many of whom are paid near the current minimum wage.
• FIVE — Five Below could be affected because retail workers at lower wage levels may need pay increases.
• TGT — Target could experience higher labor costs across its hourly workforce.
• WMT — Walmart could be affected by higher wages for store and warehouse workers, especially in lower-paid roles.