H.R. 8555: Living Wage For All Act

This bill, known as the Living Wage For All Act, aims to improve the Federal minimum wage to align it more closely with the cost of living and national economic conditions. Here are the key components of the bill:

Minimum Wage Increase

The bill proposes a phased increase in the federal minimum wage for different categories of employers:

• **Large Employers:** Companies with annual gross revenues of $1 billion or more or that employ 500 or more employees must raise their minimum wage to:
• $12.00 per hour, starting January 1, 2026
• $15.00 per hour, starting January 1, 2027
• $18.00 per hour, starting January 1, 2028
• $20.00 per hour, starting January 1, 2029
• $22.50 per hour, starting January 1, 2030
• $25.00 per hour, starting January 1, 2031
• **Other Employers:** Businesses that do not meet the large employer criteria must raise their minimum wage to:
• $12.00 per hour, starting January 1, 2026
• $14.00 per hour, starting January 1, 2027
• $16.00 per hour, starting January 1, 2028
• $18.00 per hour, starting January 1, 2029
• $20.00 per hour, starting January 1, 2030
• $20.60 per hour, starting January 1, 2031
• $21.20 per hour, starting January 1, 2032
• $21.80 per hour, starting January 1, 2033
• $22.40 per hour, starting January 1, 2034
• $23.00 per hour, starting January 1, 2035
• $23.60 per hour, starting January 1, 2036
• $24.20 per hour, starting January 1, 2037
• $25.00 per hour, starting January 1, 2038

Alignment with Median Wage

The bill seeks to ensure that the minimum wage reaches a level equal to two-thirds of the national median hourly wage. Once this target is achieved, the minimum wage will be adjusted annually based on the national median wage to maintain this ratio.

Tipped Employees

The bill proposes that the minimum cash wage for tipped employees will gradually increase. For large employers, it will rise as follows:

• $6.00 per hour for the first year after the effective date
• $9.00 per hour in the second year
• $12.00 per hour in the third year
• $15.00 per hour in the fourth year
• $18.00 per hour in the fifth year
• After five years, they will receive the same minimum wage as other employees.

Other employers will see a similar structure but starting from a lower base wage.

Youth Workers

The bill removes the lower minimum wage for newly hired employees under the age of 20 and sets their wages to match the general minimum wage, phased in over time.

Workers with Disabilities

Individuals with disabilities will have their wage standards transitioned to meet the regular minimum wage standards over a designated period. New special certificates allowing employers to pay below minimum wage to individuals with disabilities will not be issued after this bill is enacted.

Incarcerated Workers

The bill includes provisions ensuring that incarcerated workers in public facilities or private contracts must also be paid at least the minimum wage in line with the established rates.

Effective Date

The amendments introduced by this Act are set to take effect on the first day of the calendar year that follows the bill's enactment.

Penalties and Compliance

The bill also outlines penalties for non-compliance with the new wage standards and establishes the procedures for ongoing adjustment announcements related to the wage changes.

Relevant Companies

• AAPL - Apple Inc. could see increased labor costs due to the requirement for higher wages for its retail and support staff.
• AMZN - Amazon.com, Inc. may face elevated wage expenditures across its extensive workforce, particularly in warehouse and logistic operations.
• MCD - McDonald's Corporation, operating numerous fast-food outlets, will likely incur higher personnel costs due to the wage increases affecting their hourly employees.
• TSLA - Tesla, Inc. could experience cost increases with assembly line and service staff wages rising significantly.