WASHINGTON, January 26 –In apress conference today, incoming Senate Budget Committee Chairman Bernie Sanders (I-Vt.) joined incoming Senate HELP Committee Chair Patty Murray (D-Wash.), House Committee on Education and Labor Chairman Bobby Scott (D-Va.),Congressional Progressive Caucus Chair Pramila Jayapal (D-Wash.), and Rep. Stephanie Murphy (D-Fla.) to announce the introduction of legislation raising the federal minimum wage to $15 by 2025.
The Raise the Wage Act of 2021 would increase the federal minimum wage to $15 in five steps over the next four years. Beginning in 2026, the federal minimum wage would be indexed to median wage growth.According to an independentanalysis conducted by the Economic Policy Institute, the Raise the Wage Act would increase wages for nearly 32 million Americans, including roughly a third of all Black workers and a quarter of all Latino workers.
“Let’s be clear.The $7.25 an hour federal minimum wage is a starvation wage.No person in America can make it on $8, $10, or $12 an hour.In the United States of America a job must lift workers out of poverty, not keep them in it.We must raise the minimum wage to a living wage—at least $15 an hour.And when we do that, not only will we be lifting millions of Americans out of poverty, we will be providing a raise to over 33 million workers,”said Senator Sanders.“We can no longer tolerate millions of workers not being able to afford to feed their families or pay the rent.The time for talk is over.No more excuses.It is time for Congress to act to raise the minimum wage to at least $15 an hour.”
“Throughout this pandemic, Democrats and Republicans alike have joined together in rightly calling our frontline workers ‘heroes.’ But despite their tireless work and the risk of COVID exposure, too many of these workers are paid wages so low, they can’t afford to pay for even their most basic needs. And because of systemic inequities and discrimination, workers of color, and in particular, women of color, are much more likely to be paid poverty-level wages,”said Senator Murray, Chair of the Senate Committee on Health, Education, Labor and Pensions.“Democrats are asking for $15 an hour, because no one working 40 hours a week, should be making $15,000 a year. If we’re committed to an economy that works for everyone, we need one fair, livable wage for everyone—and that includes workers with disabilities, tipped workers and youth workers. We won’t accept carve-outs and we won’t accept leaving anyone behind.”
“Americans working 40 hours a week should be able to put food on the table and a roof over their families’ heads, but with the minimum wage stuck at $7.25, far too many are working hard and still in poverty,”said Senate Majority Leader Chuck Schumer.“Raising the minimum wage to $15 an hour is one step Congress should take right now, particularly with the COVID-19 crisis stretching families’ resources further than ever. I am happy to move forward with this group to make it happen and give the American people a raise.”
“This pandemic has pushed millions more Americans into poverty and we need to ensure that everyworkingAmerican is able to support themselves and their families,”saidSenator Gillibrand.“Passing the Raise the Wage Act is more critical now than ever. Finally delivering a $15 minimum wage will benefit workersby liftingtheir familiesout of poverty and it will strengthenour economic recovery. We must keep fighting until all hardworking Americans can access basic economic security and a fair shot in our economy.”
“My colleagues and I have introduced this legislation raising the minimum wage to $15 an hour because Georgia’s working families are struggling to pay the bills, and they deserve a livable wage for an honest day’s work,”SenatorOssoffsaid.
“The coronavirus pandemic and economic crises have pulled back the veil on the unconscionable economic disparities that working women, low-income families and other vulnerable communities have faced for decades,”said Speaker Nancy Pelosi.“By re-introducing the Chair Bobby Scott’s Raise the Wage Act, which passed on a bipartisan basis in the previous Congress, the Democratic Congress is taking another strong and long-needed step to honor the dignity, dedication and contributions of millions of hard-working Americans. This legislation is a key part of Democrats’ commitment to not only recover from these crises, but to Build Back Better – and to do so in a way that advances justice, prosperity and equality for all Americans.”
“Even before the COVID-19 pandemic, the $7.25 federal minimum wage was economically and morally indefensible. Now, the pandemic is highlighting the gross imbalance between the value of our workers and the wages they are paid. Many of the essential workers who have braved a public health crisis to keep our economy moving are still not being paid enough to provide for themselves or their families. The Raise the Wage Act is a critical step toward lifting hardworking people out of poverty, addressing inequality, and ensuring that all Americans can share in the economic recovery.,”said Chairman Bobby Scott, Committee on Education and Labor.
“As a longtime organizer for working people who helped draft the resolution that made Seattle the first major city to enact a $15 minimum wage, I know that raising the wage is good for workers, families, businesses and the economy,”said Congresswoman Jayapal.“Now that we have a Democratic White House and a Democratic Senate, it is time for the People’s House to once again stand up for workers, fight for families and pass the Raise the Wage Act so we finally have a $15 minimum wage all across America.”
“Last Congress, I was proud to help lead the historic effort in the House to give Americans a raise. Floridians then followed suit and voted to increase our state minimum wage and put more money in the pockets of hard-working families,”said Congresswoman Murphy.“This bill is a reasonable step to boost our economy and ensure everyone who works hard in this great country can provide for themselves and their loved ones.”
“Raising the minimum wage to $15 an hour will change my life and let me tell my kids I can give them a better life than mine,”said Kansas City McDonald’s worker Fran Marion.“I’m so proud to join with leaders in Congress today as they reintroduce the Raise the Wage Act, which will give tens of millions of working families like mine the raise weso desperately need. Essential workers have been devastated by the COVID-19 pandemic and we can’t wait for help any longer.”
“Raising the federal minimum wage to $15 by 2025 will be a boost to the economy, and a boost to our sales. Raising wages is good business. Paying people fairly leads to greater staff retention, which reduces the cost of hiring and training new people to replace employees who leave. And fair pay leads to better quality, better ideas and better customer service,”said Mike Draper, owner of Raygun LLC, an Iowa-based clothing and home goods company and member of Business for a Fair Minimum Wage.
Sanders’ Senate companion is being cosponsored by 37 Members: Chair Murray (D-Wash.), Leader Schumer (D-N.Y.), Sens. Baldwin (D-Wis.), Bennet (D-Colo.), Blumenthal (D-Conn.), Booker, (D-N.J.) Brown (D-Ohio), Cantwell (D-Wash.), Cardin (D-Md.), Casey (D-Pa.), Duckworth (D-Ill.), Durbin (D-Ill.), Feinstein (D-Calif.), Gillibrand (D-N.Y.), Heinrich (D-N.M.), Hirono (D-Hawaii), Kaine (D-Va.), Klobuchar (D-Minn.), Leahy (D-Vt.), Lujan (D-N.M.), Markey (D-Mass.), Merkley (D-Ore.), Murphy, (D-Conn.) Ossoff (D-Ga.), Padilla (D-Calif.), Peters (D-Mich.), Reed (D-R.I.), Rosen (D-Nev.), Schatz (D-Hawaii), Smith (D-Minn.), Stabenow (D-Mich.), Van Hollen (D-Md.), Warner (D-Va.), Warnock (D-Ga.). Warren (D-Mass.), Whitehouse (D-R.I.), and Wyden (D-Ore.).
To read the bill text of the Raise the Wage Act, clickhere.
To read the section-by-section of the Raise the Wage Act, clickhere.
To read a fact sheet on Raise the Wage Act, clickhere.
Watch today’s press conferencehere.
Read Sanders’ prepared remarks below:
“This country faces major economic crises.
“Real unemployment is now close to 12% and last month alone 140,000 workers lost their jobs. Millions more face hunger, eviction and crushing debt.
“We have massive income and wealth inequality in America today. Incredibly, during the pandemic, 650 billionaires in America have increased their wealth by more than $1 trillion, while millions of workers struggle to feed their kids.
“And, in the midst of all of that, we must never lose sight of the fact that over half of our workers are living paycheck to paycheck. I’m talking about workers who are just one car accident, one medical emergency, one lost paycheck away from financial catastrophe.
“Let’s be clear. This is the richest country in the history of the world. We can no longer tolerate millions of our workers being unable to feed their families because they are working for starvation wages.
“Let’s be clear. Nobody in America can survive on $7.25 an hour, $9 an hour or $12 an hour. We need an economy in which all of our workers earn at least a living wage.
“It is a national disgrace that Congress has not passed an increase in the minimum wage since 2007 – 14 years ago.
“It is a national disgrace that the minimum wage has lost over 30 percent of its purchasing power since 1968.
“Yes. Now is the time to raise the minimum wage to a living wage – at least $15 an hour. A job in the United States of America should lift you out of poverty, not keep you in it.
“And when we increase that minimum wage to $15 an hour we will be giving over 32 million Americans a much needed raise.
“In fact, if the legislation we are introducing today becomes law, the average low-wage worker in America would receive an extra $3,300 – each and every year.
“And let’s be clear. The overwhelming majority of Americans support raising the minimum wage to $15 an hour. This is not a radical idea. This is what the American people want.
“Since 1998, every time a state has had an initiative on the ballot to raise the minimum wage it has won – no matter if that state was red, blue or purple.
“In November 61% of the people in Florida – a state Joe Biden lost by 3 points – voted to raise the minimum wage to $15 an hour.
“Eight states and over 40 cities have adopted laws to raise the minimum wage to $15 an hour.
“During the last session of Congress, the House did the right thing under the leadership of Speaker Pelosi and Chairman Scott – and I applaud them for their efforts – and passed legislation to raise the minimum wage to $15 an hour – and I have no doubt that they will do it again this year.
“Now, this issue rests in the Senate. It is my strong hope that a number of my Republican colleagues will come to their senses and understand that raising the minimum wage is not just a Democratic issue.
“No matter whether you are a Republican, a Democrat or an Independent – all of us understand that no one in America can make it on $8, $10 or $12 an hour. We have got to raise that minimum wage to $15 an hour.
“But let me also say this. If we cannot get enough Republicans to vote for this legislation under regular order, we cannot take no for an answer.
“We must understand that the issue of starvation wages is a national emergency.
“We must raise the minimum wage to $15 an hour through budget reconciliation by a simple majority vote in the Senate.
“And, as the incoming Chairman of the Senate Budget Committee, that is exactly what I am fighting to do.
“This is not a new concept. If the Republicans could use reconciliation to pass trillions of dollars in tax breaks for the wealthy and large corporations, if the Republicans could use reconciliation to drill in the Arctic National Wildlife Refuge, if the Republicans could use reconciliation to try to repeal the Affordable Care Act and throw up to 32 million Americans off of the healthcare they have, we can and must use reconciliation to protect the needs of working families.
“We must use reconciliation to increase the minimum wage to $15 an hour.
“Now is not the time for excuses. Now is not the time for more talk. Now is the time for action. Now is the time to raise the minimum wage to $15 an hour.”
FAQs
What does Bernie Sanders think about the minimum wage? ›
Bernie Sanders on Thursday announced a proposal to raise the federal minimum wage to $17 an hour, saying the potent inflation Americans have faced over the past two years makes it necessary for the government to institute higher wages for workers.
Who started the Fight for $15 movement? ›The Service Employees International Union (SEIU) helped create and underwrite the Fight for $15 movement because it believed that the US was paying far too little attention to the plight of low-wage workers.
What will the federal minimum wage be in 2023? ›| State | 2022 Minimum Hourly Wage | 2023 Minimum Hourly Wage |
|---|---|---|
| California | $14.00 for employers with 25 or less workers; $15.00 for larger businesses. | $15.50 for all employers. |
| Colorado | $12.56 | $13.65 |
| Connecticut | $14.00 | $14.00 |
| Delaware | $10.50 | $11.75 |
In the Fight for $15, unions are helping to organize on a community basis, a group of workers who are on the fringe of the economy. It's not about union members protecting themselves. It's about moving other people up. This is the whole civil rights movement all over again.
What are the arguments for raising minimum wage to $15? ›- Helping Families Get Out of Poverty. ...
- Increasing Consumer Spending. ...
- Increasing Federal Revenues. ...
- Increasing Employee Retention and Performance. ...
- Increasing Labor Costs and Unemployment. ...
- Increasing Cost of Living. ...
- Decreasing Opportunity for Inexperienced Workers.
Raising the federal minimum wage would exacerbate income disparities and the cycle of poverty. Cost of living varies wildly in the United States. For example, living in New York, California, and Hawaii costs significantly more than living in Mississippi, Kansas…
When did the $15 dollar minimum wage movement start? ›The Fight for $15 — the nationwide labor movement that demands a minimum hourly wage of $15 for workers — officially began on Nov. 29, 2012, when hundreds of fast food workers in New York City walked off the job, demanding better wages and working conditions.
When was $15 minimum wage introduced? ›In 2016, California became the first state to officially adopt a statewide minimum wage of $15 an hour implemented by incremental increase. This year is the first in which the state's large employers, defined as those with 26 or more employees, will need to comply with the $15 minimum.
What states have a $15 an hour minimum wage? ›Which States Have a $15 per Hour Minimum Wage? Washington, California, and Massachusetts are the states with a minimum wage of $15 per hour or above. Workers from Connecticut will have something to smile about as we get to mid-2023.
What happens if state minimum wage is higher than federal? ›What about if the state or local minimum wage is higher? If the state or local minimum wage is higher than the federal rate, pay your employees the state or local rate, whichever is higher. Pro tip: When choosing between federal, state, and local minimum wage laws, always pay your employees the highest rate.
What state has highest minimum wage? ›
- Washington: $15.74. Living wage: $19.58.
- California: $15.50. Living wage: $21.24.
- Massachusetts: $15. Living wage: $21.35.
- New York: $14.20. Living wage: $21.46.
- New Jersey: $14.13. Living wage: $18.71.
The current wage at Walmart is $12.00 to 18.00 an hour and will rise to $14.00 to $19.00 an hour on March 2, 2023. It should be noted that certain states already have a minimum wage of $16.00 an hour, including Connecticut, California, Massachusetts, and Washington.
Is $15 an hour enough to live on? ›At this point, $15 is the wrong number to focus on. The average apartment rent is 36% higher than it was in 2012. The cost to a worker for family health coverage is 48% more. “In most of the country,” says Rolf, “$15 an hour wasn't enough to live on then, and it's not enough anywhere in the country now.”
Does raising minimum wage cause inflation? ›Position: Minimum Wage Does Not Increase Inflation
Historically, minimum wage increases have had only a very weak association with inflationary pressures on prices in an economy.
Raising the minimum wage reduces turnover. Higher wages lead to lower employee turnover, resulting in reduced recruiting and training costs. An analysis by the Center for American Progress estimates that the cost of replacing low-wage workers is equal to about 16 percent of the employee's annual salary.
Does raising the minimum wage increase cost of living? ›Minimum wage increases have trivial effects on inflation
If every penny of this higher minimum wage fed directly into higher prices—that is, none of it was financed by higher productivity or lower profits—the move to $15 would create a one-time step-increase in the overall price level of less than 0.5%.
EPI research shows that raising the federal minimum wage to $15 an hour by 2025 would lift pay for 32 million workers across the country—that's 21% of the U.S. workforce.
What would happen if there were no minimum wage? ›Abolishing the federal minimum wage would help small businesses. Some economic theory suggests it would lower labor costs, expand the worker pool, raise profits, and reduce costs for consumers, as businesses tend to pass off the burden onto them. Also, ending it would delay the automation revolution.
Why raising minimum wage hurts the poor? ›In general, increasing the federal minimum wage would raise the earnings and family income of most low-wage workers, lifting some families out of poverty—but it would cause other low-wage workers to become jobless, and their family income would fall.
What should the minimum wage be? ›Raising the federal minimum wage to $15 an hour by 2025 would raise wages of up to 27.3 million workers and lift 1.3 million families out of poverty, according to a report by the Congressional Budget Office.
How does minimum wage increase affect those who already make more? ›
Raising the minimum wage means that business owners and employees in the United States are legally required to raise the hourly wage for their minimum wage workers—and only their minimum wage workers. If you're already earning above minimum wage, your employer won't be required to give you a pay increase too.
Who started U.S. minimum wage? ›The first federal minimum wage was instituted in the National Industrial Recovery Act of 1933, signed into law by President Franklin D. Roosevelt, but later found to be unconstitutional. In 1938, the Fair Labor Standards Act established it at $0.25 an hour ($4.81 in 2021 dollars).
Who started the minimum wage in America? ›In 1938, following an initiative by President Roosevelt, the US Congress adopted the Fair Labor Standards Act, which instituted a federal minimum wage.
Who was minimum wage created for? ›The purpose of the minimum wage was to stabilize the post-depression economy and protect the workers in the labor force. The minimum wage was designed to create a minimum standard of living to protect the health and well-being of employees.
Will the federal minimum wage be 15? ›Effect of a Federal Minimum Wage Increase to $15 by 2025 on the Federal Budget. The Raise the Wage Act of 2021, recently introduced by Senator Bernie Sanders and Representative Bobby Scott, would increase the federal minimum wage to $9.50 this year and then gradually to $15 by 2025.
What is the lowest salary in USA? ›The federal minimum wage for covered nonexempt employees is $7.25 per hour.
What 3 states have the lowest minimum wage? ›Currently, 30 states and Washington D.C. have minimum wages above the federal minimum wage of $7.25 per hour. Five states have not adopted a state minimum wage: Alabama, Louisiana, Mississippi, South Carolina and Tennessee. Two states, Georgia and Wyoming, have a minimum wage below $7.25 per hour.
What is a decent wage in 2023? ›As of Jun 2, 2023, the average hourly pay for the Decent jobs category in the United States is $21.59 an hour.
Can states ignore federal minimum wage? ›States are required to follow federal minimum wage law. States can pass their own laws to make the wage higher, equal to or lower than the federal law, but they can't make other changes that overrule the federal law, for instance, who is exempt or how many hours constitutes a work week.
What states haven't raised the minimum wage? ›States where legislatures have not raised the minimum above the federal $7.25 an hour include Mississippi, Louisiana, Georgia, Oklahoma, Tennessee, Kentucky, North Carolina and South Carolina.
What is the downside of a federal minimum wage? ›
Raising the minimum wage, instead of allowing the free market to determine an appropriate rate, will decrease employee compensation, while forcing businesses to close, use automation, or outsource jobs. Raising the federal minimum wage would exacerbate income disparities and the cycle of poverty.
What is the highest paying job? ›| OCCUPATION | 2022 MEDIAN PAY | PERCENTAGE INCREASE OVER NATIONAL MEDIAN |
|---|---|---|
| Physicians, All Other | $223,410 | 382.40% |
| Ophthalmologists, Except Pediatric | $219,810 | 374.60% |
| General Internal Medicine Physicians | $214,460 | 363.10% |
| Dentists, All Other Specialists | $212,740 | 359.40% |
$644 is the 25th percentile. Wages below this are outliers. $1,682 is the 75th percentile. Wages above this are outliers.
What is the average wage in America? ›| Age | Weekly Earnings | Average Hourly Wage |
|---|---|---|
| 25 to 34 years old | $1,018 | $25.45 |
| 35 to 44 years old | $1,223 | $30.58 |
| 45 to 54 years old | $1,239 | $30.98 |
| 55 to 64 years old | $1,218 | $30.45 |
Average Walmart hourly pay ranges from approximately $11.50 per hour for Floor Care Technician to $37.52 per hour for Data Center Technician. The average Walmart salary ranges from approximately $23,000 per year for Retail Customer Service Representative to $193,959 per year for Engineering Manager.
What is the average hourly wage in the US 2023? ›In April 2023, the average hourly earnings of all employees in the United States was at 11.01 U.S. dollars. The data have been seasonally adjusted.
How much is the Walmart pay bump? ›“We're proud to continue investing in Walmart's legacy by introducing new job opportunities and raising pay,” Furner said. A report from investment firm Jeffries Wednesday estimated Walmart's total average hourly wage will increase 6% year over year, on top of an 8% increase taken last year.
How much of your paycheck should you live on? ›Try the 50/30/20 rule
The rule entails spending 50% of your monthly income on essential expenses such as rent, monthly bills, and groceries, spending 30% on non-essential purchases such as going out to eat, and putting 20% into your savings account.
Poorman suggests the popular 50/30/20 rule of thumb for paycheck allocation: 50% of gross pay for essentials: groceries, bills, rent or mortgage, debt payments, and insurance. 30% for spending on dining or ordering out and entertainment. 20% for personal saving and investment goals.
How much would a Big Mac cost if minimum wage was $15? ›Morelix's take: If McDonald's workers were paid the $15 they're demanding, the cost of a Big Mac would go up 68 cents, from its current price of $3.99 to $4.67. By his estimates, A Big Mac meal would cost $6.66 rather than $5.69, and the chain's famous Dollar Menu would go for $1.17.
Does minimum wage affect poverty? ›
Researchers determine that regardless of the scenarios, a federal minimum wage increase would reduce poverty among all race and ethnic groups. Considering this wage increase would likely impact 56 million workers, it has the potential to bring great financial relief to families who need it most.
What is causing inflation? ›Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages. A surge in demand for products and services can cause inflation as consumers are willing to pay more for the product.
What are 3 drawbacks of raising minimum wage? ›Opponents of raising the minimum wage believe that higher wages could have several negative repercussions: leading to inflation, making companies less competitive, and resulting in job losses.
What are 3 benefits of raising minimum wage? ›When employers invest in their employees by paying them adequate wages, employees generally respond with improved efficiency. Raising pay could lead to better performance, higher customer satisfaction, increased morale and lower error and accident rates.
What does Marx say about minimum wage? ›The lowest and the only necessary wage rate is that providing for the subsistence of the worker for the duration of his work and as much more as is necessary for him to support a family and for the race of labourers not to die out.
What did Adam Smith say about minimum wage? ›“A man must always live by his work, and his wages must be at least sufficient to maintain him,” and, “When the regulation, therefore, is in favor of the workmen, it is always just and equitable” Adam Smith (1776/1937: p.
Why raising minimum wage is a good idea? ›Raising the minimum wage reduces turnover. Higher wages lead to lower employee turnover, resulting in reduced recruiting and training costs. An analysis by the Center for American Progress estimates that the cost of replacing low-wage workers is equal to about 16 percent of the employee's annual salary.
Why minimum wage is a good idea? ›For instance, a company that is the sole employer in a particular market may be able to impose lower wages than would prevail under competition. In this case, a minimum wage can raise the incomes of workers without reducing employment. Indeed, the higher wages may attract more workers and hence raise employment.
Is raising minimum wage bad for the economy? ›Raising the minimum wage would increase the cost of employing low-wage workers. As a result, some employers would employ fewer workers than they would have under a lower minimum wage. However, for certain workers or in some circumstances, employment could increase.
What would a Keynesian say about minimum wage? ›The minimum wage sets a lower bound that, even in good times, prevents the least-productive workers from finding work. In recession times, it's even worse. Keynesians in the golden age of Keynesianism were quite critical of the minimum wage and were sympathetic to its victims.
Will minimum wage create a surplus of labor? ›
Unfortunately, it, like any price floor, creates a surplus. In this case, it is a surplus of workers (suppliers of labor), more of whom are willing to work in minimum-wage jobs than there are employers (demanders) willing to hire at that wage. We call a surplus caused by the minimum wage “unemployment.”
Who actually earns minimum wage? ›The minimum wage mostly applies to hourly workers, as it requires them to be paid at least $7.25 per hour. Therefore, these are some interesting facts about these workers: As of 2021, 82.3 million Americans over 16 are paid hourly.
Was minimum wage ever a liveable wage? ›From the beginning, the minimum wage was meant to be a living wage—meaning families could live off of the pay comfortably, rather than struggling paycheck-to-paycheck. President Franklin Delano Roosevelt was a major proponent of the living wage, saying that “by living wages, I mean more than a bare subsistence level.
Why is raising the minimum wage so controversial? ›Opponents of raising the minimum wage believe that higher wages could have several negative repercussions: leading to inflation, making companies less competitive, and resulting in job losses.
Would raising the minimum wage cause inflation? ›Position: Minimum Wage Does Not Increase Inflation
Historically, minimum wage increases have had only a very weak association with inflationary pressures on prices in an economy.
Which States Have a $15 per Hour Minimum Wage? Washington, California, and Massachusetts are the states with a minimum wage of $15 per hour or above. Workers from Connecticut will have something to smile about as we get to mid-2023.
What are 3 pros of minimum wage? ›While some critics of minimum wage argue that the law harms workers and interferes with business development, advocates point to several advantages, including the protection of workers, improving the economy and motivating employees to higher standards of performance.
What is the minimum wage in the United States of America? ›Federal laws
The federal minimum wage in the United States has been $7.25 per hour since July 2009, the last time Congress raised it. Some types of labor are exempt: Employers may pay tipped labor a minimum of $2.13 per hour, as long as the hour wage plus tip income equals at least the minimum wage.
Since each industry may require vastly different things from its employees, it makes sense the minimum wage varies from business to business. Five developed nations without legal minimum wage requirements are Sweden, Denmark, Iceland, Norway, and Switzerland.