Better Pay for American Workers Act
- Sponsor
- Rep. Torres, Norma J. [D-CA-35]
- Committees
- Education and Workforce Committee (primary)
- Last action
- Sep 3, 2026
Bottom line
This bill significantly raises the federal minimum wage to $20.00 per hour by 2029 and then indexes it to median wage growth, aiming to improve living standards for low-wage workers.
What it actually does
This bill amends the Fair Labor Standards Act of 1938 to incrementally increase the federal minimum wage over three years. It mandates a rise to $15.00 per hour in 2027, $17.50 in 2028, and $20.00 in 2029. Beginning in 2030, the minimum wage would be annually adjusted based on the percentage increase in the median hourly wage, as determined by the Bureau of Labor Statistics.
Proponents argue
Supporters argue that increasing the minimum wage is essential to ensure that full-time workers can earn a living wage, reduce poverty, and stimulate economic growth by boosting consumer spending among low-income households. They contend that the current minimum wage is insufficient to cover basic living expenses and that indexing it to median wage growth will prevent its erosion by inflation and ensure long-term wage stability.
Opponents contend
Opponents typically argue that a significant increase in the minimum wage could lead to job losses, particularly in industries with thin profit margins, as businesses may reduce staff or slow hiring to offset increased labor costs. They also suggest it could lead to higher prices for consumers as businesses pass on increased costs, potentially fueling inflation, and that it interferes with market-driven wage setting.
The bill is very short and straightforward, making it highly accessible for any reader to understand its core provisions quickly.
Section 2(a) of the bill, amending Section 6(a) and adding Section 6(h) to the Fair Labor Standards Act of 1938 (29 U.S.C. 206)
Federal Minimum Wage Increase and Annual Indexing
This provision raises the federal minimum wage in a series of steps: to $15.00 per hour starting January 1, 2027; to $17.50 per hour starting January 1, 2028; and to $20.00 per hour starting January 1, 2029. After these initial increases, beginning January 1, 2030, and annually thereafter, the minimum wage will be adjusted based on the annual percentage increase in the median hourly wage of all employees, as determined by the Bureau of Labor Statistics, rounded to the nearest $0.05.
Supporters argue
Supporters argue that this phased increase provides businesses time to adjust while ensuring workers receive a fair wage that keeps pace with the cost of living. Indexing to the median wage prevents future erosion of purchasing power and provides long-term predictability.
Critics contend
Critics contend that these substantial increases, particularly the jump to $20.00, could force businesses to cut jobs, reduce hours, or automate tasks, especially in regions with lower costs of living. They also argue that tying the minimum wage to the median wage could create an inflationary spiral.
Tradeoffs
The provision balances the goal of improving worker living standards against concerns about potential job losses, business closures, and inflationary pressures. It also navigates the tension between a fixed minimum wage that loses value over time and an indexed wage that provides stability but might be less predictable for businesses.