New Bill Proposes a $25 Federal Minimum Wage

A new bill is making waves since it was introduced on April 28 of this year because it may dramatically increase the federal minimum wage for the first time since 2009. The new bill is named the Living Wage for All Act and it would require large companies to pay a minimum wage of $25 per hour by 2031. Small businesses would have until 2038. In addition, employers could no longer pay below minimum wage for those employees who receive tips or are disabled.

Currently, the federal minimum wage is $7.25 an hour and has remained at this amount since 2009. Since that time, many cities and states have increased their minimum wage dramatically. In fact, as of January of 2026, California’s statewide minimum wage increased to $16.90 per hour for all employers regardless of size and regardless of whether the employee receives tips or not. In addition, the minimum wage for the city of Los Angeles is even higher than the state’s minimum. As of July 1, 2026, the city of Los Angeles’ minimum wage increased to $18.42 per hour for all employers regardless of employee size or type. Clearly, the federal minimum wage is considered very low in California and, in particular, the city of Los Angeles. Nevertheless, an increase to $25 per hour would still be a dramatic increase for both California and the city of Los Angeles.

This is not the first time a bill proposing to increase the federal minimum wage has been introduced. In fact, there have been several attempts to increase the federal minimum wage since 2009, but to no avail. Last year, two senators introduced legislation to raise the nationwide minimum wage to $15 an hour, and (needless to say) that bill was not passed.

Representative Analilia Mejia has argued that, “[h]ousing, gas, and grocery costs have all surged, yet the federal minimum wage hasn’t been raised since 2009...This is unacceptable. No one working full time should be struggling to survive.” However, in contrast, a report from the Employment Policies Institute stated that “[t]he latest proposal to raise the federal minimum wage to $25 an hour is out of touch with economic reality...Economists have long studied the impacts of minimum wages, and overwhelmingly find they cause lost jobs, higher prices, and shuttered businesses.”

The fact that some legislators are even considering a bill that would raise federal minimum wage so drastically may be of interest to some employers. If the federal minimum wage is increased, employers will have a bigger burden to shoulder- especially in those areas where the current federal minimum wage is in fact the prevailing wage.