# Plain Language Summary: Original Living Wage Act

The Original Living Wage Act would require the federal government and companies that receive federal contracts or grants to pay their workers a "living wage" instead of the current minimum wage. Right now, the federal minimum wage is $7.25 per hour, which hasn't changed since 2009. This bill would set a higher wage floor for these specific workers, based on the idea that people working full-time should earn enough to cover basic living expenses like housing, food, and transportation without needing government assistance.

The bill primarily affects two groups of workers. First, it applies to people directly employed by the federal government—think federal office workers, park rangers, and other civil servants. Second, it covers workers at private companies that have contracts with the government or receive federal funding. This could include construction workers on federal building projects, employees at companies with government contracts, and workers at organizations receiving federal grants. The exact wage amount would likely be calculated based on regional cost-of-living differences, so workers in expensive cities like New York or San Francisco would earn more than those in rural areas.

For workers covered by this law, the practical impact would be straightforward: a higher paycheck. Someone earning minimum wage today might see their hourly pay increase significantly, which could help them afford rent, childcare, and other necessities without working multiple jobs or relying on food stamps and other benefits. However, employers—especially smaller companies with government contracts—might face higher labor costs, which could potentially lead to higher prices for government services or fewer new hires. The bill essentially tries to balance worker welfare with the idea that taxpayer money shouldn't subsidize companies paying poverty wages.

Original Living Wage Act

Green, Al

Original Living Wage Act This bill increases the federal minimum wage to the minimum hourly wage sufficient for a person working for 40 hours per week, 52 weeks per year, to earn an annual income 25.5% higher than the federal poverty threshold for a four-person household, with two children under age 18, and living in the 48 contiguous states. (Under current poverty thresholds, the national minimum wage would be set at approximately $15.64 per hour.) The Department of Labor must determine the minimum wage rate by June 1, 2023, and review it every four years. Labor may not adjust the minimum wage to a lower rate.