# Plain Language Summary: American Stability Act

This bill makes significant changes to the federal minimum wage and how it's calculated going forward. Starting the year after the bill passes, the minimum wage would jump to $15 per hour. After that, it would increase each year by whichever is smaller: 10 percent or whatever amount is needed to match what the bill calls the "stability wage." The stability wage is calculated based on two factors—average worker earnings and the cost of living—and whichever one is higher determines the floor. Once the regular minimum wage catches up to the stability wage, it would automatically adjust every year to match it. This means the minimum wage would no longer stay frozen at one level; instead, it would move up regularly based on how much workers typically earn and how much prices are rising.

The bill also eliminates the lower minimum wage that currently applies to tipped workers like servers and bartenders. They would get the same full minimum wage as everyone else, though they can still receive and keep tips. The bill also ends the special lower minimum wage for teenagers—currently, employers can pay workers under 20 a reduced rate for their first 90 days, but that would go away. Additionally, the bill eliminates a special provision that allows some employers to pay workers with disabilities below the minimum wage. These workers would transition to earning at least the regular minimum wage instead.

On the tax side, the bill restructures income tax brackets based on the stability wage concept, creates a surcharge on high-income earners, and provides a special lower tax rate for low-income individuals. The bill also includes provisions to help employers adjust to the wage changes and to assist workers with disabilities who were previously paid below minimum wage to find competitive jobs.