Fair Wage Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Wage Act''.

SEC. 2. MINIMUM WAGE INCREASES.

    (a) Minimum Wage.--
            (1) In general.--Section 6(a)(1) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to read 
        as follows:
            ``(1) except as otherwise provided in this section, not 
        less than--
                    ``(A) $8.00 an hour, beginning 30 days after the 
                date of enactment of the Fair Wage Act or January 1, 
                2017, whichever date is earlier;
                    ``(B) $9.00 an hour, beginning 1 year after the 
                date the wage specified in subparagraph (A) takes 
                effect;
                    ``(C) $10.00 an hour, beginning 2 years after such 
                date;
                    ``(D) $11.00 an hour, beginning 3 years after such 
                date;
                    ``(E) $12.00 an hour, beginning 4 years after such 
                date;
                    ``(F) $13.00 an hour, beginning 5 years after such 
                date;
                    ``(G) $14.00 an hour, beginning 6 years after such 
                date;
                    ``(H) $15.00 an hour, beginning 7 years after such 
                date; and
                    ``(I) beginning 8 years after such date, and 
                annually thereafter, the amount determined by the 
                Secretary pursuant to subsection (h).''.
            (2) Determination based in increase in consumer price 
        index.--Section 6 of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 206) is amended by adding at the end the following:
    ``(h)(1) Each year, by not later than the date that is 90 days 
before a new minimum wage determined under subsection (a)(1)(I) is to 
take effect, the Secretary shall determine the minimum wage to be in 
effect pursuant to this subsection for the subsequent 1-year period. 
The wage determined pursuant to this subsection for a year shall be--
            ``(A) not less than the amount in effect under subsection 
        (a)(1) on the date of such determination;
            ``(B) increased from such amount by the annual percentage 
        increase in the Consumer Price Index for Urban Wage Earners and 
        Clerical Workers (United States city average, all items, not 
        seasonally adjusted), or its successor publication, as 
        determined by the Bureau of Labor Statistics; and
            ``(C) rounded to the nearest multiple of $0.05.
    ``(2) In calculating the annual percentage increase in the Consumer 
Price Index for purposes of paragraph (1)(B), the Secretary shall 
compare such Consumer Price Index for the most recent month, quarter, 
or year available (as selected by the Secretary prior to the first year 
for which a minimum wage is in effect pursuant to this subsection) with 
the Consumer Price Index for the same month in the preceding year, the 
same quarter in the preceding year, or the preceding year, 
respectively.''.
    (b) Publication of Notice.--Section 6 of the Fair Labor Standards 
Act of 1938 (as amended by subsection (a)) (29 U.S.C. 206) is further 
amended by adding at the end the following:
    ``(i) Not later than 60 days prior to the effective date of any 
increase in the minimum wage determined under subsection (h), the 
Secretary shall publish in the Federal Register and on the website of 
the Department of Labor a notice announcing the adjusted required 
wage.''.

SEC. 3. CREDIT AGAINST EMPLOYMENT TAXES OF CERTAIN EMPLOYERS WHO PAY 
              MORE THAN THE FEDERAL MINIMUM WAGE.

    (a) In General.--Subchapter B of chapter 21 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 3113. CREDIT FOR CERTAIN EMPLOYERS WHO PAY MORE THAN THE FEDERAL 
              MINIMUM WAGE.

    ``(a) In General.--In the case of a qualified employer, there shall 
be allowed as a credit against the tax imposed under section 3111 an 
amount equal to 6.2 percent of the wages paid by such employer to 
qualified employees during the calendar year.
    ``(b) Qualified Employer.--For purposes of this section, the term 
`qualified employer' means any employer for any calendar year if the 
lowest hourly wage paid by such employer to the lowest paid employee of 
such employer (determined on an hourly basis) exceeds the minimum 
hourly wage in effect for such calendar year under section 6(a)(1) of 
the Fair Labor Standards Act of 1938 by $1 or more per hour.
    ``(c) Qualified Employee.--For purposes of this section, the term 
`qualified employee' means any employee of a qualified employer if--
            ``(1) such employee is compensated in wages on an hourly 
        basis, and
            ``(2) such hourly wage is--
                    ``(A) not less than $1 more per hour than the 
                minimum hourly wage in effect under section 6(a)(1) of 
                the Fair Labor Standards Act of 1938,
                    ``(B) not more than $15 per hour, and
                    ``(C) in the case of any employee employed by such 
                employer in any preceding calendar year, greater than 
                the highest hourly wage paid by such employer to such 
                employee during any such preceding calendar year.
    ``(d) Special Rules.--Wages shall be taken into account in 
determining the amount of the credit allowed under subsection (a) only 
if such wages are paid by the employer--
            ``(1) with respect to employment (as defined in section 
        3121(b)), and
            ``(2) in the ordinary course of the employer's trade or 
        business.''.
    (b) Trust Funds Held Harmless.--The amount of any transfer, 
appropriation, or credit to any trust fund shall be determined without 
regard to the amendment made by subsection (a).
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to wages paid after the date that is 30 days after the date of 
enactment of this Act or January 1, 2017, whichever date is earlier.

Summary: Fair Wage Act This bill amends the Fair Labor Standards Act of 1938 to increase the federal minimum wage for employees to: $8.00 an hour 30 days after this Act's enactment date or January 1, 2017, whichever date is earlier. $9.00 an hour, one year after the date the $8.00 an hour wage takes effect, $10.00 an hour, after two years, $11.00 an hour, after three years, $12.00 an hour, after four years, $13.00 an hour, after five years, $14.00 an hour, after six years, $15.00 an hour, after seven years. And the amount determined by the Department of Labor eight years after such date and annually thereafter. The bill directs Labor, 60 days before any increase in the minimum wage, to publish it in the Federal Register and on Labor's website. The bill amends the Internal Revenue Code to allow an employer who pays at least $1 more per hour than the federal minimum wage, but not more than $15 per hour, a credit against the employment tax equal to 6.2 of wages paid by such employer during the calendar year.