I 

114TH CONGRESS 

2D SESSION H. R. 4508 

To provide for increases in the Federal minimum wage and to provide a 

credit against the employment taxes of certain employers who pay more 

than the Federal minimum wage. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 9, 2016 

Mr. NORCROSS (for himself, Mr. PALLONE, and Mrs. WATSON COLEMAN) introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and 

Means, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To provide for increases in the Federal minimum wage and 

to provide a credit against the employment taxes of 

certain employers who pay more than the Federal minimum wage. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fair Wage Act’’. 

5 SEC. 2. MINIMUM WAGE INCREASES. 

6 (a) MINIMUM WAGE.— 


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1 (1) IN GENERAL.—Section 6(a)(1) of the Fair 

2 Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) 

3 is amended to read as follows: 

4 ‘‘(1) except as otherwise provided in this sec5 tion, not less than— 

6 ‘‘(A) $8.00 an hour, beginning 30 days 

7 after the date of enactment of the Fair Wage 

8 Act or January 1, 2017, whichever date is ear9 lier; 

10 ‘‘(B) $9.00 an hour, beginning 1 year after 

11 the date the wage specified in subparagraph (A) 

12 takes effect; 

13 ‘‘(C) $10.00 an hour, beginning 2 years 

14 after such date; 

15 ‘‘(D) $11.00 an hour, beginning 3 years 

16 after such date; 

17 ‘‘(E) $12.00 an hour, beginning 4 years 

18 after such date; 

19 ‘‘(F) $13.00 an hour, beginning 5 years 

20 after such date; 

21 ‘‘(G) $14.00 an hour, beginning 6 years 

22 after such date; 

23 ‘‘(H) $15.00 an hour, beginning 7 years 

24 after such date; and 


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1 ‘‘(I) beginning 8 years after such date, and 

2 annually thereafter, the amount determined by 

3 the Secretary pursuant to subsection (h).’’. 

4 (2) DETERMINATION BASED IN INCREASE IN

5 CONSUMER PRICE INDEX.—Section 6 of the Fair 

6 Labor Standards Act of 1938 (29 U.S.C. 206) is 

7 amended by adding at the end the following: 

8 ‘‘(h)(1) Each year, by not later than the date that 

9 is 90 days before a new minimum wage determined under 

10 subsection (a)(1)(I) is to take effect, the Secretary shall 

11 determine the minimum wage to be in effect pursuant to 

12 this subsection for the subsequent 1-year period. The wage 

13 determined pursuant to this subsection for a year shall 

14 be— 

15 ‘‘(A) not less than the amount in effect under 

16 subsection (a)(1) on the date of such determination; 

17 ‘‘(B) increased from such amount by the annual 

18 percentage increase in the Consumer Price Index for 

19 Urban Wage Earners and Clerical Workers (United 

20 States city average, all items, not seasonally ad21 justed), or its successor publication, as determined 

22 by the Bureau of Labor Statistics; and 

23 ‘‘(C) rounded to the nearest multiple of $0.05. 

24 ‘‘(2) In calculating the annual percentage increase in 

25 the Consumer Price Index for purposes of paragraph 


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1 (1)(B), the Secretary shall compare such Consumer Price 

2 Index for the most recent month, quarter, or year avail3 able (as selected by the Secretary prior to the first year 

4 for which a minimum wage is in effect pursuant to this 

5 subsection) with the Consumer Price Index for the same 

6 month in the preceding year, the same quarter in the pre7 ceding year, or the preceding year, respectively.’’. 

8 (b) PUBLICATION OF NOTICE.—Section 6 of the Fair 

9 Labor Standards Act of 1938 (as amended by subsection 

10 (a)) (29 U.S.C. 206) is further amended by adding at the 

11 end the following: 

12 ‘‘(i) Not later than 60 days prior to the effective date 

13 of any increase in the minimum wage determined under 

14 subsection (h), the Secretary shall publish in the Federal 

15 Register and on the website of the Department of Labor 

16 a notice announcing the adjusted required wage.’’. 

17 SEC. 3. CREDIT AGAINST EMPLOYMENT TAXES OF CERTAIN 

18 EMPLOYERS WHO PAY MORE THAN THE FED19 ERAL MINIMUM WAGE. 

20 (a) IN GENERAL.—Subchapter B of chapter 21 of the 

21 Internal Revenue Code of 1986 is amended by adding at 

22 the end the following new section: 


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1 ‘‘SEC. 3113. CREDIT FOR CERTAIN EMPLOYERS WHO PAY 

2 MORE THAN THE FEDERAL MINIMUM WAGE. 

3 ‘‘(a) IN GENERAL.—In the case of a qualified em4 ployer, there shall be allowed as a credit against the tax 

5 imposed under section 3111 an amount equal to 6.2 per6 cent of the wages paid by such employer to qualified em7 ployees during the calendar year. 

8 ‘‘(b) QUALIFIED EMPLOYER.—For purposes of this 

9 section, the term ‘qualified employer’ means any employer 

10 for any calendar year if the lowest hourly wage paid by 

11 such employer to the lowest paid employee of such em12 ployer (determined on an hourly basis) exceeds the min13 imum hourly wage in effect for such calendar year under 

14 section 6(a)(1) of the Fair Labor Standards Act of 1938 

15 by $1 or more per hour. 

16 ‘‘(c) QUALIFIED EMPLOYEE.—For purposes of this 

17 section, the term ‘qualified employee’ means any employee 

18 of a qualified employer if— 

19 ‘‘(1) such employee is compensated in wages on 

20 an hourly basis, and 

21 ‘‘(2) such hourly wage is— 

22 ‘‘(A) not less than $1 more per hour than 

23 the minimum hourly wage in effect under sec24 tion 6(a)(1) of the Fair Labor Standards Act of 

25 1938, 

26 ‘‘(B) not more than $15 per hour, and 


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1 ‘‘(C) in the case of any employee employed 

2 by such employer in any preceding calendar 

3 year, greater than the highest hourly wage paid 

4 by such employer to such employee during any 

5 such preceding calendar year. 

6 ‘‘(d) SPECIAL RULES.—Wages shall be taken into ac7 count in determining the amount of the credit allowed 

8 under subsection (a) only if such wages are paid by the 

9 employer— 

10 ‘‘(1) with respect to employment (as defined in 

11 section 3121(b)), and 

12 ‘‘(2) in the ordinary course of the employer’s 

13 trade or business.’’. 

14 (b) TRUST FUNDS HELD HARMLESS.—The amount 

15 of any transfer, appropriation, or credit to any trust fund 

16 shall be determined without regard to the amendment 

17 made by subsection (a). 

18 (c) EFFECTIVE DATE.—The amendment made by 

19 subsection (a) shall apply to wages paid after the date that 

20 is 30 days after the date of enactment of this Act or Janu21 ary 1, 2017, whichever date is earlier. 

Æ 


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