Fair Wage Act

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. Short title This Act may be cited as the Fair Wage Act 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) (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 (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 (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 (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. . 3. Credit against employment taxes of certain employers who pay more than the Federal minimum wage (a) In general Subchapter B of chapter 21 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 (c) Qualified employee For purposes of this section, the term qualified employee (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 (based on increases in the Consumer Price Index) 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.