Original Living Wage Act

To amend the Fair Labor Standards Act to provide for the calculation of the minimum wage based on the Federal poverty threshold for a family of 4, as determined by the Bureau of the Census. 1. Short title This Act may be cited as the Original Living Wage Act 2. Findings; sense of Congress (a) Findings Congress finds the following: (1) In 2015, there were approximately 43,100,000 Americans living in poverty who were separated from the opportunities of the Nation by their income, their housing, and their access to education, jobs, and health care. (2) A full-time worker earning the Federal minimum wage earns an income below the Federal poverty threshold for a family of 4, consisting of 2 adults and 2 children. (3) The average fair market rent for a 1-bedroom apartment is more than 65 percent of the monthly income of a full-time worker earning the minimum wage. In comparison, the generally accepted definition of affordability is for a household to pay not more than 30 percent of its income on housing. (4) Two full-time workers earning the Federal minimum wage earn an income below the national housing wage for a 1-bedroom apartment, the amount a person needs to earn to afford a 1-bedroom apartment at average rent. (b) Sense of Congress It is the sense of Congress that— (1) the Federal minimum wage should, as a minimum, be adjusted every 4 years so that a person working for such a wage may earn an annual income that is not less than 25.5 percent higher than the Federal poverty threshold for a family of 4, as determined by the Bureau of the Census; (2) the minimum wage should be set at a level high enough to allow 2 full-time minimum wage workers to earn an income above the national housing wage; and (3) Congress, any of the several States, the District of Columbia, any territory or possession of the United States, any Indian tribe, or any local or municipal government of a State may establish a higher minimum wage requirement than that established in this Act. 3. Minimum wage Section 6 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206 (1) in subsection (a)(1)— (A) by striking and (B) by inserting and (C) by inserting at the end the following: (D) the amount determined by the Secretary under subsection (b), beginning September 1, 2021; ; and (2) by redesignating subsection (b) as subsection (c) and inserting after subsection (a) the following: (b) (1) Subject to paragraph (2), not later than June 1, 2021, and once every 4 years thereafter, the Secretary shall determine the minimum wage rate applicable under subsection (a)(1) based on the formula described in paragraph (3). The Secretary shall publish such wage rate in the Federal Register not later than October 1 of each year. (2) If the minimum wage rate determined by the Secretary under paragraph (1) would result in a lower minimum wage rate than the minimum wage rate in effect at the time of such determination, the Secretary may not adjust the minimum wage rate so in effect. (3) The minimum wage rate determined by the Secretary under paragraph (1) shall be the minimum hourly wage sufficient for a person working for such wage for 40 hours per week, 52 weeks per year, to earn an annual income in an amount that is 25.5 percent higher than the Federal poverty threshold for a family of 4, with two children under the age of 18, and living in any of the 48 contiguous States, as published by the Bureau of the Census for the year in which the wage rate is being so determined. .

Summary: 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, 2021, and review it every four years. Labor may not adjust the minimum wage to a lower rate.