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) in-
troduced the following bill; which was referred to the Committee on Edu-
cation 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 jurisdic-
tion 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 min-
imum wage. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fair Wage Act’’. 
SEC. 2. MINIMUM WAGE INCREASES. 
(a) MINIMUM WAGE.— 
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(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 sec-
tion, 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 ear-
lier; 
‘‘(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 
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‘‘(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 ad-
justed), 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 
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(1)(B), the Secretary shall compare such Consumer Price 
Index for the most recent month, quarter, or year avail-
able (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 pre-
ceding 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 FED-
ERAL 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: 
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‘‘SEC. 3113. CREDIT FOR CERTAIN EMPLOYERS WHO PAY 
MORE THAN THE FEDERAL MINIMUM WAGE. 
‘‘(a) IN GENERAL.—In the case of a qualified em-
ployer, there shall be allowed as a credit against the tax 
imposed under section 3111 an amount equal to 6.2 per-
cent of the wages paid by such employer to qualified em-
ployees 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 em-
ployer (determined on an hourly basis) exceeds the min-
imum 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 sec-
tion 6(a)(1) of the Fair Labor Standards Act of 
1938, 
‘‘(B) not more than $15 per hour, and 
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‘‘(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 ac-
count 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 Janu-
ary 1, 2017, whichever date is earlier. 
Æ 
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