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Home » Could This New Bipartisan Bill Lead Us to a $15 Federal Minimum Wage?
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Could This New Bipartisan Bill Lead Us to a $15 Federal Minimum Wage?

staffBy staffJune 20, 20256 Mins Read
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A new $15 federal minimum wage bill is under discussion, but it will still be some time before it materializes. The latest federal wage legislation update comes from the Higher Wages for American Workers Act, which is hoping to raise the minimum wage to $15 on January 1 of the first year after the act goes into effect. Wage workers have long struggled with the low minimum wage numbers, as the federal minimum currently stands at $7.25, and has been unchanged since 2009.

Most states have raised the minimum wage within their borders to support residents and help them keep up with inflation, but many states like Georgia, Louisiana, and Alabama still follow the federal minimum wage numbers, with their workers earning as low as $7.25 for many roles. The $15 wage legislation could make a significant difference to the lives of residents in such regions, however, it is unclear if the bill will be passed.

$15 Federal Minimum Wage

Increasing the federal minimum wage to $15 could be a game-changer for workers across the country. (Image: Pexels)

$15 Federal Minimum Wage Bill Broaches the Topic of Making Worker-Centric Changes

The 2025 GOP minimum wage bill proposal is being led by Republican Missouri Senator Josh Hawley alongside Democratic Vermont Senator Peter Welch. Raising the federal minimum wage to $15.00 per hour from $7.25 would nearly double the current wages for thousands of workers if enacted. The regulation would also require the federal minimum wage to increase with inflation in subsequent years, ensuring that it no longer remains stagnant the way it has since 2009. Many have applauded the advancement of this bill, but there isn’t a clear path for approval. 

“For decades, working Americans have seen their wages flatline. One major culprit of this is the failure of the federal minimum wage to keep up with the economic reality facing hard-working Americans every day. This bipartisan legislation would ensure that workers across America benefit from higher wages,” Senator Hawley said in a statement on the website.

Thirty-one states, including Missouri, have already increased their state minimum wage regulations, and workers within their borders have largely been grateful for the changes. States like Washington D.C and California provide some of the highest minimum wages for their citizens, but many other states have also regularly adjusted their policy to keep up with inflation. Around 21 states have already, or will soon, adjust the minimum wage in 2025.

The Federal Wage Legislation Update Is a Welcome Example of Bipartisan Collaboration

Hawley and Welch’s wage increase proposal is a surprising one considering the varied alignment of the two parties on the matter of wages; however, it keeps the workers’ interests in mind, which is a good sign for the workforce. Describing the bipartisan presentation of the bill, Hawley described it as “a populist position,” and told NBC News, “if we’re going to be a working people’s party, we have to do something for working people. And working people haven’t gotten a raise in years. So they need a raise.”

It is unclear if the bill will receive presidential support, as the central government has only provided ambiguous responses regarding its enforcement. Many in the government oppose raising the minimum wage because they fear it will disrupt businesses. 

Why Is There Opposition to the $15 Wage Legislation?

Since the $7.25 minimum was last set in July 2009, inflation has caused the prices of every commodity and convenience to rise significantly. Those who could get by on the minimum wage in 2009 do not have the same purchasing power today. States that have a higher cost of living have largely adjusted the minimum wage to close the disparity, but workers who earn minimum wage are almost always in a disadvantaged position. 

The $15 federal minimum wage bill would be a blessing for workers in states that still follow the federal regulation, as it could effectively double their income and help them significantly improve their quality of life and standard of living.

However, despite the many advantages presented by the Senate’s $15 minimum wage proposal, there is considerable opposition to the change. Many believe that those who earn minimum wage are performing entry-level jobs that don’t require higher compensation. There is also the fact that the $15 wage legislation will increase the cost of hiring for many employers. 

Where businesses could previously pay two employees, following the change, they will only be able to afford one to keep their expenses unchanged. Instead of paying higher wages, many employers might choose to fire their workers and run smaller teams, leading to a rise in unemployment. We already have reports that entry-level jobs are declining due to AI, which means that the change in minimum wage could further push employers towards technology over talent.

The $15 Federal Minimum Wage Bill Could Help Thousands of Americans

The fact is that a very small number of workers earn the $7.25 an hour wage, as most organizations have begun paying wages higher than the current minimum wage. According to CNN’s review of data from the Bureau of Labor Statistics, in 2023, only 870,000 workers earned the current federal minimum wage. This made up only 1% of the 80 million hourly workers across the nation. However, about 14 million people are believed to earn below the proposed $15 rate in the federal minimum wage bill. 

The federal wage legislation update would not only benefit those who earn minimum wage but also benefit workers who still earn too little to sustain a decent livelihood in 2025. The annual review of the federal minimum wage for inflation adjustments would also ensure that the standard wage is adjusted regularly in the years to come. 

Despite the concerns surrounding the impact on employers, it is evident that the $15 federal minimum wage bill is a much-needed advancement for the benefit of US citizens. There are currently no fixed timelines for the approval of the 2025 GOP minimum wage bill, but we’ll stay alert for further information and update this space when we learn more.

Subscribe to The HR Digest for more insights into the ever-evolving landscape of work and employment. 

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