Wyden, Colleagues Introduce Landmark Bill to Raise the National Minimum Wage to a Living Wage of $25 an Hour

Wyden, Colleagues Introduce Landmark Bill to Raise the National Minimum Wage to a Living Wage of $25 an Hour

Bill would immediately increase the federal minimum wage to $12 an hour, then grow it gradually and annually.

Washington, D.C. - U.S. Senator Ron Wyden said today he has joined Senate colleagues to introduce legislation that would phase in an increase of the federal minimum wage to $25 an hour.

The Living Wage For All Act would change the lives of tens of millions of American workers and their families. An estimated 45 percent of American workers make less than $25 an hour. Under the bill's two-track phase-in, large corporate employers would be required to implement a $25-an-hour wage floor by 2032, while smaller employers would have until 2039 to do so. The bill would also guarantee a living wage for workers by mandating automatic, continued increases of the federal minimum wage to two-thirds of the national median wage.

"The American people will not accept an economy that creates trillionaires while so many people are buried under the cost of living," Wyden said. "A 25 dollar living wage wouldn't just be a leg up for workers, it would be an economic revolution and deliver the benefits of economic growth exactly where they belong: with the workers. Oregon has led by example by instituting annual wage increases, and I am a firm believer that when workers get fair compensation the entire community benefits. I'm proud to fight to create an economy that helps Oregon's families get ahead, not just those at the very top. "

Despite widespread gains in worker productivity, alongside stark rises in the cost of living, Congress has not increased the federal minimum wage since the first Obama administration in 2009. Since 1979, workers have become some 92 percent more productive, but wages have risen by less than 34 percent. If the minimum wage had kept pace with inflation and worker productivity since 1968, it would have been roughly $25 an hour in 2023. There is nowhere in America where a worker with just one dependent can afford their basic needs by working full time at an hourly wage under $25.

Oregon's minimum wage is already double the current national minimum wage of $7.25 an hour. Oregon's wages already increase under state law annually through a three-tiered system, with the next increase set for this week on July 1st, 2026. By the time the changes included in the federal Living Wage For All Act kick in for the middle "standard" zone, Oregon's minimum wage would already be hovering around $18 an hour.

The Living Wage For All Act would ensure:

1. A minimum wage increase to $25/hour over several years, including an increase from $7.25 to $12 in the first year.
2. No employee will be paid below the minimum wage. Existing subminimum wages for tipped workers, workers with disabilities, and youth workers will be phased out gradually.
3. Large employers with more power in the marketplace will lead the way, and smaller employers will have a longer transition period.
4. After the minimum hourly wage reaches $25, it will increase in future years to equal two-thirds of the national median wage.

In Oregon, the Living Wage For All Act would affect the state's current wage increase schedule in several years, as follows:

1. The Portland Metro area would increase in 2031 when the rate increases to $20 an hour. After 2031, the hourly minimum wage will increase by 60 cents per year until 2039.
2. The standard zone and non-urban wages would increase in 2029 when the rate increases to $18 an hour. After 2029, the hourly minimum wage will also increase by 60 cents per year until 2039.

The bill was led by U.S. Senator Chris Murphy, D-Conn. In addition to Wyden, the bill was also cosponsored by U.S. Senators Richard Blumenthal, D-Conn., and Andy Kim, D-N.J., with U.S. Representatives Delia Ramirez, D-Ill., Analilia Mejia, D-N.J., Jesús "Chuy" García, D-Ill., and Lateefah Simon, D-Calif.

A summary of the bill is here.

The full text of the bill is here.