Tagged: wages and earnings

Original Living American Wage Act or the Original LAW ActThis bill increases the federal minimum wage according to a formula specified in the bill.First, the bill increases the minimum hourly wage to $10.59 beginning on January 1, 2026, and increases the minimum hourly wage by $4 annually from January 1, 2027, through January 1, 2030.Next, beginning on January 1, 2031, the Department of Labor shall increase the minimum hourly wage every seven years according to a specified formula. The formula establishes the minimum hourly wage as the wage sufficient for a person working 1,799 hours per year (approximately 35 hours per week) to earn an annual income that is 40% higher than the federal supplemental poverty threshold for a renter family of four, with two children under the age of 18, as published by the Bureau of Labor Statistics for the preceding year. However, if this formula results in a reduction, the minimum hourly wage may not be lowered. 

Federal Employee Performance and Accountability Act of 2025This bill establishes a pilot program making pay increases for certain federal employees contingent on job performance.Under the bill, each executive agency must identify employees to participate in the five-year pilot program from among employees classified at or above the GS-11 level and holding positions with clearly measurable performance criteria. Each agency must select 1%-10% of these employees to participate in the program. An agency may opt out if participation potentially risks national security or public safety.The bill provides that a participating agencymust increase an employee's pay by up to 10% if the employee significantly exceeded established performance metrics during the preceding year,  may not increase the pay of an employee who met established performance metrics during the preceding year, and must reduce by 10% the pay of an employee who rates below expectations for the preceding year.Participating employees are ineligible for annual or locality-based pay increases authorized under current law during the pilot. The bill also requires agencies to establish performance plans and evaluation systems for participating employees. Agencies must also provide training and resources to help participating employees understand and meet performance requirements.Participating agencies must report cost savings, productivity metrics, and other information to the Office of Management and Budget (OMB) every year. OMB and the Government Accountability Office must jointly report on the final outcome of the program. 

Small Business Flexibility ActThis bill provides statutory authority for the pooling of tips among two pools of employees. The first pool consists of employees who customarily and regularly receive tips (as is permitted under the current statute). The second pool consists of (1) employees who customarily and regularly receive tips and are paid at least minimum wage, and (2) employees who do not customarily and regularly receive tips.