Original LAW Act

Original Living American Wage Act or the Original LAW Act This 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.

Source: Congressional Research Service (CRS).