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International Business Times UK
International Business Times UK
World
Michael Toledo

Minimum Wage Shake-Up Explained: Why Smaller Firms Get Until 2038 to Reach $25 an Hour

The federal minimum wage in the United States has remained at $7.25 an hour since 2009, despite rising living costs. (Credit: Lukasz Radziejewski/Pexels)

A new federal proposal introduced in the US Congress could raise the national minimum wage to $25 (around £18) an hour under a phased plan that would see large employers comply by 2031 and smaller businesses by 2038, marking the most significant potential wage overhaul since 2009.

The Living Wage for All Act, introduced by Democratic lawmakers on Tuesday and referred to the House Committee on Education and the Workforce, aims to address rising living costs and wage stagnation affecting millions of American workers across the United States.

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