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S 4981

Living Wage For All Act

119th Congress Introduced by Richard Blumenthal and 3 co-sponsors

The bill aims to raise everyone to a national living wage, eliminating subminimums and forcing large employers to reach $25/hour, with phased, index-linked increases for all.

Introduced in Senate
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WeVote Research Nonpartisan
Bill Summary · S 4981

Overview

S.4981, the Living Wage For All Act, introduced July 14, 2026, aims to place the federal minimum wage on a durable path toward a living wage, indexed to wage growth, with a phased transition that requires large, highly profitable employers to lead and gradually bring the remainder of employers up. It eliminates subminimum wages and establishes a schedule designed to reach a national living wage target, including $25 per hour for large employers within a defined timeframe and two-thirds of the national median wage as a basis for annual adjustments.

Main purpose and intent

  • Create a durable, wage-growth–oriented path to a living wage for all workers.
  • Align federal minimum wage with the cost of living and the national median wage over time.
  • Require large, highly profitable corporations to lead the transition.
  • Eliminate subminimum wages for tipped workers and others, replacing them with a unified wage schedule.
  • Provide ongoing annual wage adjustments keyed to wage growth and economic conditions.

Key provisions and changes

  • Definition of “Large employer”:
    • Annual gross revenue of $1,000,000,000 or more, or
    • 500 or more employees nationwide.
  • Minimum wage increases (Section 6(a)(1)) for large and non-large employers:
    • Large employers:
    • $12.00/hour at the effective date.
    • Stepwise increases to $15, $18, $20, $22.50, and $25.00 over five years.
    • After five years, the greater of the preceding year’s amount or the annual wage under subsection (h) (national median-based wage) applies, starting from year 6 onward.
    • Non-large employers:
    • $12.00/hour at the effective date.
    • Stepwise increases to $14, $16, $18, $20, $20.60, $21.20, $21.80, $22.40, $23.00, $23.60, $24.20, $25.00 over 12 years.
    • After year 13, the greater of the preceding year’s amount or the national median-based wage applies.
  • National median hourly wage (Section 5):
    • Beginning in year 6 after enactment, the Secretary must publish the amount equal to two-thirds of the median hourly wage for all employees (as per the latest CPS data) for use under subsection (h).
  • Tip wages and tipped employees (Section 6):
    • Cash wage minimum for tipped employees increases in parallel with the general schedule (large and non-large employers), with a timetable that mirrors the non-tipped wage progression.
    • Employees would retain the right to keep tips, and employers must inform employees of this right.
    • A scheduled repeal of the separate tipped wage system is proposed once certain wage parity milestones are reached.
    • Public notice provisions for large and other employers’ wage increases are added.
  • Youth labor provisions (Section 7):
    • For newly hired workers under 20, base wages rise in a schedule tied to the Living Wage For All Act’s effective date, with increases mirroring the general tracks for large and non-large employers.
    • Separately repeals the distinct lower youth minimum wage, subject to phased implementation.
  • Special certificates for individuals with disabilities (Section 9):
    • Transitions individuals with disabilities working under 14(c) certificates to higher wage rates, with detailed step increases similar to the general schedule for large and non-large employers.
    • Prohibits new special certificates after enactment.
    • Provides transition assistance and resources for compliance and job opportunities.
    • Sets a sunset: the authority to issue special certificates expires once the wage rates reach parity with the general minimum wage levels (both halves).
  • Administrative and notice requirements (Sections 8 and 10):
    • The Secretary must publish wage increase notices in the Federal Register and on the Labor Department website at least 60 days before increases take effect.
    • Overall effective date: the act (and its amendments) takes effect on the first day of the calendar year after enactment, with specific provisions phased in thereafter.

Who would be affected

  • Large employers (≥ $1B annual revenue or ≥ 500 employees): required to reach $25/hour within five years, with annual adjustments thereafter.
  • Employers not meeting the large-employer threshold: a slower but similar phased schedule to reach $25/hour by year 13, plus annual adjustments thereafter.
  • Tipped employees: cash minimum wages harmonized with overall wage schedule; tips can be retained by employees with notice requirements.
  • Youth workers under 20: treated under a staged wage progression aligned with the broad wage increases, replacing the separate lower youth wage.
  • Individuals with disabilities (14(c) workers): wage adjustments toward parity with non-disabled workers, with a sunset on special certificates and transition supports.

Procedural and timeline notes

  • Effective date: start of the calendar year following enactment, with major wage increases phased in over multiple years (up to year 13 for non-large employers; year 5 for large employers).
  • Annual updates: the national median wage (for use under subsection (h)) is published each year (two-thirds of the current national median wage).
  • Notice requirements: 60 days’ advance publication of wage increase notices by the Secretary.
  • Sunset and transition rules: the act includes a sunset for the special minimum wage certificates under 14(c) once parity with general minimum wages is achieved, plus mandated transition assistance for disability-related wage transitions.

Note: This summary distills the bill’s provisions and intended effects based on the text provided. For any implementation or legal interpretation, refer to the final enacted language and accompanying legislative notes.

Compiled from official sources — confirm details with the bill’s official record.

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