U.S. income and taxes

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.

Referred to the House Committee on Education and Workforce.

Small Business Flexibility Act This 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.

Referred to the House Committee on Education and Workforce.

VA Work-Study Improvement Act This bill modifies certain pay and eligibility requirements under the Department of Veterans Affairs (VA) work-study program, including minimum wage and timesheet requirements. The bill expands the list of qualifying work-study activities to include state government, local government, or nonprofit organization activities that would benefit veterans or members of the Armed Forces. The bill also modifies minimum wage requirements under the work-study program. Under the bill, the hourly minimum wage paid under the work-study program must be the higher of (1) the minimum rate of basic pay for any federal employee (under the general schedule or federal wage system pursuant to specified regulations), (2) the hourly minimum wage in the state where the services are to be performed, or (3) the hourly minimum wage of the local government with jurisdiction over the area in which the services are to be performed. Additionally, the VA must ensure that (1) an individual participating in a qualifying work-study activity may electronically record such hours, and (2) the supervisor may electronically approve such records. Finally, the VA must annually publish specified information regarding qualifying work-study activities carried out during the year, including the demographics of individuals participating in the program.

Referred to the Subcommittee on Economic Opportunity.

Ensuring Workers Get PAID Act of 2025 This bill provides statutory authority for the Payroll Audit Independent Determination program, which is administered by the Department of Labor and allows employers to self-report federal minimum wage and overtime compensation violations as an alternative to litigation. Employers may apply to the program by submitting certain information from a self-audit that includes calculations of any unpaid minimum or overtime wages. Labor must verify the calculations and, if the application is approved, supervise a settlement with affected employees that provides payment of any unpaid wages. Employees who accept a settlement under the program waive their private right of action to recover the unpaid wages provided under the settlement.

Placed on the Union Calendar, Calendar No. 464.

This bill specifies a legal standard for determining whether an individual is considered an independent contractor rather than an employee for the purposes of federal labor laws that address issues such as the federal minimum wage, overtime compensation, and collective bargaining. The rights and protections provided by these laws exclusively apply to employees. Under the bill, an individual is considered an independent contractor if (1) another individual or entity does not exercise significant control over the details of how the individual's work is performed, without regard to any control the other individual or entity may exercise over the final result of the work performed; and (2) while performing such work, the individual has opportunities and risks inherent with entrepreneurship (for example, the discretion to exercise professional judgment). The bill also sets forth factors that may not be used to determine whether an individual is an employee. Specifically, factors such as whether another individual or entity requires the individual to meet certain legal, health and safety, insurance, or performance requirements may not be used to make such a determination.

Placed on the Union Calendar, Calendar No. 431.

Tipped Employee Protection Act This bill modifies the definition of a tipped employee under the Fair Labor Standards Act of 1938 (FLSA) to exclude consideration of an employee's duties when determining if the employee is a tipped employee. Under current law, tipped employees may be paid less than the federal minimum wage (currently $7.25 an hour), but the total of their cash wage and tips must be at least equal to the federal minimum wage. Under the FLSA, a tipped employee is currently a worker who customarily and regularly receives more than $30 a month in tips. The bill broadens the definition of tipped employee to include any worker who receives tips and other cash wages for a work period at a rate that is at least the federal minimum wage, without regard to the duties of the employee. Under the bill, the work period is a work period that is determined by the employer.

POSTPONED PROCEEDINGS - Pursuant to clause 1(c) of rule XIX, the Chair announced that further proceedings on H.R. 2312 is postponed.