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IA SF101

A bill for an act increasing the state minimum hourly wage and providing for subsequent increases by the same percentage as the increase in federal social security benefits.


summary

Introduced
01/22/2025
In Committee
01/22/2025
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill increases the state minimum hourly wage to $15.00 as of July 1, 2025. The bill increases the state minimum hourly wage for employees employed for less than 90 days to $14.10 as of July 1, 2025. The bill also increases the state minimum hourly wage, including the minimum hourly wage established for employees employed for less than 90 days, annually on July 1, beginning July 1, 2026, by the same percentage as the cost-of-living increase, if any, in social security benefits effective as of the previous December, as authorized by the federal social security administration. In no case shall the state hourly wage be decreased.

AI Summary

This bill increases the state minimum hourly wage to $15.00 as of July 1, 2025, with a lower rate of $14.10 for employees in their first 90 days of employment. Starting July 1, 2026, the minimum wage will be automatically adjusted annually based on the cost-of-living increase in Social Security benefits (as determined by the federal Social Security Administration), ensuring that wages keep pace with inflation. The bill specifically modifies existing state labor law to implement these changes, replacing the previous minimum wage rates of $7.25 and $6.35 per hour, respectively. Importantly, the bill includes a provision that prevents the minimum wage from being decreased, providing a safeguard for workers against potential economic downturns. This legislation aims to provide workers with a more livable wage that can better keep up with the rising cost of living, by tying future increases to a standard federal cost-of-living metric.

Committee Categories

Labor and Employment

Sponsors (11)

Last Action

Subcommittee: Driscoll, Donahue, and Lofgren. S.J. 137. (on 01/23/2025)

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