Story perspectives

Sanders Proposes $25 Hourly Wage and $37.50 Overtime

By Drooid · Sep 20, 2026, 10:40 PM UTC · How we work

Summary

Story summary

Senator Bernie Sanders proposes a $25 hourly wage and $37.50 overtime rate.
The plan adds $5,000 in annual wages per employee working a 40-hour week.
Employers also face about 7% payroll taxes, costing roughly $350 per employee each year.
A 25-employee firm would pay $133,750 more annually; a 50-employee firm $267,500 more.
Sanders calls for an AI development moratorium while offering firms incentives to automate, benefiting major AI CEOs.

History

Historical Context

The Fair Labor Standards Act of 1938, signed by President Franklin D. Roosevelt, set a federal minimum wage of 25 cents per hour. Subsequent amendments—Truman’s 1949 raise to 75 cents and the 2009 increase to $7.25—expanded coverage. Senator Bernie Sanders’ 2024 bill to lift the wage to $25 per hour revives the New Deal’s goal of broad wage protection.

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Story summary

Senator Bernie Sanders proposes a $25 hourly wage and $37.50 overtime rate.
The plan adds $5,000 in annual wages per employee working a 40-hour week.
Employers also face about 7% payroll taxes, costing roughly $350 per employee each year.
A 25-employee firm would pay $133,750 more annually; a 50-employee firm $267,500 more.
Sanders calls for an AI development moratorium while offering firms incentives to automate, benefiting major AI CEOs.

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