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The Biden plan also includes a provision to more than double the federal minimum wage to $15 an hour. Congress hasn't raised it from $7.25 in over a decade. But a timeline remains unclear.
Republicans staunchly oppose it, warning of job losses at a moment many small businesses are filing for bankruptcy and laying off workers because of the pandemic.
The Congressional Budget Office, a nonpartisan government agency, forecasted that 27 million workers would experience a pay boost with the measure. They also projected 1.3 million employees would be lifted out of poverty and an equal number of jobs would be lost.
In 2019, the Democratic-led House approved a plan to gradually lift the federal minimum wage to $15 an hour by 2025.
A growing body of research indicates that some state and city-wage increases in recent years hasn't set back the ability of employers to hire more workers. Evidence of job losses has not been consistent.
Yellen, a former Federal Reserve chair, said in her hearing that job losses were generally "very minimal" in states that raised worker pay.