The Palau House of Delegates has not acted on a bill which would raise the minimum hourly wage by 50 cents to three US dollars.
The Palau Horizon says there was a lack of a quorum after the Senate passed the bill in a final reading.
The session has now closed.
The current minimum wage law does not allow most non-resident workers to receive minimum wages.
The new measure redefines who is eligible to receive the minimum wage.