“A bill to provide for increases in the Federal minimum wage, and for other purposes.”
No CRS summary available for this bill.
This section revises the minimum wage rates under the Fair Labor Standards Act (FLSA) for employees engaged in commerce or in the production of goods for commerce, or employed in an enterprise engaged in such activities, replacing the current rate of $7.25 an hour with the following phased increases beginning on the effective date under section 7 of the Raise the Wage Act of 2025: (1) $9.50 an hour; (2) $11.00 an hour, 1 year after such date; (3) $12.50 an hour, 2 years after such date; (4) $14.00 an hour, 3 years after such date; (5) $15.50 an hour, 4 years after such date; and (6) $17.00 an hour, 5 years after such date. Beginning 6 years after such effective date, and annually thereafter, it requires the Secretary of Labor to set the minimum wage at not less than the prior amount, increased by the annual percentage increase (if any) in the median hourly wage of all employees as determined by the Bureau of Labor Statistics using the most recent available data, and rounded up to the nearest multiple of $0.05. (Thus, the minimum wage for covered employees—approximately 85 million workers—will rise above the current $7.25 an hour and continue increasing indefinitely based on wage growth.)
This section revises the treatment of tipped employees under the Fair Labor Standards Act (FLSA) as follows: (1) increases the required minimum cash wage paid such employees—which is currently $2.13 per hour—in phases to $6.00 per hour on the effective date under section 7 of the Raise the Wage Act of 2025, $8.00 per hour one year later, $10.00 two years later, $12.00 three years later, $13.50 four years later, $15.00 five years later, $17.00 six years later, and the general minimum wage under FLSA section 6(a)(1) thereafter; (2) affirms tipped employees' right to retain all tips received, requires employers to inform employees of this right, and prohibits employers from keeping or using such tips (with enhanced civil penalties under FLSA section 16); and (3) repeals the tip credit (i.e., permission for tips to count toward the minimum wage requirement) effective one day after the cash wage reaches the general minimum wage under FLSA section 6(a)(1), with conforming changes to notice requirements. (As background, the FLSA currently allows employers of tipped employees—those who customarily receive over $30 per month in tips—to pay a subminimum cash wage if tips received by the employee make total pay at least the federal minimum wage.)
This section revises the minimum wage rate for newly hired employees under 20 years old under FLSA section 6(g)(1)—applicable during their first 90 days of employment—to $6.00 per hour (from $4.25 per hour) for the one-year period beginning on the effective date under section 7 of the Raise the Wage Act of 2025, with annual increases thereafter by the lesser of $1.75 or the amount necessary to equal the minimum wage under subsection (a)(1) until parity is reached, after which it equals the subsection (a)(1) wage. The section further directs repeal of subsection (g) and conforming amendments to subsection (i) (i.e., striking certain cross-references), effective one day after the youth wage under subsection (g)(1)(C) takes effect.
This section directs the Secretary of Labor, not later than 60 days prior to the effective date of any increase, to publish in the Federal Register and on the Department of Labor website a notice announcing each increase in the required wage under (1) the general minimum wage of subsection (a)(1), (2) the youth minimum wage rates of subsection (g)(1)(B) or (C), (3) the minimum cash wage for tipped employees under section 3(m)(2)(A)(i)(II) or (III), or (4) the special minimum wage for workers with disabilities under section 14(c)(1)(A).
This section revises the special minimum wage authority for workers with disabilities under section 14(c) of the Fair Labor Standards Act (29 U.S.C. 214(c))—which allows the Department of Labor to issue certificates permitting employers to pay such workers wages below the statutory minimum based on individual productivity relative to non-disabled workers—as follows: (1) establishes a new statutory minimum wage floor for all workers under existing certificates, phased in annually to $15.50 an hour after four years and thereafter to the general minimum wage rate under FLSA section 6(a)(1) (currently $7.25 an hour), or the higher of that amount or the individual's prior rate if applicable; (2) prohibits issuance of new special certificates after enactment; (3) directs the Secretary of Labor to provide transition technical assistance to existing certificate holders and employment information to affected workers upon request; and (4) sunsets the special certificate authority entirely after the phase-in period (i.e., beginning the day after the general minimum wage rate takes effect under the new schedule). This section further amends FLSA section 6(i) (29 U.S.C. 206(i)), which requires publication of applicable minimum wage rates, by removing the cross-reference to section 14(c)(1)(A) after the sunset date.