“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) from $7.25 an hour to the following phased increases, beginning on the effective date under section 7 of the Give America a Raise Act: $10.00 an hour immediately; $13.00 an hour one year later; $16.50 an hour two years later; and $20.00 an hour three years later. The section further requires annual adjustments beginning four years after the effective date, with the amount set by the Secretary of Labor at the prior year's level increased by the greater of the annual CPI-U increase or GDP increase (or unchanged if both are flat), rounded up to the nearest $0.05.
This section revises the definition of wages for tipped employees under the Fair Labor Standards Act (FLSA) (29 U.S.C. 203(m)). (As background, the FLSA tip credit permits employers of tipped employees—such as waitstaff—to pay a cash wage of $2.13 per hour federally, with tips credited toward the $7.25 minimum wage, subject to state law.) Specifically, the section (1) replaces the cash wage requirement with a phased schedule—$6.00 per hour on the effective date under section 7 of the Give America a Raise Act, increasing annually to $8.00, $10.00, $12.50, $15.00, $17.50, and $20.00 six years later, and thereafter matching the general minimum wage under FLSA section 6(a)(1); (2) affirms tipped employees' right to retain all tips received and requires employers to inform employees of this right; (3) schedules repeal of the separate cash wage and tip credit for tipped employees—requiring payment of the full minimum wage under section 6(a)(1)—effective one day after the $20.00 cash wage takes effect (approximately seven years after the bill's effective date); and (4) expands FLSA civil penalties under section 16 to cover tips that are unlawfully "kept or used" (previously, "kept" only).
This section revises the subminimum wage rate under the Fair Labor Standards Act (FLSA) for newly hired employees under age 20 during their first 90 consecutive calendar days of employment (i.e., youth minimum wage) by replacing the prior flat rate of $4.25 an hour with a tiered schedule beginning at $6.00 an hour for the one-year period starting on the effective date specified in section 7 of the underlying Act; subsequent annual increases equal to the lesser of $2.00 or the amount needed to match the standard FLSA minimum wage under section 6(a)(1), until equivalence is reached; and thereafter, the standard minimum wage under section 6(a)(1). The section further repeals the youth subminimum wage provision in its entirety, along with related references in FLSA notice requirements, effective one day after the scheduled wage under the new provision fully matches the standard minimum wage under section 6(a)(1).
This section directs the Secretary of Labor to publish in the Federal Register and on the Department of Labor website, not later than 60 days prior to the effective date, a notice announcing any increase in required wages under subsection (a)(1) (general minimum wage), subparagraph (B) or (C) of subsection (g)(1) (certain Puerto Rico and territorial minimum wages), subclauses (II) through (VIII) of section 3(m)(2)(A)(i) (tipped employee cash wages), or section 14(c)(1)(A)(i) (special minimum wages for workers with disabilities).
This section revises the special minimum wage authority under section 14(c) of the Fair Labor Standards Act (FLSA) (i.e., certificates allowing employers of workers with disabilities to pay wages below the federal minimum based on individual productivity, previously with no statutory floor) by (1) requiring wages at the greater of a phased-in schedule—$5.00 per hour on the effective date of the Give America a Raise Act, $8.00 one year later, $11.00 two years later, $14.00 three years later, $17.00 four years later, $20.00 five years later, and the general minimum wage under FLSA section 6(a)(1) six years later—or the individual's wage rate the day before enactment; (2) prohibiting issuance of new special certificates after enactment; (3) directing the Secretary of Labor to provide transition assistance, including technical support for employers and employment referrals for workers; and (4) sunsetting all special certificate authority the day after the six-year wage rate takes effect. This section also amends FLSA section 6(i), effective upon sunset, by eliminating the requirement to publish notices of special minimum wage rate changes.