This bill gradually raises the federal minimum wage to $17 an hour and then adjusts it annually based on median wages. It also updates wage rules for tipped workers, young workers under 20, and individuals with disabilities.
Who this affects
Minimum wage workers · Tipped employees · Young workers · Individuals with disabilities
What changes is this bill making?
1Phase in increases to the federal minimum wage from $9.50 in year one up to $17 an hour in year six, then adjust it each year based on changes in the median hourly wage of all workers.
2Require the Secretary of Labor to use data from the BLS (Bureau of Labor Statistics) to set annual minimum wage increases tied to the median hourly wage and round up to the nearest five cents.
3Raise the base cash wage for tipped workers in steps from $6.00 to $17.00 over seven years and ensure employees keep all their tips, then eliminate the separate tipped rate.
4Increase the subminimum wage for workers under 20 in annual steps from $6.00 until it equals the standard minimum wage, then phase out the separate youth rate.
5Phase out special lower wage certificates for workers with disabilities by raising their wages in stages from $5.00 to the standard minimum wage over five years, ban new certificates, and offer technical assistance and transition services.
6Require the Department of Labor to publish notices of all upcoming wage increases at least 60 days before they take effect.
