Federal Minimum Wage Increase to $17 and Indexing to Median Wage.
This act gradually raises the federal minimum wage to $17 per hour over six years. After this period, the wage will be automatically adjusted annually based on the increase in the median hourly wage of all employees. A major change is the phased elimination of subminimum wages for tipped workers and individuals with disabilities, ensuring they eventually receive the full standard minimum wage.
Key points
The minimum wage will increase to $17 per hour over 6 years, and subsequently be indexed annually to the median wage of all employees.
The lower cash wage for tipped employees (tip credit) will be phased out over 7 years, requiring employers to pay the full standard minimum wage.
The authority to pay subminimum wages to workers with disabilities (Section 14(c) certificates) will be phased out over 5 years and eventually repealed.
The minimum wage for newly hired employees under 20 will increase and eventually equal the standard minimum wage.
Status:
Expired
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