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Federal Minimum Wage Increase to $17.00 and Elimination of Subminimum Wages

This Act gradually raises the federal minimum wage to $17.00 per hour over five years, followed by annual adjustments based on median wage growth. Crucially, it phases out lower subminimum wages for tipped workers, young employees, and individuals with disabilities, ensuring they eventually receive the full standard minimum wage.
Key points
The federal minimum wage will increase incrementally to $17.00 per hour over a five-year period.
After the initial increase, the minimum wage will be automatically adjusted annually based on the growth of the median hourly wage.
The separate, lower minimum wage for tipped employees will be phased out over six years, requiring employers to pay the full standard minimum wage thereafter.
Special certificates allowing employers to pay individuals with disabilities less than the minimum wage will be eliminated after five years.
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Status:
Introduced
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Additional Information
Raise the Wage Act of 2025
Print number: HR 2743
Sponsor: Rep. Scott, Robert C. "Bobby" [D-VA-3]
Process start date: 2025-04-08