Phased Federal Minimum Wage Increase to $17 and Elimination of Subminimum Wages.
This Act mandates a phased increase in the federal minimum wage to $17 per hour over five years, followed by annual adjustments tied to the median hourly wage growth. Crucially, it eliminates subminimum wages for tipped employees, young workers, and individuals with disabilities, ensuring they eventually receive the full standard minimum wage.
Key points
The federal minimum wage will rise to $17 per hour over a 5-year period, with subsequent annual increases linked to median wage growth.
The separate, lower minimum wage for tipped employees will be phased out over 7 years, requiring employers to pay the full minimum wage plus tips retained by the employee.
The authority to pay workers with disabilities a subminimum wage will be repealed after a 5-year transition period.
Status:
Introduced
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