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Congress Proposes Raising Federal Minimum Wage to $17 Over Five Years

Raise the Wage Act of 2025

11 months ago·View on Congress.gov

Legislative Progress

Filed
Review
Senate
House
President

Key Points

  • The bill would raise the federal minimum wage from the current $7.25 to $17.00 per hour over a five-year period. The first increase to $9.50 would happen about three months after the bill becomes law, followed by yearly raises until it reaches the $17.00 target.
  • After the wage reaches $17.00, it would automatically increase every year based on how much the average American worker's pay goes up. This ensures the minimum wage keeps pace with the economy without needing a new act of Congress each time.
  • The policy ends the lower pay rates for tipped workers, like servers and bartenders. Their base pay would slowly rise from $6.00 until it matches the full federal minimum wage, and they would still have the right to keep all their tips.
  • It also phases out lower pay rates for workers under age 20 and people with disabilities. Currently, some employers are allowed to pay these groups less than the standard minimum, but this bill would bring everyone up to the same $17.00 level over several years.
  • The Department of Labor would be required to notify the public and post the new wage rates online at least 60 days before each scheduled increase takes effect so that businesses and workers can prepare.
Labor EmploymentEconomy FinanceCivil Rights

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

State Impacts

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Apr 8, 2025Senate

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Apr 8, 2025

Introduced in Senate

Related News

2 articles

Source Information

Document Type

Congressional Bill

Official Title

Raise the Wage Act of 2025

Bill NumberS 1332
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Health, Education, Labor, and Pensions.

Sponsor

Cosponsors

(34)
D: 34

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.