Raise the Wage Act of 2025

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.

Votes

No votes have been recorded for this legislation yet.

News