H.R. 7471: Give America a Raise Act

This bill, named the "Give America a Raise Act," primarily focuses on increasing the federal minimum wage and adjusting regulations concerning tipped employees and younger workers. Below is a summary of the key provisions outlined in the bill:

Minimum Wage Increases

The bill proposes a phased increase in the federal minimum wage as follows:

• $10.00 per hour starting on the effective date of the Act.
• $13.00 per hour after one year.
• $16.50 per hour after two years.
• $20.00 per hour after three years.
• After four years, the minimum wage will be adjusted annually based on inflation or the growth in the gross domestic product.

Adjustments Based on Economic Indicators

Every year, the Secretary of Labor is required to assess and adjust the minimum wage based on:

• The annual percentage increase in the Consumer Price Index.
• The annual percentage increase in the Gross Domestic Product.

If neither indicator reflects an increase, the minimum wage will not change for that year.

Tipped Employees

The legislation addresses wage requirements for tipped employees, proposing the following phased cash wage increases:

• $6.00 per hour starting on the effective date.
• $8.00 per hour after one year.
• $10.00 per hour after two years.
• $12.50 per hour after three years.
• $15.00 per hour after four years.
• $17.50 per hour after five years.
• $20.00 per hour after six years.

The bill emphasizes that tipped employees must retain all tips received, and employers must inform employees of their rights regarding tips.

Base Wages for Newly Hired Employees Under 20

The minimum wage for newly hired employees under the age of 20 will increase as follows:

• $6.00 per hour for the first year.
• Subsequent annual increases until they reach the standard minimum wage for their age group.

The bill includes provisions for the eventual repeal of the lower wage for this category after a specified period.

Publication of Wage Increases

The Secretary of Labor is mandated to publish notices regarding upcoming changes in the wage schedule at least 60 days prior to their effective date.

Wages for Individuals with Disabilities

Provisions in this bill also focus on transitioning individuals with disabilities to receive fair wages. The following are proposed increases for these workers:

• $5.00 per hour starting on the effective date.
• Gradual increases each year until they reach the minimum wage set for non-disabled workers.

This includes a prohibition on issuing new special certificates that allow lower wages for disabled individuals after the Act is enacted.

General Effective Date

The bill states that it will take effect on the first day of the third month after it is enacted unless specified otherwise.

Relevant Companies

• AMZN: Amazon may be significantly impacted due to its large workforce and dependence on hourly wage labor, especially considering the increase in minimum wage over the next several years.
• DIS: The Walt Disney Company could see increased labor costs, as many of its employees are in low-wage positions that would be affected by these raises.
• MCD: McDonald's, operating numerous franchises with minimum wage workers, would face higher labor costs affecting its profitability and operational strategies.