S. 1332: Raise the Wage Act of 2025
This bill, titled the Raise the Wage Act of 2025, proposes several changes to the federal minimum wage and regulations surrounding employee wage standards. Below are the key provisions of the bill:
Increases to Minimum Wage
The bill outlines a schedule for increasing the federal minimum wage as follows:
- $9.50 per hour starting on the effective date of the bill.
- $11.00 per hour starting one year after the effective date.
- $12.50 per hour starting two years after the effective date.
- $14.00 per hour starting three years after the effective date.
- $15.50 per hour starting four years after the effective date.
- $17.00 per hour starting five years after the effective date.
- Annual adjustments based on the median hourly wage of all employees starting six years after the effective date.
Minimum Wage Adjustments
The Department of Labor will determine annual adjustments to the minimum wage based on increases in the median hourly wage of employees, ensuring the minimum wage keeps pace with earnings growth.
Tipped Employees
Changes are proposed for tipped employees, specifically:
- Initial cash wage for tipped employees will be set at $6.00 an hour and will gradually increase to $17.00 over a six-year period.
- Employers must inform tipped employees of their right to retain all tips received. This means employees can keep tips without any deductions from their employer.
- The separate minimum wage for tipped workers will ultimately be eliminated, aligning it with the general minimum wage standards.
Newly Hired Employees Under 20
The bill establishes a minimum wage for newly hired employees under the age of 20, starting at:
- $6.00 an hour for the first year.
- Subsequent annual raises until their wage equals the standard minimum wage.
The separate minimum wage for this group will also be phased out over time.
Individuals with Disabilities
Provisions are included to ensure fair wages for individuals with disabilities:
- Wages for individuals with disabilities will be increased over time, starting at $5.00 an hour and reaching the prevailing minimum wage by the fifth year after the bill’s effective date.
- No new special wage certificates will be issued that allow employers to pay below minimum wage to disabled individuals.
Current special certificates will eventually expire, ensuring that individuals with disabilities receive fair wages.
Notice of Wage Changes
The bill mandates that the Department of Labor must publish notices regarding any upcoming wage increases at least 60 days prior to these changes taking effect. This aims to ensure transparency and allow businesses time to adjust to new wage requirements.
General Provisions
The remaining provisions of the bill outline its effective date, which will be the first day of the third month after it is enacted, unless otherwise specified for certain sections.
Relevant Companies
- MCD - McDonald’s Corporation: Changes to minimum wage could impact labor costs significantly since this is a large employer of minimum wage workers.
- DIS - The Walt Disney Company: As another large employer in the service industry, wage increases could affect the operational costs associated with their parks and resorts.
- CMG - Chipotle Mexican Grill, Inc.: Similar to others in the hospitality and food service sectors, wage policy changes could lead to increased labor costs.
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
35 bill sponsors
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TrackBernard Sanders
Sponsor
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TrackAngela Alsobrooks
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TrackTammy Baldwin
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TrackRichard Blumenthal
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TrackLisa Blunt Rochester
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TrackCory A. Booker
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TrackMaria Cantwell
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TrackChristopher A. Coons
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TrackTammy Duckworth
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TrackRichard J. Durbin
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TrackJohn Fetterman
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TrackRuben Gallego
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TrackKirsten E. Gillibrand
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TrackMazie K. Hirono
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TrackTim Kaine
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TrackMark Kelly
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TrackAndy Kim
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TrackAmy Klobuchar
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TrackEdward J. Markey
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TrackJeff Merkley
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TrackChristopher Murphy
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TrackPatty Murray
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TrackAlex Padilla
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TrackGary C. Peters
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TrackJack Reed
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TrackBrian Schatz
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TrackAdam B. Schiff
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TrackElissa Slotkin
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TrackTina Smith
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TrackChris Van Hollen
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TrackRaphael G. Warnock
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TrackElizabeth Warren
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TrackPeter Welch
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TrackSheldon Whitehouse
Co-Sponsor
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TrackRon Wyden
Co-Sponsor
Actions
2 actions
| Date | Action |
|---|---|
| Apr. 08, 2025 | Introduced in Senate |
| Apr. 08, 2025 | Read twice and referred to the Committee on Health, Education, Labor, and Pensions. |
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