S. 3780: Give America a Raise Act

The bill known as the Give America a Raise Act aims to increase the federal minimum wage and make various adjustments regarding wage standards in the Fair Labor Standards Act (FLSA). Here are the main points of the bill:

Minimum Wage Increases

• The minimum wage will be increased to:
  • $10.00 per hour starting from the effective date of the legislation.
  • $13.00 per hour one year after the effective date.
  • $16.50 per hour two years after the effective date.
  • $20.00 per hour three years after the effective date.
  • After the third year, the minimum wage will be adjusted annually based on inflation and GDP growth, determined by the Secretary of Labor.

Tipped Employees

• The cash wage for tipped employees will also increase:
  • $6.00 per hour starting from the effective date.
  • $8.00 per hour one year after.
  • $10.00 per hour two years after.
  • $12.50 per hour three years after.
  • $15.00 per hour four years after.
  • $17.50 per hour five years after.
  • $20.00 per hour six years after.
  • After the sixth year, the base wage will follow the general minimum wage increase.
• Employees will retain all tips received, and employers must inform employees of their rights regarding tips.
• The bill calls for the eventual repeal of the separate minimum wage standard for tipped employees so that they will earn the regular minimum wage.

Wages for Newly Hired Employees Under 20

• For newly hired employees under the age of 20, the minimum wage will be set at:
  • $6.00 per hour starting on the effective date.
  • Subsequent increases will be set to match the standard minimum wage or increase by a maximum of $2.00 per year until it aligns with the regular minimum wage.
• The special lower minimum wage for this group will eventually be repealed.

Wages for Individuals with Disabilities

• The bill proposes a transition to minimum wages for individuals with disabilities working under special certificates. The minimum wage for these individuals will be set to:
  • $5.00 per hour starting on the effective date.
  • Annual increases up to $20.00 an hour over the next five years, after which they will match the regular minimum wage.
• No new special certificates will be issued for employers after this bill is enacted, and existing certificates will expire over time.

Enforcement and Publication of Changes

• The bill requires the Secretary of Labor to publish notices about upcoming minimum wage increases at least 60 days in advance, to ensure that both employees and employers are aware of the changes.

General Effective Date

• The provisions of the act will take effect on the first day of the third month following the enactment of the legislation, unless stated otherwise in the Act.

Relevant Companies

• MCD - McDonald's: As a major employer of hourly wage workers, McDonald's would be affected by increases in minimum wage and might face increased labor costs.
• SBUX - Starbucks: Similar to McDonald's, Starbucks employs many minimum-wage workers and could experience higher wages for their employees.
• DPZ - Domino's Pizza: Being in the food service industry, Domino's could also be significantly impacted by adjustments to minimum wage rates for their workforce.
• YUM - Yum Brands (operates Taco Bell, KFC, Pizza Hut, etc.): These brands could see wage increases impacting their operational expenses.