Sponsor
Donald Norcross
Representative · D-NJ
Representative · D-NJ
The bill substantially raises and indexes the federal minimum wage and phases out subminimum pay (bringing significant income gains and stronger rights for many low‑wage and vulnerable workers) at the likely cost of higher prices, increased burdens and risk for small employers, and potential reductions in some entry‑level or specialty jobs.
Millions of low‑wage workers (including many adults in retail, services, and other industries) will see their federal minimum wage rise on a multi‑year schedule to $20/hour, increasing take‑home pay and materially boosting incomes for low‑ and middle‑income households.
All future minimum‑wage adjustments will be indexed to the larger of CPI‑U or GDP growth, helping wages keep pace with inflation or economic growth and protecting purchasing power over time.
Tipped workers (servers, bartenders) gain progressively higher guaranteed cash wages that phase up to at least $20/hour and a clear statutory right to retain all tips, with stronger enforcement language to deter tip theft.
Consumers (including low‑ and middle‑income households) are likely to face higher prices as businesses pass increased labor costs through to goods and services.
Small businesses across affected sectors may face tighter margins, reduced hiring, hours cuts, layoffs, or even closures due to rising payroll costs.
Entry‑level and inexperienced workers (including teens and young adults) may see fewer job opportunities as employers automate, raise experience requirements, or cut traditional starter positions in response to higher mandated wages.
Based on analysis of 7 sections of legislative text.
Phases the federal minimum wage up to $20, then ties annual automatic increases to CPI‑U or GDP; phases out the tipped, youth, and section 14(c) subminimum wages and requires DOL publication and notice.
Official title: To provide for increases in the Federal minimum wage, and for other purposes.
Introduced February 10, 2026 by Donald Norcross · Last progress February 10, 2026
Raises the federal hourly minimum wage in phased steps over four years to reach $20.00 and then requires annual automatic increases tied to CPI‑U or GDP growth. Phases up and ultimately ends the subminimum cash wage for tipped workers, the youth subminimum for workers under 20, and the special certificate wage authority for workers with disabilities under section 14(c), with transitional schedules and employer notice requirements. Also requires the Department of Labor to publish 60‑day advance notices of scheduled wage increases, limits issuance of new 14(c) certificates, and directs DOL to provide technical assistance and employee referrals related to the 14(c) phase‑out. The Act’s provisions take effect generally on the first day of the third month after enactment, with several provisions triggering repeals one day after certain phased wages reach parity with the regular minimum wage.