Sponsors
The bill would substantially raise and index the federal minimum (and raise pay for tipped workers, youth, and many workers with disabilities), delivering meaningful income gains and predictability for low‑wage workers but imposing higher labor costs and compliance burdens on employers, with risks of higher consumer prices, reduced hiring or program closures for some vulnerable groups.
Low‑wage workers (including many adults currently earning the federal minimum) will see their hourly pay rise to $20.00 over three years and then increase annually with CPI‑U or GDP, boosting incomes and long‑term purchasing power.
People with disabilities employed under 14(c) will receive phased annual wage increases reaching the full federal minimum within six years, plus DOL technical assistance and referrals to integrated employment resources to support transitions.
Tipped workers will get a guaranteed hourly base pay that phases up to $20.00 over seven years and new requirements to inform employees they keep their tips, increasing earnings stability and clarifying tip rights.
Small businesses (especially restaurants and service employers) will face substantially higher labor costs that could lead to reduced hiring, cut hours or benefits, layoffs, price increases for customers, or increased automation.
Removing the 14(c) pathway and phasing out certificate use creates risk that some employers will close or reduce programs that provided subsidized or sheltered employment, and families/employers may lose flexible employment options relied upon today.
Businesses may pass higher labor costs to consumers or contribute to upward price pressure and inflation if increased wages are reflected in higher prices for goods and services.
Based on analysis of 7 sections of legislative text.
Phases the federal minimum wage to $20/hr, phases up tipped and youth wages, phases out most 14(c) subminimums, and ties future increases to CPI-U or GDP.
Raises the federal minimum wage in stages to reach $20.00 per hour and creates an annual automatic adjustment tied to inflation or GDP growth. It also phases up and then eliminates separate subminimum wages: moving the tipped-worker cash wage to parity with the regular minimum, phasing up a youth (under-20) training wage to parity, and phasing out the 14(c) special certificates that allow lower wages for some workers with disabilities. The Department of Labor must publish notices of upcoming increases and provide transition assistance where required.
Introduced February 10, 2026 by Donald Norcross · Last progress February 10, 2026