The bill significantly raises wages and strengthens pay protections for low-wage, tipped, young, and disabled workers while providing predictability, but it also raises labor and compliance costs that may reduce hiring or hours at some employers and lead to higher consumer prices.
Low- and middle-income workers will see their base federal minimum wage rise to $17.00 over five years, increasing take-home pay for millions of workers.
Employees in tipped occupations will receive a guaranteed cash wage that phases up to $17/hour and will be explicitly entitled to retain their tips, boosting earnings security for service workers.
Young and entry-level workers under 20 will get a predictable, phased minimum (starting at $6 in year one) with scheduled increases, raising pay for many teens and young adults while giving employers time to plan.
Small businesses and service employers will face substantially higher labor costs, which could lead them to reduce hiring, cut hours, or raise prices for consumers.
Raising wage floors for younger workers may prompt some employers to substitute older or more experienced workers for teens and young adults, reducing entry-level job opportunities.
Phasing out special certificates and raising wages for workers with disabilities could cause some employers to reduce or end supported-employment programs, risking job losses for those workers and limiting creation of new supported opportunities.
Based on analysis of 7 sections of legislative text.
Phases the federal minimum wage to $17 by year six, phases up and then ends separate subminimums for tipped, youth, and special-certificate workers, and indexes thereafter.
Introduced April 8, 2025 by Robert C. Scott · Last progress April 8, 2025
Raises the federal minimum wage in stages to $17.00 per hour over six years, then requires annual increases tied to the Bureau of Labor Statistics’ median hourly wage growth. It also phases up and ultimately eliminates separate lower subminimum wages for tipped workers, newly hired workers under 20, and workers employed under special certificates (commonly used for some workers with disabilities), while requiring the Department of Labor to publish advance notices and provide transition assistance.