Sponsors (173)
The bill raises wages and extends protections for low-wage, tipped, youth, and disabled workers—improving incomes and predictability—but does so at the risk of higher costs for businesses, potential job or hour reductions, higher consumer prices, and added administrative burdens.
Low-wage workers nationwide (especially non-tipped workers) will see their hourly pay rise to $17.00 by year 5, with scheduled increases thereafter.
Future minimum-wage increases are automatically indexed to median wage growth, helping protect the purchasing power of low-wage workers over time.
Tipped workers will get steadily higher guaranteed base pay that moves them toward parity with the regular minimum wage, raising incomes for many service employees.
Small businesses across affected industries will face significantly higher labor costs, which could force reduced hiring, cutbacks, closures, or higher prices to stay solvent.
Low-wage and tipped workers may see reduced hours, scheduling changes, or job losses as employers shift to automation or cut staff to control rising payroll costs.
Consumers—particularly low- and middle-income households—are likely to face higher prices for goods and services (e.g., restaurant meals) if businesses pass on increased labor costs.
Based on analysis of 7 sections of legislative text.
Phases federal minimum wage to $17 over five years, phases out tipped/youth/14(c) subminimum wages, and indexes future increases to median wage growth.
Official title: To provide for increases in the Federal minimum wage, and for other purposes.
Introduced April 8, 2025 by Robert C. Scott · Last progress April 8, 2025
Raises the federal hourly minimum wage in steps over several years, phases out special subminimum wages (for tipped workers, youth hires, and employees under 14(c) certificates) by gradually increasing those rates until they equal the standard minimum, and requires the Department of Labor to publish notices of upcoming increases. After an initial multi-year schedule, the Secretary of Labor will index future annual increases to median hourly wage growth using BLS data. The bill phases in new cash minimums for tipped employees and youth hires, limits new 14(c) special certificates for workers with disabilities, provides transition assistance, and sunsets separate subminimum-wage regimes once they reach parity with the regular minimum wage. The act takes effect on the first day of the third month after enactment unless stated otherwise.