Raise the Wage Act of 2025

Summary

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.

• Raises the federal minimum wage in stages to $17.00/hour by year six, then indexes it annually to median hourly wage growth.
• Phases up the tipped-employee cash wage from $6.00 to $17.00 over six years and eliminates the separate tipped subminimum once parity is reached.
• Phases and then repeals the separate newly-hired subminimum for employees under 20 once it equals the general minimum.
• Phases wages for workers paid under special certificates (14(c)) from $5.00 to the general minimum over five years and prohibits new certificates for employers who didn't previously hold one.
• Requires the Department of Labor to publish advance notices (60–90 days) of upcoming wage increases and to offer transition assistance for affected employers/workers.
• Does not appropriate new funds; enforcement remains under existing FLSA penalty and compliance mechanisms.
• Employers, especially in low-wage sectors like food service, will face higher labor costs and new compliance obligations.
• Once targeted subminimums reach parity, the law consolidates wage rules so all covered workers are paid the same federal minimum.