Summary

Raises the federal minimum wage in steps over a multi-year schedule, then requires annual indexing to changes in the median hourly wage; it also phases out and replaces existing subminimum pay rules for tipped workers, certain young workers, and workers paid under special disability certificates on specific transition schedules. The bill adds a 60‑day public notice requirement for wage increases and delays enactment until the first day of the third month after the law is signed. Employers must follow staged cash‑wage schedules for tipped employees and a separate temporary lower schedule for newly hired workers under 20 (starting at $6.00 in year one and increasing up to $1.75/year until parity). The Department of Labor must set and publish annual indexed wage levels after the initial multi‑year phase, stop issuing new disability subminimum certificates, and provide transition assistance before existing special‑wage certificates expire.

Key Points

• Phases in a higher federal minimum wage over several years, then indexes future increases to changes in the national median hourly wage using BLS data.
• Establishes a multi‑year cash‑wage schedule for tipped workers, requires employers to notify employees that they keep tips, and ends the tipped subminimum once parity is reached.
• Creates a temporary lower minimum wage for newly hired workers under 20 that starts at $6.00/hour and rises by up to $1.75 per year until it equals the standard minimum, then sunsets.
• Phases out special subminimum certificates for workers with disabilities, stops issuance of new certificates, provides transition assistance, and sets an expiration tied to the final wage step.
• Requires the Department of Labor to publish any required wage increase in the Federal Register and on the DOL website at least 60 days before it takes effect.
• Effective date is the first day of the third month after enactment unless another provision sets a different date.
• Makes limited edits to FLSA enforcement language related to tipped wages and certificate rules but keeps the general FLSA enforcement framework.
• Shifts long‑term wage-setting from fixed statutory steps to a data‑driven annual indexing mechanism after the initial phase.

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