This bill raises the federal minimum wage in steps to $17 an hour over five years, then adjusts it every year based on the national median hourly wage. The steps are $9.50, $11.00, $12.50, $14.00, $15.50, and $17.00, with yearly updates after that. The Labor Department will set these yearly updates and must announce any increase at least 60 days in advance.

It also changes pay rules for certain workers. Tipped workers’ base pay rises from $6.00 up to $17.00 over six years; after that, they must be paid the full minimum wage, and they get to keep their tips, with employers required to tell them about this right. Newly hired workers under age 20 start at $6.00 and go up by as much as $1.75 per year until they match the regular minimum; once it’s equal, the separate youth rate ends. Workers with disabilities now paid under special certificates move up over five years—from $5.00 at first to the full minimum wage—no new certificates can be issued, and the program sunsets once the full rate is in place. Most changes begin on the first day of the third month after the bill becomes law.

Key points:

• Who is affected: workers paid the federal minimum wage, tipped workers, newly hired workers under 20, and workers with disabilities currently under special certificates.
• What changes: step increases to $17; annual updates tied to the median wage; tipped workers receive the full minimum and keep their tips; youth and disability subminimums phase out.
• When: raises begin after the law takes effect; the agency must give 60 days’ notice before each increase.