Sponsors (35)
The bill substantially raises and indexes federal minimum wages—extending higher guaranteed wages and tip protections to many low-wage groups—boosting earnings for workers but raising costs for businesses, consumers, and government enforcement/transition systems, with a trade-off between higher household incomes and potential employment, price, and administrative impacts.
Low-wage workers (including many minimum-wage earners) will see a substantial, phased federal minimum-wage increase to $17 and thereafter annual adjustments tied to median wage growth, raising take-home pay and reducing poverty risk.
Tipped workers will receive a much higher guaranteed cash wage (phasing to $17/hr), increasing their predictable earnings and reducing reliance on tips alone.
All employees are explicitly protected from employer appropriation of tips and employers must notify workers about tip-retention rights and exceptions, improving worker protections and transparency.
Small businesses face materially higher labor costs across multiple categories (general minimum, tipped, youth, disability wages), which could force reduced hiring, cuts to hours, price increases, or business closures.
Consumers and taxpayers may see higher prices for goods and services as employers pass increased wage costs onto customers.
Some employers may respond to higher wages by cutting hours, reducing staff, shifting to automation, or reducing tipping opportunities, which can lower total earnings or employment for affected workers.
Based on analysis of 7 sections of legislative text.
Introduced April 8, 2025 by Bernard Sanders · Last progress April 8, 2025
Raises the federal minimum wage on a multi-year schedule to reach $17.00/hour and then ties future increases to changes in the median hourly wage. It phases up cash wages for tipped workers to the full minimum, phases out the youth subminimum wage for new workers under 20, and eliminates most subminimum wages for workers with disabilities by establishing a five-year floor and sunsetting special‑certificate authority. The Department of Labor must publish advance notice of required increases and provide transition assistance related to disability certificates.