Give America a Raise Act
Sponsored By: Senator Sen. Gallego, Ruben [D-AZ]
Introduced
Summary
A multi-year federal minimum wage schedule would set staged wage floors and link future raises to inflation and GDP. The bill would also end the separate tipped-wage system and create a time-limited wage transition for workers with disabilities.
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- Workers and young hires: Would phase the general minimum wage up over several years and establish an automatic annual adjustment tied to inflation and GDP. It would replace the current lower short-term wage for newly hired workers under 20 with a staged progression toward the general wage.
- Tipped workers and tips rules: Would restructure the tipped-employee regime toward a single unified wage. The bill would expand workers’ rights to retain tips, require employer notices about tips and wage rules, and update penalties for unlawfully kept tips.
- Disability employment and administration: Would create a disability-focused wage transition ladder with phased increases and require transition assistance for employers and affected employees. It would bar new special-certificates under the old disability program once the transition reaches a specified wage and require the Secretary of Labor to publish advance notices of wage increases. The act would take effect on the first day of the third month after enactment.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 0 costs, 1 mixed.
Higher federal minimum wage schedule
If enacted, the federal minimum wage would rise in steps: $10.00 on the Act’s effective date, $13.00 after 1 year, $16.50 after 2 years, and $20.00 after 3 years. Beginning 4 years after the Act’s effective date and each year after, the Department of Labor Secretary would set the yearly minimum using the larger of CPI-U or GDP growth, round up to the nearest $0.05, and publish the amount at least 90 days before it starts. The Department of Labor would also publish each required wage increase at least 60 days before it takes effect. Unless a provision says otherwise, most of the Act would take effect on the first day of the third month after enactment.
Higher pay for newly hired under-20s
If enacted, the separate $4.25 subminimum for newly hired workers under age 20 would be replaced. The under-20 wage would start at $6.00 on the Act’s effective date and would increase each year by up to $2.00 until it equals the general minimum wage. One day after the under-20 wage reaches parity with the general minimum, the separate under-20 provision would be repealed.
Higher wages and rights for tipped workers
If enacted, tipped workers would get a rising cash-wage floor: $6.00 in year 1, $8.00 in year 2, $10.00 in year 3, $12.50 in year 4, $15.00 in year 5, $17.50 in year 6, and $20.00 in year 7. After that, the cash floor would match the general minimum wage. Employers would have to tell each employee they have the right to keep their tips and any exception. The bill would also broaden enforcement language so tips "unlawfully kept or used" are covered. One day after the tipped cash-wage transition reaches its parity step, employers would no longer use the old tipped-wage calculation and tipped employees would be paid the general minimum wage.
Wage transition for workers with disabilities
If enacted, workers paid under section 14(c) special certificates would move to a transition schedule: the higher of each year’s schedule or the individual’s pre-enactment rate. The schedule would start at $5.00 on the Act’s effective date and rise to $8.00, $11.00, $14.00, $17.00, and $20.00 in successive years, with full parity to the general minimum beginning in year seven. The bill would prohibit the Department of Labor from issuing new 14(c) certificates to employers that did not have one before enactment, and the authority for certificates would end the day after the 14(c) transition reaches parity. The Department of Labor would, on request and starting on the date of enactment, provide technical assistance to employers and information or referrals to affected workers. The bill would remove 14(c) from a 60-day public-notice list once parity is reached.
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Sponsors & CoSponsors
Sponsor
Sen. Gallego, Ruben [D-AZ]
AZ • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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