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119-hr-3662119th CongressWALLET

Labor Income Fairness and Transparency Act

Sponsored By: Representative Titus, Dina [D-NV-1]

Introduced

Summary

Would raise the federal minimum wage and then tie future increases to the national median wage. The bill sets a four-step schedule that reaches $17.00 per hour within two years and then adjusts annually based on median wages.

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  • Low-wage workers would see stepped increases that reach $17.00 per hour within two years and then rise each year with the national median wage.
  • Tipped workers would get a recalibrated base tipped wage on the same timeline, keep tip retention and pooling protections, and employers must provide daily notice of tips.
  • Youth, student-learners, full-time students, and workers under special certificates would face higher phased minimums and reduced subminimum exceptions that align with the main schedule.
  • Low- and moderate-income families would get expanded, permanent Earned Income Tax Credit changes, including a higher credit rate of 15.3% and updated age and income rules starting for tax years after 2025.
  • Enforcement would strengthen with higher civil penalties for wage violations (from $1,100 to $2,200), grants to state, local, and Tribal governments, and a National Advisory Committee on the hospitality industry.

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 7 benefits, 1 costs, 1 mixed.

Higher federal minimum wage with indexing

This bill would raise the federal minimum wage on a set schedule. One year after enactment it would be $10.25 per hour. Twelve months later it would be $13.75, and 24 months later it would be $17.00. Starting 36 months after the initial effective date, the wage would adjust each year by the change in the median hourly wage; it could not go down and would be rounded up to the nearest $0.05. This would apply to workers covered by the federal Fair Labor Standards Act.

Higher pay for tipped, student, and youth

This bill would raise several subminimum pay rates on the same timeline as the general minimum wage. On the initial effective date, some floors would be $9.77 and the student-learner floor would be $9.29. The employer-paid base for tipped workers would be $7.09. The youth first-90-days rate would be $8.50 and only for the first 90 days with the same employer. After 12 months those amounts would rise to $13.38, $13.14, $12.05, and $12.75; after 24 months they would be $17.00; after 36 months they would match the full minimum wage.

Bigger Earned Income Tax Credit

For tax years beginning after December 31, 2025, this bill would expand the Earned Income Tax Credit. The credit rate would increase from 7.65% to 15.3%. Some earned-income and phaseout amounts would rise (for example, $4,220 to $9,820 and $5,280 to $11,610). Minimum age rules would change to generally 19, 24 for most students, and 18 for qualified former foster or homeless youth.

Stronger protections for tipped workers

This bill would confirm that tipped workers keep the tips they receive. Tip pools would be allowed only among workers who regularly get tips. Employers would have to give each tipped worker a daily notice of that worker's tips. Employers, managers, and supervisors could not keep any part of employees' tips or recoup processing costs. These changes would start one year after enactment.

Higher fines for wage violations

This bill would double civil penalties for certain wage violations from $1,100 to $2,200 per violation. The higher fines would start 120 days after enactment. Employers that break wage rules would face higher costs.

No new subminimum wage certificates

This bill would stop the Labor Department from issuing new subminimum wage certificates under section 14(c). The ban would start 36 months after the bill's initial effective date. Existing certificates are not described as being revoked.

Grants to enforce local wage laws

This bill would let the Labor Department give grants to State, local, and Tribal governments to improve wage-law enforcement. Grants could fund investigations, training, and education. Governments would have to apply. The bill authorizes the program but does not set a dollar amount.

New hospitality industry advisory panel

This bill would create a 15-member advisory panel for the hospitality industry. The Secretary of Labor would appoint the members. The panel would meet at least twice a year and advise on wages, safety, training, contracting, and visa issues.

Protect federal wage investigators' jobs

This bill would bar removing Wage and Hour Division investigators in a reduction in force. It would protect those investigator jobs, regardless of other laws.

Sponsors & CoSponsors

Sponsor

Titus, Dina [D-NV-1]

NV • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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