HR2743119th CongressWALLET

Raise the Wage Act of 2025

Sponsored By: Representative Scott (VA)

Introduced

Summary

Would raise the federal minimum wage to $17.00 within five years and then index future increases to the median hourly wage. It would also phase out separate subminimum rates for tipped workers, new hires under 20, and many workers paid under special certificates for people with disabilities, and require advance notice of any wage increases.

Show full summary
  • Would raise the national FLSA minimum to $17.00 over five years and then require annual increases tied to the Bureau of Labor Statistics median hourly wage.
  • Would boost the cash wage for tipped employees from a low baseline up to $17.00 over seven years, fold tipped pay into the general minimum after that, preserve employees' right to keep tips, and require employer notice about tips.
  • Would set a separate wage for new hires under 20 starting at $6.00 and raise it each year until it equals the general minimum. It would also bar new special certificates for workers with disabilities and phase those workers' wages up to the general minimum by year five.

Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 0 costs, 1 mixed.

Higher federal minimum wage for workers

If enacted, the federal minimum wage would rise in steps: $9.50 at the effective date, then $11.00 after 1 year, $12.50 after 2 years, $14.00 after 3 years, $15.50 after 4 years, and $17.00 after 5 years. Starting 6 years after the effective date, it would increase each year with growth in the BLS median hourly wage, rounded up to $0.05. The Secretary of Labor would set the new rate at least 90 days before it takes effect.

End subminimum pay for workers with disabilities

If enacted, wages under special certificates would rise to at least $5.00 at the effective date, then $7.50 after 1 year, $10.00 after 2, $12.50 after 3, and $15.50 after 4. After 5 years, pay would equal the general minimum wage. New certificates could not be issued to employers without one before enactment, and the authority to issue them would end the day after parity. Existing certificates would then have no legal effect. The Labor Department would offer technical help and referrals on request.

Higher pay for workers under 20

If enacted, newly hired workers under 20 would get $6.00 per hour for one year starting at the effective date. Each year after, that rate would go up by as much as $1.75 until it matches the general minimum wage. Once it matches, the youth rate would equal the general minimum wage. The separate under‑20 rule would be repealed one day after parity.

Stronger pay rules for tipped workers

If enacted, the tipped cash wage would start at $6.00 per hour, then rise to $8.00 after 1 year, $10.00 after 2, $12.00 after 3, $13.50 after 4, $15.00 after 5, and $17.00 after 6. After that step, tipped workers would be paid the general minimum wage, and the separate tipped-wage setup would end one day later. Workers would have the right to keep their tips, and employers would have to inform them of that right and any exception. Penalties would also cover employers who keep or use employees’ tips.

When new wage rates would start

If enacted, most parts of the bill would take effect on the first day of the third month after enactment, unless a section sets a different date. The Labor Department would have to publish each wage increase at least 60 days before it starts, in the Federal Register and on its website. A reference tied to special‑certificate wages would be removed after that schedule reaches its trigger.

Sponsors & CoSponsors

Sponsor

Scott (VA)

VA • D

Cosponsors

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