Pay Workers a Living Wage Act

To provide for increases in the Federal minimum wage. 1. Short title This Act may be cited as the Pay Workers a Living Wage Act 2. Minimum wage increases (a) Minimum wage (1) In general Section 6(a)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206(a)(1) (1) except as otherwise provided in this section, not less than— (A) $9.00 an hour, beginning on January 1, 2016, or the first day of the third month that begins after the date of enactment of the Pay Workers a Living Wage Act (B) $10.50 an hour, beginning 1 year after the date the wage specified in subparagraph (A) takes effect; (C) $12.00 an hour, beginning 2 years after such date; (D) $13.50 an hour, beginning 3 years after such date; (E) $15.00 an hour, beginning 4 years after such date; and (F) beginning on the date that is 5 years after such date, and annually thereafter, the amount determined by the Secretary pursuant to subsection (h); . (2) Determination based on increase in the median hourly wage of all employees Section 6 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206 (h) (1) Each year, by not later than the date that is 90 days before a new minimum wage determined under subsection (a)(1)(F) is to take effect, the Secretary shall determine the minimum wage to be in effect pursuant to this subsection for each period described in subsection (a)(1)(F). The wage determined pursuant to this subsection for a year shall be— (A) not less than the amount in effect under subsection (a)(1) on the date of such determination; (B) increased from such amount by the annual percentage increase in the median hourly wage of all employees, as determined by the Bureau of Labor Statistics; and (C) rounded to the nearest multiple of $0.05. (2) In calculating the annual percentage increase in the median hourly wage of all employees for purposes of paragraph (1)(B), the Secretary through the Bureau of Labor Statistics shall compile data on the hourly wages of all employees to determine such a median hourly wage and compare such median hourly wage for the most recent year for which data are available with the median hourly wage determined for the preceding year. . (b) Base minimum wage for tipped employees Section 3(m)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203(m)(1) (1) the cash wage paid such employee, which for purposes of such determination shall be not less than— (A) for the 1-year period beginning on January 1, 2016, or the first day of the third month that begins after the date of enactment of the Pay Workers a Living Wage Act (B) for each succeeding 1-year period until the hourly wage under this paragraph equals the wage in effect under section 6(a)(1) for such period, an hourly wage equal to the amount determined under this paragraph for the preceding year, increased by the lesser of— (i) $1.50; or (ii) the amount necessary for the wage in effect under this paragraph to equal the wage in effect under section 6(a)(1) for such period, rounded to the nearest multiple of $0.05; and (C) for each succeeding 1-year period after the year in which the hourly wage under this paragraph first equals the wage in effect under section 6(a)(1) for the same period, the amount necessary to ensure that the wage in effect under this paragraph remains equal to the wage in effect under section 6(a)(1), rounded to the nearest multiple of $0.05; and . (c) Tips retained by employees Section 3(m) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203(m) (1) in the second sentence of the matter following paragraph (2), by striking of this subsection, and all tips received by such employee have been retained by the employee of this subsection. Any employee shall have the right to retain any tips received by such employee (2) by adding at the end the following: An employer shall inform each employee of the right and exception provided under the preceding sentence. (d) Scheduled repeal of separate minimum wage for tipped employees (1) Tipped employees Effective on the date described in paragraph (3), section 3(m) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203(m) In determining the wage an employer is required to pay a tipped employee, of this subsection. The wage required to be paid to a tipped employee shall be the wage set forth in section 6(a)(1). (2) Publication of notice Effective on the date described in paragraph (3), section 6(i)(2) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206(i)(2) (A) in subparagraph (A), by inserting or (B) by striking subparagraph (B); and (C) by redesignating subparagraph (C) as subparagraph (B). (3) Effective date The amendments made by paragraphs (1) and (2) shall take effect on the date that is one day after the date on which the hourly wage under section 3(m)(1)(C) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203(m)(1)(C) (e) Youth minimum wage Section (6)(g)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206(g)(1) a wage which is not less than $4.25 an hour a wage at a rate that is not less than the rate prescribed by subsection (a)(1), reduced by $3.00 per hour (f) Publication of notice Section 6 of the Fair Labor Standards Act of 1938 (as amended by subsections (a) and (e)) ( 29 U.S.C. 206 (i) (1) Not later than 60 days prior to the effective date of any adjusted required wage, the Secretary shall publish in the Federal Register and on the website of the Department of Labor a notice announcing the amount of the adjusted required wage. (2) In this subsection, the term adjusted required wage (A) determined under subsection (h); (B) required for tipped employees in accordance with subparagraph (B) or (C) of section 3(m)(1) (as applicable); or (C) required for employees who have not attained the age of 20 years in accordance with subsection (g). . (g) Effective date The amendments made by subsections (a), (b), and (f) shall take effect on January 1, 2016, or the first day of the third month that begins after the date of enactment of this Act, whichever date is later.

Summary: Pay Workers a Living Wage Act This bill amends the Fair Labor Standards Act of 1938 (FLSA) to increase the federal minimum wage for employees to: (1) $9.00 an hour on January 1, 2016, or, if later, on the first day of the third month after enactment of this Act; (2) $10.50 an hour after one year; (3) $12.00 an hour after two years; (4) $13.50 an hour after three years; (5) $15.00 an hour after four years; and (6) the amount the Secretary of Labor determines (based on increases in the median hourly wage of all employees) after five years, and annually thereafter. The federal minimum wage for tipped employees shall increase to $3.15 an hour for one year on January 1, 2016, or the first day of the third month after enactment of this Act, whichever is later. Subsequent annual adjustments of the wage increase, according to a specified formula, shall ensure that it remains equal to the wage in effect under FLSA for other employees. Employers must notify their employees of the right to retain any received tips. The separate minimum wage requirements for tipped employees shall end, effective one day after the hourly wage established for them under this Act takes effect. Any employer may pay any newly hired employee who is less than 20 years old, during the first 90 consecutive days after that employee's initial employment, a wage at a rate that is not less than the rate prescribed for employees who are engaged in commerce, reduced by $3.00 per hour. The Secretary must publish the amount of any adjusted required wage in the Federal Register and on the Department of Labor's website 60 days before it takes effect.