Fair Minimum Wage Act of 2013

To provide for an increase in the Federal minimum wage. 1. Short title This Act may be cited as the Fair Minimum Wage Act of 2013 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) $8.50 an hour, beginning on the first day of the third month that begins after the date of enactment of the Fair Minimum Wage Act of 2013 Act; (B) $10.00 an hour, beginning 1 year after that first day; (C) $11.00 an hour, beginning 2 years after that first day; and (D) beginning on the date that is 3 years after that first day, and annually thereafter, the amount determined by the Secretary pursuant to subsection (h); . (2) Determination based on increase in the consumer price index 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)(D) is to take effect, the Secretary shall determine the minimum wage to be in effect pursuant to this subsection for the subsequent 1-year period. 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 Consumer Price Index for Urban Wage Earners and Clerical Workers (United States city average, all items, not seasonally adjusted), or its successor publication, 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 Consumer Price Index for purposes of paragraph (1)(B), the Secretary shall compare such Consumer Price Index for the most recent month, quarter, or year available (as selected by the Secretary prior to the first year for which a minimum wage is in effect pursuant to this subsection) with the Consumer Price Index for the same month in the preceding year, the same quarter in the preceding year, or the preceding year, respectively. . (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 the first day of the third month that begins after the date of enactment of the Fair Minimum Wage Act of 2013, $3.00 an hour; (B) for each succeeding 1-year period until the hourly wage under this paragraph equals 70 percent of 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) $0.95; or (ii) the amount necessary for the wage in effect under this paragraph to equal 70 percent of 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 70 percent of 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 70 percent of the wage in effect under section 6(a)(1), rounded to the nearest multiple of $0.05; and . (c) Publication of notice Section 6 of the Fair Labor Standards Act of 1938 (as amended by subsection (a)) ( 29 U.S.C. 206 (i) Not later than 60 days prior to the effective date of any increase in the minimum wage determined under subsection (h) or required for tipped employees in accordance with subparagraph (B) or (C) of section 3(m)(1), as amended by the Fair Minimum Wage Act of 2013, the Secretary shall publish in the Federal Register and on the website of the Department of Labor a notice announcing the adjusted required wage. . (d) Effective date The amendments made by subsections (a) and (b) shall take effect on the first day of the third month that begins after the date of enactment of this Act.

Summary: Fair Minimum Wage Act of 2013 - Amends the Fair Labor Standards Act of 1938 (FLSA) to increase the federal minimum wage for employees to: (1) $8.50 an hour on the first day of the third month after enactment of this Act; (2) $10.00 an hour after one year; (3) $11.00 an hour after two years; and (4) the amount determined by the Secretary of Labor (based on increases in the Consumer Price Index) after three years, and annually thereafter. Increases the federal minimum wage for tipped employees to $3.00 an hour for one year on the first day of the third month after enactment of this Act. Provides a formula for subsequent annual adjustments of the wage increase to ensure that it remains equal to 70% of the wage in effect under FLSA for other employees. Directs the Secretary, 60 days before any increase in the minimum wage, to publish it in the Federal Register and on the Department of Labor's website.