Raise the Wage Act of 2021
Bill: S.53 | Sponsor: Sen. Sanders, Bernard (I-VT)
Policy area: Labor and Employment

Summary:
Raise the Wage Act of 2021
This bill increases the federal minimum wage for regular employees over a 5-year period, for tipped employees, and for newly hired employees who are less than 20 years old.
The bill sets forth a schedule of annual increases in the federal minimum wage for individuals with disabilities. The Department of Labor shall no longer issue special certificates for the payment of subminimum wages to such individuals after the final wage increase under this bill for such individuals takes effect.
Labor shall provide, upon request, technical assistance and information to employers to (1) help them transition their practices to comply with wage increases and other requirements under this bill for individuals with disabilities, and (2) ensure continuing employment opportunities for such individuals.
The bill eliminates the separate minimum wage requirements for tipped, newly hired, and disabled employees. After a specified period, these employees shall be paid the same minimum wage as regular employees.
Labor must publish any increase in the minimum wage in the Federal Register and on its website 60 days before it takes effect.

To provide for increases in the Federal minimum wage, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Raise the Wage Act of 2021''.

SEC. 2. MINIMUM WAGE INCREASES.

    (a) In General.--Section 6(a)(1) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 206(a)(1)) is amended to read as follows:
            ``(1) except as otherwise provided in this section, not 
        less than--
                    ``(A) $9.50 an hour, beginning on the effective 
                date under section 7 of the Raise the Wage Act of 2021;
                    ``(B) $11.00 an hour, beginning 1 year after such 
                effective date;
                    ``(C) $12.50 an hour, beginning 2 years after such 
                effective date;
                    ``(D) $14.00 an hour, beginning 3 years after such 
                effective date;
                    ``(E) $15.00 an hour, beginning 4 years after such 
                effective date; and
                    ``(F) beginning on the date that is 5 years after 
                such effective date, and annually thereafter, the 
                amount determined by the Secretary under subsection 
                (h);''.
    (b) 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) is amended by adding at the end the following:
    ``(h)(1) Not later than each 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 under 
this subsection for each period described in subsection (a)(1)(F). The 
wage determined under 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, if any, in the median hourly wage of all employees as 
        determined by the Bureau of Labor Statistics; and
            ``(C) rounded up 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.''.

SEC. 3. TIPPED EMPLOYEES.

    (a) Base Minimum Wage for Tipped Employees and Tips Retained by 
Employees.--Section 3(m)(2)(A)(i) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 203(m)(2)(A)(i)) is amended to read as follows:
            ``(i) the cash wage paid such employee, which for purposes 
        of such determination shall be not less than--
                    ``(I) for the 1-year period beginning on the 
                effective date under section 7 of the Raise the Wage 
                Act of 2021, $4.95 an hour;
                    ``(II) for each succeeding 1-year period until the 
                hourly wage under this clause equals the wage in effect 
                under section 6(a)(1) for such period, an hourly wage 
                equal to the amount determined under this clause for 
                the preceding year, increased by the lesser of--
                            ``(aa) $2.00; or
                            ``(bb) the amount necessary for the wage in 
                        effect under this clause to equal the wage in 
                        effect under section 6(a)(1) for such period, 
                        rounded up to the nearest multiple of $0.05; 
                        and
                    ``(III) for each succeeding 1-year period after the 
                increase made pursuant to subclause (II), the minimum 
                wage in effect under section 6(a)(1); and''.
    (b) Tips Retained by Employees.--Section 3(m)(2)(A) of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)) is amended--
            (1) in the second sentence of the matter following clause 
        (ii), by striking ``of this subsection, and all tips received 
        by such employee have been retained by the employee'' and 
        inserting ``of this subsection. Any employee shall have the 
        right to retain any tips received by such employee''; and
            (2) by adding at the end the following: ``An employer shall 
        inform each employee of the right and exception provided under 
        the preceding sentence.''.
    (c) Scheduled Repeal of Separate Minimum Wage for Tipped 
Employees.--
            (1) Tipped employees.--Section 3(m)(2)(A) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)), as amended by 
        subsections (a) and (b), is further amended by striking the 
        sentence beginning with ``In determining the wage an employer 
        is required to pay a tipped employee,'' and all that follows 
        through ``of this subsection.'' and inserting ``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.--Subsection (i) of section 6 of 
        the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as 
        amended by section 5, is further amended by striking ``or in 
        accordance with subclause (II) or (III) of section 
        3(m)(2)(A)(i)''.
            (3) Effective date.--The amendments made by paragraphs (1) 
        and (2) shall take effect on the date that is 1 day after the 
        date on which the hourly wage under subclause (III) of section 
        3(m)(2)(A)(i) of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 203(m)(2)(A)(i)), as amended by subsection (a), takes 
        effect.
    (d) Penalties.--Section 16 of the Fair Labor Standards Act of 1938 
(29 U.S.C. 216) is amended--
            (1) in the third sentence of subsection (b), by inserting 
        ``or used'' after ``kept''; and
            (2) in the second sentence of subsection (e)(2), by 
        inserting ``or used'' after ``kept''.

SEC. 4. NEWLY HIRED EMPLOYEES WHO ARE LESS THAN 20 YEARS OLD.

    (a) Base Minimum Wage for Newly Hired Employees Who Are Less Than 
20 Years Old.--Section 6(g)(1) of the Fair Labor Standards Act of 1938 
(29 U.S.C. 206(g)(1)) is amended by striking ``a wage which is not less 
than $4.25 an hour.'' and inserting the following: ``a wage at a rate 
that is not less than--
            ``(A) for the 1-year period beginning on the effective date 
        under section 7 of the Raise the Wage Act of 2021, $6.00 an 
        hour;
            ``(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) $1.75; 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 up to the 
                nearest multiple of $0.05; and
            ``(C) for each succeeding 1-year period after the increase 
        made pursuant to subparagraph (B)(ii), the minimum wage in 
        effect under section 6(a)(1).''.
    (b) Scheduled Repeal of Separate Minimum Wage for Newly Hired 
Employees Who Are Less Than 20 Years Old.--
            (1) In general.--Section 6(g) of the Fair Labor Standards 
        Act of 1938 (29 U.S.C. 206(g)), as amended by subsection (a), 
        shall be repealed.
            (2) Publication of notice.--Subsection (i) of section 6 of 
        the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as 
        amended by section 3(c)(2), is further amended by striking ``or 
        subparagraph (B) or (C) of subsection (g)(1),''.
            (3) Effective date.--The repeal and amendment made by 
        paragraphs (1) and (2), respectively, shall take effect on the 
        date that is 1 day after the date on which the hourly wage 
        under subparagraph (C) of section 6(g)(1) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 206(g)(1)), as amended by 
        subsection (a), takes effect.

SEC. 5. PUBLICATION OF NOTICE.

    Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), 
as amended by the preceding sections, is further amended by adding at 
the end the following:
    ``(i) Not later than 60 days prior to the effective date of any 
increase in the required wage determined under subsection (a)(1) or 
subparagraph (B) or (C) of subsection (g)(1), or in accordance with 
subclause (II) or (III) of section 3(m)(2)(A)(i) or section 
14(c)(1)(A), the Secretary shall publish in the Federal Register and on 
the website of the Department of Labor a notice announcing each 
increase in such required wage.''.

SEC. 6. PROMOTING ECONOMIC SELF-SUFFICIENCY FOR INDIVIDUALS WITH 
              DISABILITIES.

    (a) Wages.--
            (1) Transition to fair wages for individuals with 
        disabilities.--Subparagraph (A) of section 14(c)(1) of the Fair 
        Labor Standards Act of 1938 (29 U.S.C. 214(c)(1)) is amended to 
        read as follows:
            ``(A) at a rate that equals or exceeds, for each year, the 
        greater of--
                    ``(i)(I) $5.00 an hour, beginning on the effective 
                date under section 7 of the Raise the Wage Act of 2021;
                    ``(II) $7.50 an hour, beginning 1 year after such 
                effective date;
                    ``(III) $10.00 an hour, beginning 2 years after 
                such effective date;
                    ``(IV) $12.50 an hour, beginning 3 years after such 
                effective date;
                    ``(V) $15.00 an hour, beginning 4 years after such 
                effective date; and
                    ``(VI) the wage rate in effect under section 
                6(a)(1), beginning 5 years after such effective date; 
                or
                    ``(ii) if applicable, the wage rate in effect on 
                the day before the date of enactment of the Raise the 
                Wage Act of 2021 for the employment, under a special 
                certificate issued under this paragraph, of the 
                individual for whom the wage rate is being determined 
                under this subparagraph,''.
            (2) Prohibition on new special certificates; sunset.--
        Section 14(c) of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 214(c)) (as amended by paragraph (1)) is further amended 
        by adding at the end the following:
            ``(6) Prohibition on new special certificates.--
        Notwithstanding paragraph (1), the Secretary shall not issue a 
        special certificate under this subsection to an employer that 
        was not issued a special certificate under this subsection 
        before the date of enactment of the Raise the Wage Act of 2021.
            ``(7) Sunset.--Beginning on the day after the date on which 
        the wage rate described in paragraph (1)(A)(i)(VI) takes 
        effect, the authority to issue special certificates under 
        paragraph (1) shall expire, and no special certificates issued 
        under paragraph (1) shall have any legal effect.
            ``(8) Transition assistance.--Upon request, the Secretary 
        shall provide--
                    ``(A) technical assistance and information to 
                employers issued a special certificate under this 
                subsection for the purposes of--
                            ``(i) assisting such employers to comply 
                        with this subsection, as amended by the Raise 
                        the Wage Act of 2021; and
                            ``(ii) ensuring continuing employment 
                        opportunities for individuals with disabilities 
                        receiving a special minimum wage rate under 
                        this subsection; and
                    ``(B) information to individuals employed at a 
                special minimum wage rate under this subsection, which 
                may include referrals to Federal or State entities with 
                expertise in competitive integrated employment.''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date of enactment of this Act.
    (b) Publication of Notice.--
            (1) Amendment.--Subsection (i) of section 6 of the Fair 
        Labor Standards Act of 1938 (29 U.S.C. 206), as amended by 
        section 4(b)(2), is further amended by striking ``or section 
        14(c)(1)(A),''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the day after the date on which the wage 
        rate described in paragraph (1)(A)(i)(VI) of section 14(c) of 
        the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)), as 
        amended by subsection (a)(1), takes effect.

SEC. 7. GENERAL EFFECTIVE DATE.

    Except as otherwise provided in this Act, or the amendments made by 
this Act, this Act and the amendments made by this Act shall take 
effect on the first day of the third month that begins after the date 
of the enactment of this Act.
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