Title: Raise the Wage Act
Policy area: Labor and Employment

Summary:
Raise the Wage Act
This bill amends the Fair Labor Standards Act of 1938 to increase the federal minimum wage for regular employees over a 7-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.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1242 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1242

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 25, 2017

  Mr. Sanders (for himself, Mrs. Murray, Mr. Schumer, Mr. Durbin, Ms. 
   Baldwin, Mr. Blumenthal, Mr. Booker, Mr. Brown, Ms. Cantwell, Ms. 
 Duckworth, Mrs. Gillibrand, Mrs. Feinstein, Mr. Franken, Ms. Harris, 
Ms. Hirono, Mr. Kaine, Mr. Leahy, Mr. Markey, Mr. Merkley, Mr. Nelson, 
  Mr. Peters, Mr. Reed, Mr. Schatz, Ms. Stabenow, Mr. Van Hollen, Ms. 
  Warren, Mr. Whitehouse, Mr. Wyden, Mr. Murphy, Mr. Cardin, and Ms. 
  Klobuchar) introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
  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''.

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) $9.25 an hour, beginning on the effective 
                date under section 7 of the Raise the Wage Act;
                    ``(B) $10.10 an hour, beginning 1 year after such 
                effective date;
                    ``(C) $11.00 an hour, beginning 2 years after such 
                effective date;
                    ``(D) $12.00 an hour, beginning 3 years after such 
                effective date;
                    ``(E) $13.00 an hour, beginning 4 years after such 
                effective date;
                    ``(F) $13.50 an hour, beginning 5 years after such 
                effective date;
                    ``(G) $14.25 an hour, beginning 6 years after such 
                effective date;
                    ``(H) $15.00 an hour, beginning 7 years after such 
                effective date; and
                    ``(I) beginning on the date that is 8 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)(I) 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)(I). 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 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.--Section 3(m)(1) of the 
Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(1)) is amended to 
read as follows:
            ``(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 
                effective date under section 7 of the Raise the Wage 
                Act, $4.15 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) $1.15; 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 
                increase made pursuant to subparagraph (B)(ii), the 
                minimum wage in effect under section 6(a)(1); and''.
    (b) Tips Retained by Employees.--Section 3(m) of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 203(m)) is amended--
            (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'' 
        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) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 203(m)), 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.--Section 6(i) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 206(i)), as added by section 
        5, is amended by striking ``or in accordance with subparagraph 
        (B) or (C) of section 3(m)(1) (as applicable),''.
            (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)), as 
        amended by subsection (a), takes effect.

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, $5.00 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) $1.05; 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 
                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)(1) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 206(g)(1)), as amended by 
        subsection (a), shall be repealed effective on the date 
        provided in paragraph (3).
            (2) Publication of notice.--Section 6(i) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 206(i)), as amended by section 
        3(c)(2), is further amended by striking ``or subparagraph (B) 
        or (C) of section 6(g)(1) (as applicable),''.
            (3) Effective date.--The repeal and amendment made by 
        paragraphs (1) and (2), respectively, shall take effect on the 
        date that is one day after the date on which the hourly wage 
        under section 6(g)(1)(C) of the Fair Labor Standards Act, 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 (h), or in 
accordance with subparagraph (B) or (C) of section 3(m)(1) (as 
applicable), section 14(c)(1)(A) (as applicable), or subparagraph (B) 
or (C) of section 6(g)(1) (as applicable), 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, the 
                greater of--
                            ``(i)(I) $4.25 an hour, beginning 1 year 
                        after the date the wage rate specified in 
                        section 6(a)(1)(A) takes effect;
                            ``(II) $6.25 an hour, beginning 2 years 
                        after such date;
                            ``(III) $8.25 an hour, beginning 3 years 
                        after such date;
                            ``(IV) $10.25 an hour, beginning 4 years 
                        after such date;
                            ``(V) $12.25 an hour, beginning 5 years 
                        after such date; and
                            ``(VI) the wage rate in effect under 
                        section 6(a)(1), on the date that is 6 years 
                        after the date the wage specified in section 
                        6(a)(1)(A) takes effect; or
                            ``(ii) if applicable, the wage rate in 
                        effect on the day before the date of enactment 
                        of the Raise the Wage Act 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.
            ``(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) transitioning the practices of such 
                        employers to comply with this subsection, as 
                        amended by the Raise the Wage Act; 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 other 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.--Section 6(i) of the Fair Labor Standards 
        Act of 1938 (29 U.S.C. 206(i)), as amended by section 4(b)(2), 
        is further amended by striking ``section 14(c)(1)(A) (as 
        applicable),''.
            (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 enactment of this Act.
                                 <all>