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SECTION 1. SHORT TITLE.

This Act may be cited as the ''Pay Workers a Living Wage Act''.

SEC. 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)) is amended to read
as follows:
''(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, whichever date is later;
''(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) is amended by adding at the end the
following:
''(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)) 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 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, whichever date is later, $3.15 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) $1.50; 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)) 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.''.
(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)), as amended by subsections (b) and (c),
is 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.--Effective on the date described
in paragraph (3), section 6(i) of the Fair Labor Standards Act
of 1938 (29 U.S.C. 206(i)), as added by subsection (e), is
amended by striking ''or required for tipped employees'' and
all that follows through ''(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)) takes
effect.
(e) Youth Minimum Wage.--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 ''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) is
further amended by adding at the end the following:
''(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' means
any increase in the minimum wage that is--
''(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 (e) 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.
Output:
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 Department 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 under age 20, during the first 90 consecutive days after initial employment, a wage at a rate (currently $4.25 per hour) that is not less than the standard minimum rate, reduced by $3.00 per hour. The Secretary must publish the amount of any upwardly adjusted required wage in the Federal Register and on the Department of Labor's website 60 days before it takes effect.