Raise the Wage Act

Raise the Wage Act of 2023
Great Seal of the United States
Long titleTo provide for increases in the Federal minimum wage, and for other purposes.
Announced inthe 118th United States Congress
Number of co-sponsors168
Legislative history
History of the US federal minimum wage. Lower line is nominal dollars. Top line is inflation-adjusted.[1][2]

The Raise the Wage Act is a proposed United States law that would increase the federal minimum wage to US$17.[3][4] Versions of the bill have been introduced in each United States Congress since 2017.

Background

Federal Minimum Wage

The minimum wage in the United States is set by U.S. labor law and a range of state and local laws. The first federal minimum wage was created as part of the National Industrial Recovery Act of 1933, signed into law by President Franklin D. Roosevelt, but declared unconstitutional. In 1938 the Fair Labor Standards Act established it at $0.25 an hour ($5.19 in 2022 dollars). Its purchasing power peaked in 1968 at $1.60 ($13.46 in 2022 dollars).[1] The Fair Minimum Wage Act of 2007 has set the minimum wage at $7.25 per hour since 2009. The real value of the federal minimum wage in 2022 dollars has decreased by 46% since its inflation-adjusted peak in February 1968.

Provisions

Minimum Wage Increases

The most recently introduced bill would gradually increase the minimum wage over the 5 years following the bill's passage and ultimately eliminate sub-minimum wages for tipped, disabled, and youth workers.[3] Additionally, once wages reach $17.00/hr, the minimum wage will be pegged to median wage growth so as to prevent the value of the minimum wage from decreasing.

Regular Employees
Effective Date New Minimum Wage
The next year on January 1 $9.50
1 year later $11.00
2 years later $12.50
3 years later $14.00
4 years later $15.50
5 years later $17.00
Employees with Disabilities
Effective Date New Minimum Wage
The next year on January 1 $5.00
1 year later $7.50
2 years later $10.00
3 years later $12.50
4 years later $15.50
5 years later $17.00
Tipped Employees
Effective Date New Minimum Wage
The next year on January 1 $6.00
1 year later $8.00
2 years later $10.00
3 years later $12.00
4 years later $13.50
5 years later $15.00
6 years later $17.00
Employees Under 20 Years Old
Effective Date New Minimum Wage
The next year on January 1 $6.00
1 year later $7.75
2 years later $9.50
3 years later $11.25
4 years later $13.50
5 years later $13.00
6 years later $16.50
7 years later $17.00

Legislative history

As of April 18, 2024:

Congress Short title Bill number(s) Date introduced Sponsor(s) # of cosponsors Latest status
115th Congress Raise the Wage Act H.R. 15 May 25, 2017 Bobby Scott

(D-VA)

171 Died in committee
S. 1242 May 25, 2017 Bernie Sanders

(D-VT)

31 Died in committee
116th Congress Raise the Wage Act H.R. 582 January 16, 2019 Bobby Scott

(D-VA)

205 Passed the House
S. 150 January 16, 2019 Bernie Sanders

(D-VT)

32 Died in committee
117th Congress Raise the Wage Act of 2021 H.R. 603 January 28, 2021 Bobby Scott

(D-VA)

202 Died in committee
S. 53 January 26, 2021 Bernie Sanders

(D-VT)

37 Died in committee
118th Congress Raise the Wage Act of 2023 H.R.4889 July 25, 2023 Bobby Scott

(D-VA)

172 Referred to Committees of Jurisdiction
S.2488 July 25, 2023 Bernie Sanders

(D-VT)

31 Referred to Committees of Jurisdiction

See also

References

  1. ^ a b Congressional Research Service (March 2, 2023). "State Minimum Wages: An Overview". Chart on page 3.
  2. ^ FRED Graph. Using U.S. Department of Labor data. Federal Minimum Hourly Wage for Nonfarm Workers for the United States. Inflation adjusted (by FRED) via the Consumer Price Index for All Urban Consumers: All Items in U.S. City Average (CPIAUCSL). Run cursor over graph to see nominal and real minimum wages pop up for specific months.
  3. ^ a b "Raise the Wage Act of 2023". congress.gov. July 25, 2023. Retrieved November 25, 2024.
  4. ^ "The impact of the Raise the Wage Act of 2023". Economic Policy Institute. Retrieved November 25, 2024.

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