Raise the Wage Act explained

Raise the Wage Act of 2023
Fullname:To provide for increases in the Federal minimum wage, and for other purposes.
Introduced In The:118th
Number Of Co-Sponsors:168
Introducedin:House of Representatives
Leghisturl:https://www.congress.gov/bill/118th-congress/house-bill/4889?s=10&r=2&q=%7B%22search%22%3A%22Raise+the+Wage+Act%22%7D
Introducedbill:H.R.4889
Introduceddate:June 25, 2023
Introducedby:Bobby Scott (DVA)
Committees:House Committee on Education and Labor

The Raise the Wage Act is a proposed United States law that would increase the federal minimum wage to US$15.[1] [2] It has 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). 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 next 5 years as follows:[3]

Regular Employee!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$15.00
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$15.00

Tipped Employees

The bill raises the minimum wage to $4.95 an hour for tipped employees and their employers.

New Employees that are 20 years old or less

The bill raises the minimum wage to $6.00 an hour for newly hired employees who are 20 years older or less.

Legislative history

As of April 18, 2024:

CongressShort titleBill number(s)Date introducedSponsor(s)
  1. of cosponsors
Latest status
115th CongressRaise the Wage ActMay 25, 2017Bobby Scott(D-VA)171Died in committee
May 25, 2017Bernie Sanders(D-VT)31Died in committee
116th CongressRaise the Wage ActJanuary 16, 2019Bobby Scott(D-VA)205Passed the House
January 16, 2019Bernie Sanders(D-VT)32Died in committee
117th CongressRaise the Wage Act of 2021January 28, 2021Bobby Scott(D-VA)202Died in committee
January 26, 2021Bernie Sanders(D-VT)37Died in committee
118th CongressRaise the Wage Act of 2023H.R.4889July 25, 2023Bobby Scott(D-VA)170Referred to Committees of Jurisdiction
S.2488 July 25, 2023Bernie Sanders(D-VT)31Referred to Committees of Jurisdiction

See also

Notes and References

  1. Web site: 2019-05-10. The Raise the Wage Act, Explained. 2021-03-11. Indivisible. en.
  2. News: 2021-03-26. Minimum wage fight: 'There's no recovery without raising it'. en-GB. BBC News. 2021-04-23.
  3. Web site: 2021-01-28. Text - H.R.603 - 117th Congress (2021-2022): Raise the Wage Act of 2021. 2021-03-14. www.congress.gov.