II 119THCONGRESS 1 STSESSION S. 1332 To provide for increases in the Federal minimum wage, and for other purposes. IN THE SENATE OF THE UNITED STATES APRIL8, 2025 Mr. S ANDERS(for himself, Ms. ALSOBROOKS, Ms. BALDWIN, Mr. B LUMENTHAL, Ms. BLUNTROCHESTER, Mr. BOOKER, Ms. CANTWELL, Ms. D UCKWORTH, Mr. DURBIN, Mr. FETTERMAN, Mr. GALLEGO, Mrs. G ILLIBRAND, Ms. HIRONO, Mr. KAINE, Mr. KELLY, Mr. KIM, Ms. KLO- BUCHAR, Mr. MARKEY, Mr. MERKLEY, Mr. MURPHY, Mrs. MURRAY, Mr. P ADILLA, Mr. PETERS, Mr. REED, Mr. SCHATZ, Mr. SCHIFF, Ms. SMITH, Mr. V ANHOLLEN, Mr. WARNOCK, Ms. WARREN, Mr. WELCH, Mr. W HITEHOUSE, and Mr. WYDEN) 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 Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Raise the Wage Act 4 of 2025’’. 5 VerDate Sep 11 2014 03:15 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1332.IS S1332 kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 •S 1332 IS SEC. 2. MINIMUM WAGE INCREASES. 1 (a) I NGENERAL.—Section 6(a)(1) of the Fair Labor 2 Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended 3 to read as follows: 4 ‘‘(1) except as otherwise provided in this sec-5 tion, not less than— 6 ‘‘(A) $9.50 an hour, beginning on the ef-7 fective date under section 7 of the Raise the 8 Wage Act of 2025; 9 ‘‘(B) $11.00 an hour, beginning 1 year 10 after such effective date; 11 ‘‘(C) $12.50 an hour, beginning 2 years 12 after such effective date; 13 ‘‘(D) $14.00 an hour, beginning 3 years 14 after such effective date; 15 ‘‘(E) $15.50 an hour, beginning 4 years 16 after such effective date; 17 ‘‘(F) $17.00 an hour, beginning 5 years 18 after such effective date; and 19 ‘‘(G) beginning on the date that is 6 years 20 after such effective date, and annually there-21 after, the amount determined by the Secretary 22 under subsection (h);’’. 23 (b) D ETERMINATIONBASED ONINCREASE IN THE 24 M EDIANHOURLYWAGE OFALLEMPLOYEES.—Section 25 VerDate Sep 11 2014 03:15 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1332.IS S1332 kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 •S 1332 IS 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 1 206) is amended by adding at the end the following: 2 ‘‘(h)(1) Not later than each date that is 90 days be-3 fore a new minimum wage determined under subsection 4 (a)(1)(G) is to take effect, the Secretary shall determine 5 the minimum wage to be in effect under this subsection 6 for each period described in subsection (a)(1)(G). The 7 wage determined under this subsection for a year shall 8 be— 9 ‘‘(A) not less than the amount in effect under 10 subsection (a)(1) on the date of such determination; 11 ‘‘(B) increased from such amount by the annual 12 percentage increase, if any, in the median hourly 13 wage of all employees as determined by the Bureau 14 of Labor Statistics; and 15 ‘‘(C) rounded up to the nearest multiple of 16 $0.05, if the amount after applying subparagraphs 17 (A) and (B) is not a multiple of $0.05. 18 ‘‘(2) In calculating the annual percentage increase in 19 the median hourly wage of all employees for purposes of 20 paragraph (1)(B), the Secretary, through the Bureau of 21 Labor Statistics, shall compile data on the hourly wages 22 of all employees to determine such a median hourly wage 23 and compare such median hourly wage for the most recent 24 VerDate Sep 11 2014 03:15 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1332.IS S1332 kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 •S 1332 IS year for which data are available with the median hourly 1 wage determined for the preceding year.’’. 2 SEC. 3. TIPPED EMPLOYEES. 3 (a) B ASEMINIMUMWAGE FORTIPPEDEMPLOYEES 4 ANDTIPSRETAINED BY EMPLOYEES.—Section 5 3(m)(2)(A)(i) of the Fair Labor Standards Act of 1938 6 (29 U.S.C. 203(m)(2)(A)(i)) is amended to read as fol-7 lows: 8 ‘‘(i) the cash wage paid such employee, which 9 for purposes of such determination shall be not less 10 than— 11 ‘‘(I) for the 1-year period beginning on the 12 effective date under section 7 of the Raise the 13 Wage Act of 2025, $6.00 an hour; 14 ‘‘(II) $8.00 an hour, beginning 1 year 15 after such effective date; 16 ‘‘(III) $10.00 an hour, beginning 2 years 17 after such effective date; 18 ‘‘(IV) $12.00 an hour, beginning 3 years 19 after such effective date; 20 ‘‘(V) $13.50 an hour, beginning 4 years 21 after such effective date; 22 ‘‘(VI) $15.00 an hour, beginning 5 years 23 after such effective date; 24 VerDate Sep 11 2014 03:15 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1332.IS S1332 kjohnson on DSK7ZCZBW3PROD with $$_JOB 5 •S 1332 IS ‘‘(VII) $17.00 an hour, beginning 6 years 1 after such effective date; and 2 ‘‘(VIII) for each succeeding 1-year period 3 after the increase made pursuant to subclause 4 (VII), the minimum wage in effect under sec-5 tion 6(a)(1); and’’. 6 (b) T IPSRETAINED BY EMPLOYEES.—Section 7 3(m)(2)(A) of the Fair Labor Standards Act of 1938 (29 8 U.S.C. 203(m)(2)(A)) is amended— 9 (1) in the second sentence of the matter fol-10 lowing clause (ii), by striking ‘‘of this subsection, 11 and all tips received by such employee have been re-12 tained by the employee’’ and inserting ‘‘of this sub-13 section. Any employee shall have the right to retain 14 any tips received by such employee’’; and 15 (2) by adding at the end the following: ‘‘An em-16 ployer shall inform each employee of the right and 17 exception provided under the preceding sentence.’’. 18 (c) S CHEDULEDREPEAL OFSEPARATEMINIMUM 19 W AGE FORTIPPEDEMPLOYEES.— 20 (1) T IPPED EMPLOYEES .—Section 3(m)(2)(A) 21 of the Fair Labor Standards Act of 1938 (29 U.S.C. 22 203(m)(2)(A)), as amended by subsections (a) and 23 (b), is further amended by striking the sentence be-24 ginning with ‘‘In determining the wage an employer 25 VerDate Sep 11 2014 03:15 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1332.IS S1332 kjohnson on DSK7ZCZBW3PROD with $$_JOB 6 •S 1332 IS is required to pay a tipped employee,’’ and all that 1 follows through ‘‘of this subsection.’’ and inserting 2 ‘‘The wage required to be paid to a tipped employee 3 shall be the wage set forth in section 6(a)(1).’’. 4 (2) P UBLICATION OF NOTICE .—Subsection (i) 5 of section 6 of the Fair Labor Standards Act of 6 1938 (29 U.S.C. 206), as added by section 5 and 7 amended by section 6(b)(1), is further amended by 8 striking ‘‘or in accordance with subclause (II) or 9 (III) of section 3(m)(2)(A)(i),’’. 10 (3) E FFECTIVE DATE.—The amendments made 11 by paragraphs (1) and (2) shall take effect on the 12 date that is 1 day after the date on which the hourly 13 wage under subclause (VIII) of section 3(m)(2)(A)(i) 14 of the Fair Labor Standards Act of 1938 (29 U.S.C. 15 203(m)(2)(A)(i)), as amended by subsection (a), 16 takes effect. 17 (d) P ENALTIES.—Section 16 of the Fair Labor 18 Standards Act of 1938 (29 U.S.C. 216) is amended— 19 (1) in the third sentence of subsection (b), by 20 inserting ‘‘or used’’ after ‘‘kept’’; and 21 (2) in the second sentence of subsection (e)(2), 22 by inserting ‘‘or used’’ after ‘‘kept’’. 23 VerDate Sep 11 2014 03:15 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1332.IS S1332 kjohnson on DSK7ZCZBW3PROD with $$_JOB 7 •S 1332 IS SEC. 4. NEWLY HIRED EMPLOYEES WHO ARE LESS THAN 20 1 YEARS OLD. 2 (a) B ASEMINIMUMWAGE FORNEWLYHIREDEM-3 PLOYEESWHOARELESSTHAN20 YEARSOLD.—Section 4 6(g)(1) of the Fair Labor Standards Act of 1938 (29 5 U.S.C. 206(g)(1)) is amended by striking ‘‘a wage which 6 is not less than $4.25 an hour.’’ and inserting the fol-7 lowing: ‘‘a wage at a rate that is not less than— 8 ‘‘(A) for the 1-year period beginning on the ef-9 fective date under section 7 of the Raise the Wage 10 Act of 2025, $6.00 an hour; 11 ‘‘(B) for each succeeding 1-year period until the 12 hourly wage under this paragraph equals the wage 13 in effect under section 6(a)(1) for such period, an 14 hourly wage equal to the amount determined under 15 this paragraph for the preceding year, increased by 16 the lesser of— 17 ‘‘(i) $1.75; or 18 ‘‘(ii) the amount necessary for the wage in 19 effect under this paragraph to equal the wage 20 in effect under section 6(a)(1) for such period; 21 and 22 ‘‘(C) for each succeeding 1-year period after the 23 increase made pursuant to subparagraph (B)(ii), the 24 minimum wage in effect under section 6(a)(1).’’. 25 VerDate Sep 11 2014 03:15 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1332.IS S1332 kjohnson on DSK7ZCZBW3PROD with $$_JOB 8 •S 1332 IS (b) SCHEDULEDREPEAL OFSEPARATEMINIMUM 1 W AGE FORNEWLYHIREDEMPLOYEESWHOARELESS 2 T HAN20 YEARSOLD.— 3 (1) I N GENERAL.—Section 6(g) of the Fair 4 Labor Standards Act of 1938 (29 U.S.C. 206(g)), as 5 amended by subsection (a), shall be repealed. 6 (2) P UBLICATION OF NOTICE .—Subsection (i) 7 of section 6 of the Fair Labor Standards Act of 8 1938 (29 U.S.C. 206), as added by section 5 and 9 amended by sections 6(b)(1) and 3(c)(2), is further 10 amended by striking ‘‘or subparagraph (B) or (C) of 11 subsection (g)(1)’’. 12 (3) E FFECTIVE DATE.—The repeal and amend-13 ment made by paragraphs (1) and (2), respectively, 14 shall take effect on the date that is 1 day after the 15 date on which the hourly wage under subparagraph 16 (C) of section 6(g)(1) of the Fair Labor Standards 17 Act of 1938 (29 U.S.C. 206(g)(1)), as amended by 18 subsection (a), takes effect. 19 SEC. 5. PUBLICATION OF NOTICE. 20 Section 6 of the Fair Labor Standards Act of 1938 21 (29 U.S.C. 206), as amended by section 2(b), is further 22 amended by adding at the end the following: 23 ‘‘(i) Not later than 60 days prior to the effective date 24 of any increase in the required wage determined under 25 VerDate Sep 11 2014 03:15 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1332.IS S1332 kjohnson on DSK7ZCZBW3PROD with $$_JOB 9 •S 1332 IS subsection (a)(1) or subparagraph (B) or (C) of subsection 1 (g)(1), or in accordance with subclause (II) or (III) of sec-2 tion 3(m)(2)(A)(i) or section 14(c)(1)(A), the Secretary 3 shall publish in the Federal Register and on the website 4 of the Department of Labor a notice announcing each in-5 crease in such required wage.’’. 6 SEC. 6. PROMOTING ECONOMIC SELF-SUFFICIENCY FOR IN-7 DIVIDUALS WITH DISABILITIES. 8 (a) W AGES.— 9 (1) T RANSITION TO FAIR WAGES FOR INDIVID -10 UALS WITH DISABILITIES .—Subparagraph (A) of 11 section 14(c)(1) of the Fair Labor Standards Act of 12 1938 (29 U.S.C. 214(c)(1)) is amended to read as 13 follows: 14 ‘‘(A) at a rate that equals or exceeds, for each 15 year, the greater of— 16 ‘‘(i)(I) $5.00 an hour, beginning on the ef-17 fective date under section 7 of the Raise the 18 Wage Act of 2025; 19 ‘‘(II) $7.50 an hour, beginning 1 year 20 after such effective date; 21 ‘‘(III) $10.00 an hour, beginning 2 years 22 after such effective date; 23 ‘‘(IV) $12.50 an hour, beginning 3 years 24 after such effective date; 25 VerDate Sep 11 2014 03:15 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1332.IS S1332 kjohnson on DSK7ZCZBW3PROD with $$_JOB 10 •S 1332 IS ‘‘(V) $15.50 an hour, beginning 4 years 1 after such effective date; and 2 ‘‘(VI) the wage rate in effect under section 3 6(a)(1), beginning 5 years after such effective 4 date; or 5 ‘‘(ii) if applicable, the wage rate in effect 6 on the day before the date of enactment of the 7 Raise the Wage Act of 2025 for the employ-8 ment, under a special certificate issued under 9 this paragraph, of the individual for whom the 10 wage rate is being determined under this sub-11 paragraph,’’. 12 (2) P ROHIBITION ON NEW SPECIAL CERTIFI -13 CATES; TRANSITION ASSISTANCE.— 14 (A) I N GENERAL.—Section 14(c) of the 15 Fair Labor Standards Act of 1938 (29 U.S.C. 16 214(c)) is amended by adding at the end the 17 following: 18 ‘‘(6) P ROHIBITION ON NEW SPECIAL CERTIFI -19 CATES.—Notwithstanding paragraph (1), the Sec-20 retary shall not issue a special certificate under this 21 subsection to an employer that was not issued a spe-22 cial certificate under this subsection before the date 23 of enactment of the Raise the Wage Act of 2025. 24 VerDate Sep 11 2014 03:15 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1332.IS S1332 kjohnson on DSK7ZCZBW3PROD with $$_JOB 11 •S 1332 IS ‘‘(7) TRANSITION ASSISTANCE.—Upon request, 1 the Secretary shall provide— 2 ‘‘(A) technical assistance and information 3 to employers issued a special certificate under 4 this subsection for the purposes of— 5 ‘‘(i) assisting such employers to com-6 ply with this subsection, as amended by 7 the Raise the Wage Act of 2025; and 8 ‘‘(ii) ensuring continuing employment 9 opportunities for individuals with disabil-10 ities receiving a special minimum wage 11 rate under this subsection; and 12 ‘‘(B) information to individuals employed 13 at a special minimum wage rate under this sub-14 section, which may include referrals to Federal 15 or State entities with expertise in competitive 16 integrated employment.’’. 17 (B) E FFECTIVE DATE.—The amendments 18 made by this paragraph shall take effect on the 19 date of enactment of this Act. 20 (3) S UNSET.—Section 14(c) of the Fair Labor 21 Standards Act of 1938 (29 U.S.C. 214(c)), as 22 amended by paragraph (2), is further amended by 23 adding at the end the following: 24 VerDate Sep 11 2014 03:15 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1332.IS S1332 kjohnson on DSK7ZCZBW3PROD with $$_JOB 12 •S 1332 IS ‘‘(8) SUNSET.—Beginning on the day after the 1 date on which the wage rate described in paragraph 2 (1)(A)(i)(VI) takes effect, the authority to issue spe-3 cial certificates under paragraph (1) shall expire, 4 and no special certificates issued under paragraph 5 (1) shall have any legal effect.’’. 6 (b) P UBLICATION OFNOTICE.— 7 (1) A MENDMENT.—Subsection (i) of section 6 8 of the Fair Labor Standards Act of 1938 (29 U.S.C. 9 206), as added by section 5, is amended by striking 10 ‘‘or section 14(c)(1)(A)’’. 11 (2) E FFECTIVE DATE.—The amendment made 12 by paragraph (1) shall take effect on the day after 13 the date on which the wage rate described in para-14 graph (1)(A)(i)(VI) of section 14(c) of the Fair 15 Labor Standards Act of 1938 (29 U.S.C. 214(c)), as 16 amended by subsection (a)(1), takes effect. 17 SEC. 7. GENERAL EFFECTIVE DATE. 18 Except as otherwise provided in this Act, this Act and 19 the amendments made by this Act shall take effect on the 20 first day of the third month that begins after the date 21 of the enactment of this Act. 22 Æ VerDate Sep 11 2014 03:15 Apr 17, 2025 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6301 E:\BILLS\S1332.IS S1332 kjohnson on DSK7ZCZBW3PROD with $$_JOB