What does Preamble of HR 2743 do?

This bill is formally titled 'To provide for increases in the Federal minimum wage, and for other purposes.' The bill was introduced in the House of Representatives on April 8, 2025.

What does SHORT TITLE. of HR 2743 do?

This bill is formally titled the Raise the Wage Act of 2025.

What does MINIMUM WAGE INCREASES. of HR 2743 do?

This section amends the Fair Labor Standards Act of 1938 to establish a schedule of minimum wage increases. The minimum wage will increase to $9.50 per hour beginning on the effective date under section 7 of the Raise the Wage Act of 2025. Subsequent increases are scheduled for $11.00, $12.50, $14.00, $15.50, and $17.00 per hour, occurring one to five years after the initial effective date. After six years, the minimum wage will be determined annually by the Secretary based on the increase in the median hourly wage of all employees. The Secretary will determine the annual minimum wage no later than 90 days before it takes effect. The annual wage increase will be based on the percentage increase in the median hourly wage as determined by the Bureau of Labor Statistics.

What does TIPPED EMPLOYEES. of HR 2743 do?

This section amends the Fair Labor Standards Act of 1938 regarding tipped employees. It establishes a schedule of increasing minimum cash wages for tipped employees, starting at $6.00 an hour and reaching $15.00 an hour within five years. After five years, the minimum wage for tipped employees will equal the standard minimum wage under section 6(a)(1). The section clarifies that employees have the right to retain their tips and requires employers to inform employees of this right. It repeals the separate minimum wage calculation for tipped employees, aligning their wage with the standard minimum wage. The amendments regarding the minimum wage for tipped employees will take effect one day after the hourly wage under subclause (VIII) takes effect. Section 16 of the Fair Labor Standards Act is amended to include 'or used' after 'kept' in certain penalty clauses.

What does NEWLY HIRED EMPLOYEES WHO ARE LESS THAN 20 YEARS OLD. of HR 2743 do?

This section amends the Fair Labor Standards Act of 1938 regarding the minimum wage for newly hired employees under 20 years old. It establishes a tiered minimum wage system for these employees, starting at $6.00 per hour for the first year following the effective date of the Raise the Wage Act of 2025. The wage increases by $1.75 annually or the amount necessary to reach the standard minimum wage under section 6(a)(1), whichever is less. The separate minimum wage for newly hired employees under 20 is scheduled to be repealed once the tiered wage reaches the standard minimum wage. The repeal of the separate minimum wage and related amendments will take effect one day after the hourly wage under the tiered system equals the standard minimum wage.

What does PUBLICATION OF NOTICE. of HR 2743 do?

This section amends Section 6 of the Fair Labor Standards Act of 1938. The amendment requires the Secretary of Labor to publish a notice of any increase in the required wage. The notice must be published in the Federal Register and on the Department of Labor's website. The notice must be published no later than 60 days prior to the effective date of the wage increase.

What does PROMOTING ECONOMIC SELF-SUFFICIENCY FOR INDIVIDUALS WITH of HR 2743 do?

This section amends the Fair Labor Standards Act of 1938 to gradually increase the minimum wage for individuals with disabilities. The amendments establish a schedule for wage increases, starting at $5.00 per hour and reaching $15.50 per hour within four years, before aligning with the standard minimum wage. The Secretary is prohibited from issuing new special certificates allowing employers to pay individuals with disabilities less than the minimum wage, except for those already holding such certificates before the Raise the Wage Act of 2025. Employers with existing special certificates will receive technical assistance to comply with the new wage requirements and ensure continued employment opportunities. Individuals employed at special minimum wage rates will receive information and referrals to employment resources. The authority to issue special certificates will expire once the standard minimum wage takes effect. Subsection (i) of section 6 of the Fair Labor Standards Act of 1938 is amended to include references to section 14(c)(1)(A).

What does GENERAL EFFECTIVE DATE. of HR 2743 do?

This section establishes a general effective date for the Act and its amendments. The Act will take effect on the first day of the third month following the date of its enactment.

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Raise the Wage Act of 2025 — HR. 2743

Last updated: 4/8/2025 · Introduced: 4/8/2025

Author: Robert Scott (D-VA)

TL;DR (AI)

This bill gradually increases the federal minimum wage to $17 per hour within six years, after which it will be adjusted annually based on the median hourly wage.
It establishes a separate schedule to raise the minimum cash wage for tipped employees to $15 per hour within five years, aligning their wage with the standard minimum wage and clarifying employee rights to retain tips.
The bill creates a tiered minimum wage system for newly hired employees under 20, gradually increasing their wage until it reaches the standard minimum wage, and phases out special certificates allowing employers to pay individuals with disabilities less than the minimum wage.

119th Congressin committeeS. 1332(In Committee)Official page

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Includes provisions on preamble, short title., and 6 more.

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