Vote Smart's Synopsis:

Vote to pass a bill that amends the Fair Labor Standards Act and incrementally increases the federal minimum wage.

Highlights:

• Amends the Fair Labor Standards Act of 1938 to require the federal minimum wage to be increased to amounts that are equal to the following amounts (Sec. 2):

• $8.40 an hour, beginning on the effective date of this act;

• $9.50 an hour, beginning 1 year after such effective date;

• $10.60 an hour,  beginning 2 years after such effective date;

• $11.70 an hour,  beginning 3 years after such effective date;

• $12.80 an hour,  beginning 4 years after such effective date;

• $13.90 an hour, beginning 5 years after such effective date;

• $15.00 an hour, beginning 6 years after such effective date; and 

• Beginning 7 years after such effective date, and annually thereafter, the amount determined by the Secretary of Labor.

• Amends the Fair Labor Standards Act to require the cash wage paid to each tipped employee to be no less than the following amounts (Sec. 3):

• $3.60 per hour for the 1-year period beginning on the effective date of this act; and

• For each succeeding 1-year period, an hourly wage equal to the amount for the preceding year, increased by the lesser of either of the following:

• $1.50, or the amount necessary for the wage in effect under this clause to equal the wage in effect under section 6(a)(1) for such period, rounded up to the nearest multiple of $0.05; and

• For each succeeding 1-year period after the initial increase, the minimum wage in effect.

• Amends the Fair Labor Standards Act to authorize an employer to pay a newly hired employee who is less than 20 years old, during the first 90 consecutive calendar days after which they are initially employed, the following amounts (Sec. 4):

• $5.50 per hour for the 1-year period beginning on this act’s effective date; and

• For each succeeding 1-year period until the hourly wage equals the wage listed in the above paragraph for the preceding year, increased by the lesser of either $1.25 or the amount necessary for the wage in effect to equal the wage nearest to the standard minimum wage, rounded to the nearest multiple of $0.05.

• Amends the Fair Labor Standards Act to require wages for individuals with disabilities to be set at the following amounts (Sec. 6):

• $4.25 an hour, beginning 1 year after the effective date;

• $6.40 an hour, beginning 2 years after such effective date;

• $8.55 an hour, beginning 3 years after such effective date; 

• $10.70 an hour, beginning 4 years after such effective date; and 

• $12.85 an hour, beginning 5 years after such effective date.

• Requires the Comptroller General to prepare and submit a report to Congress that includes the following information, no later than 90 days before the 3rd wage increase is to take effect (Sec. 9):

• Identifies and analyzes the effects of the first wage increases and second wage increases on business enterprises including the effects on:

• The wages and compensation of employees;

• The number of employees, disaggregated by full and part-time employees;

• The prices, sales, and revenues;

• Hiring and training costs; and 

• Productivity and absenteeism.

• Specifies that this act will go into effect three months following the date of enactment (Sec. 7).

Full Bill Text

Full Bill Text