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H.R. 582 — what changed

Raise the Wage Act

From Reported in House to Placed on Calendar Senate. 3 sections amended and 1 added between Reported in House and Placed on Calendar Senate.

Sec. 2 Minimum wage increases

(a)
In general— Section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to read as follows:

“(1) except as otherwise provided in this section, not less than—

changed “(A) $8.55 $8.40 an hour, beginning on the effective date under section 7 of the Raise the Wage Act;

changed “(B) $9.85 $9.50 an hour, beginning 1 year after such effective date;

changed “(C) $11.15 $10.60 an hour, beginning 2 years after such effective date;

changed “(D) $12.45 $11.70 an hour, beginning 3 years after such effective date;

changed “(E) $13.75 $12.80 an hour, beginning 4 years after such effective date;

changed “(F) $15.00 $13.90 an hour, beginning 5 years after such effective date; anddate;

changed “(G) $15.00 an hour, beginning on the date that is 6 years after such effective date, and annually thereafter, the amount determined by the Secretary under subsection (h);”date; and

added “(H) beginning on the date that is 7 years after such effective date, and annually thereafter, the amount determined by the Secretary under subsection (h);”

(b)
Determination based on increase in the median hourly wage of all employees— Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) is amended by adding at the end the following:

“(h)

changed “(1) Not later than each date that is 90 days before a new minimum wage determined under subsection (a)(1)(G) (a)(1)(H) is to take effect, the Secretary shall determine the minimum wage to be in effect under this subsection for each period described in subsection (a)(1)(G). (a)(1)(H). The wage determined under this subsection for a year shall be—

“(A) not less than the amount in effect under subsection (a)(1) on the date of such determination;

“(B) increased from such amount by the annual percentage increase, if any, in the median hourly wage of all employees as determined by the Bureau of Labor Statistics; and

“(C) rounded up to the nearest multiple of $0.05.

“(2) In calculating the annual percentage increase in the median hourly wage of all employees for purposes of paragraph (1)(B), the Secretary, through the Bureau of Labor Statistics, shall compile data on the hourly wages of all employees to determine such a median hourly wage and compare such median hourly wage for the most recent year for which data are available with the median hourly wage determined for the preceding year.”

Sec. 3 Tipped employees

(a)
Base minimum wage for tipped employees and tips retained by employees— Section 3(m)(2)(A)(i) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)(i)) is amended to read as follows:

“(i) the cash wage paid such employee, which for purposes of such determination shall be not less than—

“(I) for the 1-year period beginning on the effective date under section 7 of the Raise the Wage Act, $3.60 an hour;

“(II) for each succeeding 1-year period until the hourly wage under this clause equals the wage in effect under section 6(a)(1) for such period, an hourly wage equal to the amount determined under this clause for the preceding year, increased by the lesser of—

“(aa) $1.50; or

“(bb) 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

“(III) for each succeeding 1-year period after the increase made pursuant to subclause (II), the minimum wage in effect under section 6(a)(1); and”

(b)
Tips retained by employees— Section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)) is amended—
(1)
in the second sentence of the matter following clause (ii), by striking “of this subsection, and all tips received by such employee have been retained by the employee” and inserting “of this subsection. Any employee shall have the right to retain any tips received by such employee”; and
(2)
by adding at the end the following: “An employer shall inform each employee of the right and exception provided under the preceding sentence.”.
(c)
Scheduled repeal of separate minimum wage for tipped employees—
(1)
Tipped employees— Section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)), as amended by subsections (a) and (b), is further amended by striking the sentence beginning with “In determining the wage an employer is required to pay a tipped employee,” and all that follows through “of this subsection.” and inserting “The wage required to be paid to a tipped employee shall be the wage set forth in section 6(a)(1).”.
(2)
Publication of notice— Subsection (i) of section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as amended by section 5, is further amended by striking “or in accordance with subclause (II) or (III) of section 3(m)(2)(A)(i)”.
(3)
changed Effective date— The amendments made by paragraphs (1) and (2) shall take effect on the date that is one 1 day after the date on which the hourly wage under subclause (III) of section 3(m)(2)(A)(i) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)(i)), as amended by subsection (a), takes effect.

Sec. 4 Newly hired employees who are less than 20 years old

(a)
Base minimum wage for newly hired employees who are less than 20 years old— Section 6(g)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(g)(1)) is amended by striking “a wage which is not less than $4.25 an hour.” and inserting the following:

“(A) for the 1-year period beginning on the effective date under section 7 of the Raise the Wage Act, $5.50 an hour;

“(B) for each succeeding 1-year period until the hourly wage under this paragraph equals the wage in effect under section 6(a)(1) for such period, an hourly wage equal to the amount determined under this paragraph for the preceding year, increased by the lesser of—

“(i) $1.25; or

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

“(C) for each succeeding 1-year period after the increase made pursuant to subparagraph (B)(ii), the minimum wage in effect under section 6(a)(1).”

(b)
Scheduled repeal of separate minimum wage for newly hired employees who are less than 20 years old—
(1)
In general— Section 6(g) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(g)), as amended by subsection (a), shall be repealed.
(2)
Publication of notice— Subsection (i) of section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), as amended by section 3(c)(2), is further amended by striking “or subparagraph (B) or (C) of subsection (g)(1),”.
(3)
changed Effective date— The repeal and amendment made by paragraphs (1) and (2), respectively, shall take effect on the date that is one 1 day after the date on which the hourly wage under subparagraph (C) of section 6(g)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(g)(1)), as amended by subsection (a), takes effect.

Sec. 9 GAO Report on Wage Increase Impact

added
(a)
added In general— Not later than 90 days before the date of the third wage increase to first take effect after the date of enactment of this Act, the Comptroller General, in consultation with the persons described in subsection (b), shall prepare and submit to Congress a report, that—
(1)
added identifies and analyzes the effects, in the aggregate, of the first wage increases and second wage increases after such date of enactment on business enterprises (including small business enterprises) including the effects, with respect to such enterprises, on—
(A)
added the wages and compensation of employees;
(B)
added the number of employees, disaggregated by full-time and part-time employees;
(C)
added the prices, sales, and revenues;
(D)
added employee turnover and retention;
(E)
added hiring and training costs; and
(F)
added productivity and absenteeism;
(2)
added to the extent practicable, identifies such effects in isolation from other factors that may affect business enterprises (including small business enterprises), including—
(A)
added broader economic conditions;
(B)
added changes in Federal, State, and local law, policy, and regulation;
(C)
added industry consolidation;
(D)
added natural disasters; and
(E)
added significant demographic changes;
(3)
added to the extent practicable, identifies and analyzes such effects for the Nation as a whole, and, separately, for—
(A)
added each census division, as designated by the Bureau of the Census;
(B)
added each metropolitan statistical area and nonmetropolitan portion (as such terms are defined by the Office of Management and Budget with respect to 2013); and
(C)
added each urbanized area, urbanized cluster, and rural area, as designated by the Bureau of the Census; and
(4)
added describes the methodology used to generate the information in the report.
(b)
added Expert consultation— The persons described in this subsection are—
(1)
added labor economists with expertise in minimum wage and low wage labor markets;
(2)
added workers (including agricultural workers), and the labor organizations and worker groups representing such workers;
(3)
added representatives of businesses, including small businesses, agricultural employers, and businesses in the accommodation and food services sector;
(4)
added State and local governments; and
(5)
added the Board of Governors of the Federal Reserve System.
(c)
added Congressional assessment and recommendations— Not later than 60 days after the date on which Congress receives the report under subsection (a), Congress shall—
(1)
added assess the findings of such report; and
(2)
added make recommendations with respect to actions of Congress to address the findings of such report, including actions to delay the next scheduled wage increases.
(d)
added Wage increase defined— The term “wage increase” means an increase in wages that takes effect under subsection (a)(1) or (g)(1) of section 6, section 3(m)(2)(A)(i), or section 14(c)(1)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), as amended by this Act.