Raise the Wage Act of 2024

[camilodeso]

S. xxx

IN THE SENATE OF THE UNITED STATES
Mr. Coleman of Colorado (for himself, Ms. Kahiona of Hawaii, Ms. Reyes of Nevada, and others) introduced the following bill

A BILL
To amend the Fair Labor Standards Act of 1938 to provide for a gradual increase in the federal minimum wage to $17.00 by 2029, and to provide support for small businesses in adjusting to the wage increase.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.
This Act may be cited as the “Raise the Wage Act of 2024.”

SEC. 2. FINDINGS AND PURPOSE.
Congress finds that—
(1) a fair and livable wage is essential for the well-being of American workers and their families, particularly those in marginalized communities;
(2) increasing the minimum wage will improve the quality of life for millions of American families and help reduce poverty;
(3) a gradual increase over several years allows businesses to adapt while ensuring workers receive fair compensation; and
(4) raising the minimum wage is a necessary step toward promoting economic justice, fairness, and equitable growth for working-class families.

SEC. 3. MINIMUM WAGE INCREASE.
Section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended by striking subparagraphs (A) and (B) and inserting the following:
“(A) Beginning on January 1, 2025, the minimum wage for employees shall be not less than $9.50 per hour.
“(B) Beginning on January 1, 2026, the minimum wage for employees shall be not less than $11.00 per hour.
“(C) Beginning on January 1, 2027, the minimum wage for employees shall be not less than $13.00 per hour.
“(D) Beginning on January 1, 2028, the minimum wage for employees shall be not less than $15.00 per hour.
“(E) Beginning on January 1, 2029, the minimum wage for employees shall be not less than $17.00 per hour.
“(F) Beginning on January 1, 2030, and annually thereafter, the minimum wage shall be automatically adjusted based on the annual percentage increase, if any, in the Consumer Price Index for All Urban Consumers (CPI-U), as determined by the Bureau of Labor Statistics.”

SEC. 4. MINIMUM WAGE FOR TIPPED WORKERS.
Section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)) is amended by adding at the end the following:
“(iii) Notwithstanding clauses (i) and (ii), the cash wage paid to any employee engaged in an occupation in which the employee customarily and regularly receives more than $30 a month in tips shall not be less than—
“(I) $5.00 per hour, beginning on January 1, 2025;
“(II) $6.00 per hour, beginning on January 1, 2026;
“(III) $7.00 per hour, beginning on January 1, 2027;
“(IV) $8.00 per hour, beginning on January 1, 2028;
“(V) $9.50 per hour, beginning on January 1, 2029, with annual adjustments thereafter in accordance with the Consumer Price Index for All Urban Consumers.”

SEC. 5. SMALL BUSINESS SUPPORT.
(a) Small Business Wage Adjustment Fund.
(1) The Secretary of the Treasury, in consultation with the Administrator of the Small Business Administration (SBA), shall establish a Small Business Wage Adjustment Fund. The fund will provide tax credits and grants to small businesses to assist in the transition to higher wages.
(2) The fund is authorized to provide—
(A) tax credits of up to $2,500 per employee per year for businesses with fewer than 25 employees;
(B) tax credits of up to $1,500 per employee per year for businesses with 25 to 50 employees; and
(C) grant assistance of up to $50,000 per small business over the five-year transition period for businesses demonstrating financial hardship.
(3) The total appropriation for the fund shall be $5 billion for the fiscal years 2025 through 2029.

(b) Small Business Administration Training Programs.
(1) The SBA shall expand its training programs to assist small businesses in transitioning to the new minimum wage.
(2) An additional $500 million shall be authorized over five years to provide financial planning, wage adjustment strategies, and operational support to small businesses.
(3) Priority shall be given to businesses in economically distressed areas and minority-owned businesses.

SEC. 6. ENFORCEMENT AND PENALTIES.
(a) Employers that fail to comply with the wage increases as provided in this Act shall be subject to fines and penalties enforced by the Department of Labor in accordance with the provisions of the Fair Labor Standards Act of 1938.
(b) The Secretary of Labor shall issue regulations necessary to carry out the provisions of this Act.

SEC. 7. EFFECTIVE DATE.
This Act shall take effect on January 1, 2025.

 

PES: The Raise the Wage Act of 2024 gradually increases the federal minimum wage to $17 an hour by 2029 while providing support to small businesses to ease the transition. Starting at $9.50 in 2025, the wage will rise in stages until it reaches $17 by 2029, after which it will adjust annually for inflation. Tipped workers' wages will follow a similar schedule, starting at $5.00 and increasing to $9.50 by 2029, with inflation-based adjustments thereafter. To help small businesses manage these changes, the bill establishes a $5 billion Small Business Wage Adjustment Fund, offering tax credits and grants for businesses with up to 50 employees, alongside $500 million for expanded Small Business Administration training programs. These measures aim to provide businesses with financial planning and wage adjustment strategies. The Department of Labor will enforce compliance, and the Act is set to take effect on January 1, 2025.

Edited 1 hour ago by camilodeso

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