Raise the Wage Act

March 5, 2021 | S.53

It's been a decade since the federal minimum wage has increased. Meanwhile, the cost of living has continually increased for working Americans. For many Americans, working 40 hours or more a week is not enough to support themselves and their families. Airline employees, call center workers, retail store employees, and bank workers work full time for some of the most highly profitable corporations, but many still earn poverty level wages. Workers’ productivity has risen by over 70 percent in the last four decades, but our wages have only increased by 11 percent over the same time period.

At a time when wage stagnation and income inequality hold back our families and our economy, the Raise the Wage Act will begin to reverse that cycle and raise pay broadly, especially for the most vulnerable members of the workforce. Specifically, the Raise the Wage Act will:

• Index future increases in the federal minimum wage to median wage growth to ensure the value of minimum wage does not once again erode over time;
• Guarantee tipped workers are paid at least the full federal minimum wage by phasing out the subminimum wage for tipped workers, which will ensure decent, consistent pay without  eliminating tips; 
• Guarantee teen workers are paid at least the full federal minimum wage by phasing out the rarely used subminimum wage for youth workers; and 
• End subminimum wage certificates for workers with disabilities to provide opportunities for workers with disabilities to be competitively employed and participate more fully in their communities.

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