This bill would raise the federal minimum wage to $15 per hour in 2020 by phasing in five annual increases beginning in 2016. It would also gradually eliminate the tipped minimum wage. Currently, the federal minimum wage is $7.25 per hour, though a majority of states have adopted minimum wages that exceed the federal minimum.
In 2016 the federal minimum wage would be raised to $9 per hour, then to $10.50 in 2017, $12 in 2018, $13.50 in 2019, and $15 per hour in 2020. After 2020, all future increases in the minimum wage would be indexed to increases in the median hourly wage, as determined by the Secretary of Labor.
For workers who earn at least $30 in monthly tips, their base minimum wage would be increased from its current level of $2.13 per hour to $3.15 per hour in 2016. Each year after, the wage for tipped workers would be increased by $1.50 per hour annually until the wage reaches the federal minimum established by this bill, or directly to the level designated as the federal minimum wage.
A separate youth minimum wage would be set at $3 per hour less than the standard federal minimum wage.