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By 2020, this bill aims raise the federal minimum wage to $12 an hour — gradually. Starting either on January 1, 2016, or three months after the bill is passed (whichever is later), the federal minimum wage would go up to $8 an hour. Each year, it would go up a dollar an hour, until it reached $12.

The federal minimum wage since July 2009 has been $7.25 an hour — though some states have higher minimum wages and worker protections that employers in those states have to comply with.

After the federal minimum wage reaches $12 an hour under this bill, the Secretary of Labor would have to set the minimum wage, as calculated by data from the Bureau of Labor Statistics. The new minimum wage would be indexed to the median wage, and couldn't be set less than the previous minimum wages.

Perhaps even more notably, this bill would phase out tipped minimum wages. Set at $2.13 an hour at the federal level, tipped minimum wages assume that if you earn tips on the job, you'll make up the regular minimum wage difference. This bill would raise the tipped minimum to $3.15 at the same time as the regular wage goes up. That wage would then be raised by either $1.05 or however much it had to go up by the equal regular minimum wage, whichever was lesser.

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Is it Time to (Gradually) Raise the Minimum Wage to $12?