What is the Raise the Wage Act?

On Tuesday, January 26, the Raise the Wage Act was introduced in both the House and the Senate. This bill, if signed into law, would raise the federal minimum wage, which hasn’t seen an increase since 2009. The policy was also included in President Biden’s $1.9 trillion American Rescue Plan, though it is considered one of the more controversial elements of the plan and faces opposition.

According to the House Education and Labor Committee, the Raise the Wage Act would:

• Gradually increase the federal minimum wage from $7.25, reaching $15 by 2025
• Index increases occurring after 2025 to median wage growth
• Gradually phase out the federal minimum wage for tipped workers  (which currently stands at $2.13) so it meets the $15 minimum by 2027
• Provide provisions for teen workers and workers with disabilities

Learn more about the Raise the Wage Act here.

Read the full text of the bill here.

Read the National Restaurant Association’s response to the Raise the Wage Act here.

Read the National Employment Law Project’s response to the Raise the Wage Act here.

Photo: vinnstock / iStock / Getty Images Plus / Getty Images