By Payroll and Entitlements Editorial Staff
The House passed the Raise the Wage Act (H.R. 582) on July 17, 2019. The bill would increase the federal minimum wage over a six-year period until it reaches $15 an hour. Specifically, in the first year of the effective date, the minimum wage would increase by $1.30 from $7.25 to $8.55 per hour, and it would then rise every year thereafter in increments of $1.30 for four years, and in the fifth year by $1.25, to reach $15.00. Future increases would be indexed to median wage growth. The bill would also phase out the subminimum wage for tipped employees, repeal the rarely used subminimum wage for youth workers, and end subminimum wage certificates for individuals with disabilities. The President has threatened a veto and it is unlikely to be taken up by the Senate this year.
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