If enacted, employers would follow listed future minimum wage rates, with limited rules for counting tips and paying some young new workers a training wage.
The text lists minimum wages of $11 an hour in 2027, $13 in 2028, and $15 in 2029. Starting in 2030, the rate would rise each year with prices.
For tipped workers, employers could count tips toward the minimum wage only if they pay a cash wage of at least 60% of that rate and follow rules for informing workers and handling tips.
Employers could pay a worker under 20 a training wage for the first 60 days, at no less than the federal minimum wage. They could not use it to displace existing workers.
Employers would have to pay at least the listed minimum wage. The schedule covers employees, subject to exceptions elsewhere in the Minimum Wage Act. The listed rates begin January 1 of each year. Annual price adjustments would begin January 1, 2030.
Employers could count some tips toward the minimum wage owed to tipped employees. This rule concerns employees who receive tips and the hourly minimum wage their employers must pay. The employer-paid cash wage must be at least 60% of the minimum wage. Tips counted toward the remaining amount cannot exceed the tips the employee actually receives. Employers must tell workers about this rule. Workers must keep their tips, though customary tip sharing among workers who regularly receive tips is allowed.
Employers could pay a training wage during an eligible new employee’s first 60 days. This option applies when an employer initially hires an employee under age 20. The employer must tell the employee the training wage amount and that the full minimum wage, or a higher wage, follows the training period. Employers may not reduce existing workers’ hours, wages, or benefits, or otherwise displace them, to hire people at the training wage. The 60-day period starts when the employee is initially hired.
No hearings or votes scheduled.