Is keeping up with changes to the Minimum Wage rates making your head spin? Currently, the federal minimum wage is $7.25. States and cities around the country are passing their own minimum wage laws requiring minimum wages above the federal level. Unchanged for 10 years the federal minimum wage has been stuck at $7.25 and has not seen an increased since 2009. The Raise the Wage Act of 2019 bill is in the first stage of the legislative process. It was introduced into Congress on January 16, 2019. It will typically be considered by committee next before it is possibly sent on to the House or Senate as a whole. If passed, it would gradually raise the federal minimum wage to $15 an hour by 2024. Here is how it would work:
- Raise the federal minimum wage to $8.55 this year and increase it over the next five years until it reaches $15 an hour in 2024.
- After 2024, adjust the minimum wage each year to keep pace with growth in the typical worker’s wages.
- Phase out the outdated subminimum wage for tipped workers, which has been frozen at a meager $2.13 since 1991.
- Sunset the much-criticized subminimum wages for workers with disabilities employed in sheltered workshops and for workers under age 20.1