While legislation is required to raise the national minimum wage, Biden can increase the wage for federal workers via executive order. This includes student workers, those under the age of 20 and workers with a physical or intellectual disability. Workers who receive at least $30 in tips a month qualify for the 'tipped wage,' which is split between a $2.13 minimum cash wage and a $5.13 maximum tip credit with both combining to $7.25.Īccording to the Fair Labor Standards Act, certain groups qualify for a wage below the minimum, which is currently $4.25. How much would the minimum wage increase annually if the plan passed?īiden's plan called for an increase to the federal minimum wage between now and 2025, and to end the ' tipped minimum wage' (for people whose income is based largely on tips, like restaurant servers) and subminimum wage for people with disabilities. This bill would increase the federal minimum wage to $15 by 2027. There's also the Raise the Wage Act of 2021 that was introduced by House and Senate Democrats at the end of January. Senator Hawley Press Office February 24, 2021 His plan would provide a bonus to every worker making below the median wage. NEW - Senator Josh Hawley is announcing new legislation that will give blue-collar workers a pay raise. In the example provided, a person making $12 an hour would receive a $2.25 per hour credit that would equal to $4,680 a year and would be paid out in four payments of $1,170. With his Blue-Collar Bonus Tax Credit, workers would receive quarterly payments from the IRS if they make less than $16.50 an hour. Josh Hawley, a Republican from Missouri, also plans to introduce legislation to increase wages, but it has a few more provisions. The legislation would also raise civil and criminal penalties for employers who hired unauthorized workers and require employees' eligibility to work to be confirmed with E-Verify. Then after every two years, pay would increase to match the rate of inflation. The Higher Wages for American Workers Act would gradually increase hourly pay from $7.25 to $10 over the course of five years. Tom Cotton, from Arkansas, proposed their own minimum wage bill on Feb. Other lawmakers have developed their own plans to increase the minimum wage in the past month. What other options are available for increasing the minimum wage? There may be more than one path forward to raising the minimum wage. It's unlikely there will be any additional action in the Senate over this issue and considering the urgency of Congress to pass the bill, the House might not make any changes when it votes on the bill from the Senate. A vote on Friday to increase the minimum wage didn't pass by a vote of 42-58, with eight Democrats joining the Republicans. 26, which would begin annual increases until 2025.īut although the $1.9 trillion stimulus plan passed the House with the wage provision, it failed to get through the Senate. House and Senate Democrats introduced the Raise the Wage Act of 2021 on Jan. Increasing the federal minimum wage to $15 an hour has been on Biden's agenda since Day 1. What's happening with the $15 federal minimum wage increase?

$15 minimum wage increase