Sec. 401. Minimum wage increases
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Section 6(a)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206(a)(1) ) is amended to read as follows: except as otherwise provided in this section, not less than— $8.55 an hour, beginning on the effective date under section 401(f) of the Marshall Plan for Coal Country Act of 2020 ; $9.85 an hour, beginning 1 year after such effective date; $11.15 an hour, beginning 2 years after such effective date; $12.45 an hour, beginning 3 years after such effective date; $13.75 an hour, beginning 4 years after such effective date; $15.00 an hour, beginning 5 years after such effective date; and beginning on the date that is 6 years after such effective date, and annually thereafter, the amount determined by the Secretary under subsection (h); .
Section 6 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206 ) is amended by adding at the end the following: Not later than each date that is 90 days before a new minimum wage rate determined under subsection (a)(1)(G) is to take effect, the Secretary shall determine the minimum wage rate to be in effect under this subsection for each period described in subsection (a)(1)(G). The wage rate determined under this subsection for a year shall be— not less than the amount in effect under subsection (a)(1) on the date of such determination; increased from such amount by the annual percentage increase, if any, in the median hourly wage of all employees as determined by the Bureau of Labor Statistics; and rounded up to the nearest multiple of $0.05.
In calculating the annual percentage increase in the median hourly wage rate of all employees for purposes of paragraph (1)(B), the Secretary, through the Bureau of Labor Statistics, shall compile data on the hourly wages of all employees to determine such a median hourly wage and compare such median hourly wage for the most recent year for which data are available with the median hourly wage determined for the preceding year. . Section 3(m)(2)(A)(i) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203(m)(2)(A)(i) ) is amended to read as follows: the cash wage rate paid such employee, which for purposes of such determination shall be not less than— for the 1-year period beginning on the effective date under section 401 of the Marshall Plan for Coal Country Act of 2020 , $3.60 an hour; for each succeeding 1-year period until the wage rate under this clause equals the wage rate in effect under section 6(a)(1) for such period, an hourly wage equal to the amount determined under this clause for the preceding year, increased by the lesser of— $1.50; or the amount necessary for the wage rate in effect under this clause to equal the wage rate in effect under section 6(a)(1) for such period, rounded up to the nearest multiple of $0.05; and for each succeeding 1-year period after the increase made pursuant to subclause (II), the minimum wage rate in effect under section 6(a)(1); and .
Section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203(m)(2)(A) ) is amended— in the second sentence of the matter following clause (ii), by striking of this subsection, and all tips received by such employee have been retained by the employee and inserting of this subsection. Any employee shall have the right to retain any tips received by such employee ; and by adding at the end the following: An employer shall inform each employee of the right and exception provided under the preceding sentence. .
Section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203(m)(2)(A) ), as amended by paragraphs
(1)and (2), is further amended by striking the sentence beginning with In determining the wage an employer is required to pay a tipped employee, and all that follows through of this subsection. and inserting The wage rate required to be paid to a tipped employee shall be the wage rate set forth in section 6(a)(1). . Subsection
(i)of section 6 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206 ), as amended by subsection (d), is further amended by striking or in accordance with subclause
(II)or
(III)of section 3(m)(2)(A)(i) . The amendments made by subparagraphs
(A)and
(B)shall take effect on the date that is one day after the date on which the hourly wage under subclause
(III)of section 3(m)(2)(A)(i) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203(m)(2)(A)(i) ), as amended by paragraph (1), takes effect. Section 6(g)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206(g)(1) ) is amended by striking a wage which is not less than $4.25 an hour. and inserting the following: a wage at a rate that is not less than— for the 1-year period beginning on the effective date under section 7 of the Marshall Plan for Coal Country Act of 2020 , $5.50 an hour; for each succeeding 1-year period until the hourly wage under this paragraph equals the hourly wage in effect under section 6(a)(1) for such period, an hourly wage equal to the amount determined under this paragraph for the preceding year, increased by the lesser of— $1.25; or the amount necessary for the wage rate in effect under this paragraph to equal the wage rate in effect under section 6(a)(1) for such period, rounded up to the nearest multiple of $0.05; and for each succeeding 1-year period after the increase made pursuant to subparagraph (B)(ii), the minimum wage rate in effect under section 6(a)(1). . Section 6(g)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206(g)(1) ), as amended by paragraph (1), shall be repealed. Subsection
(i)of section 6 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206 ), as amended by subsection (b)(3)(B), is further amended by striking or subparagraph
(B)or
(C)of subsection (g)(1), . The repeal and amendment made by subparagraphs
(A)and (B), respectively, shall take effect on the date that is one day after the date on which the wage rate under subparagraph
(C)of section 6(g)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206(g)(1) ), as amended by paragraph (1), takes effect. Section 6 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206 ), as amended by the preceding subsections, is further amended by adding at the end the following: Not later than 60 days prior to the effective date of any increase in the required wage rate determined under subsection (a)(1) or subparagraph
(B)or
(C)of subsection (g)(1), or in accordance with subclause
(II)or
(III)of section 3(m)(2)(A)(i) or section 14(c)(1)(A), the Secretary shall publish in the Federal Register and on the website of the Department of Labor a notice announcing each increase in such required wage rate. . Subparagraph
(A)of section 14(c)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 214(c)(1)(a) ) is amended to read as follows: at a rate that equals, or exceeds, for each year, the greater of— $4.25 an hour, beginning 1 year after the date the wage rate specified in section 6(a)(1)(A) takes effect; $6.40 an hour, beginning 2 years after such date; $8.55 an hour, beginning 3 years after such date; $10.70 an hour, beginning 4 years after such date; $12.85 an hour, beginning 5 years after such date; and the wage rate in effect under section 6(a)(1), on the date that is 6 years after the date the wage rate specified in section 6(a)(1)(A) takes effect; or if applicable, the wage rate in effect on the day before the date of enactment of the Marshall Plan for Coal Country Act of 2020 for the employment, under a special certificate issued under this paragraph, of the individual for whom the wage rate is being determined under this subparagraph, . Section 14(c) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 214(c) ) (as amended by subparagraph (A)) is further amended by adding at the end the following: Notwithstanding paragraph (1), the Secretary shall not issue a special certificate under this subsection to an employer that was not issued a special certificate under this subsection before the date of enactment of the Marshall Plan for Coal Country Act of 2020 . Beginning on the day after the date on which the wage rate described in paragraph (1)(A)(i)(VI) takes effect, the authority to issue special certificates under paragraph
(1)shall expire, and no special certificates issued under paragraph
(1)shall have any legal effect. Upon request, the Secretary shall provide— technical assistance and information to employers issued a special certificate under this subsection for the purposes of— transitioning the practices of such employers to comply with this subsection, as amended by the Marshall Plan for Coal Country Act of 2020 ; and ensuring continuing employment opportunities for individuals with disabilities receiving a special minimum wage rate under this subsection; and information to individuals employed at a special minimum wage rate under this subsection, which may include referrals to Federal or State entities with expertise in competitive integrated employment. . The amendments made by this paragraph shall take effect on the date of enactment of this Act. Subsection
(i)of section 6 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206 ), as amended by subsection (c)(2)(B), is further amended by striking or section 14(c)(1)(A), . The amendment made by subparagraph
(A)shall take effect on the day after the date on which the wage rate described in paragraph (1)(A)(i)(VI) of section 14(c) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 214(c) ), as amended by paragraph (1)(A), takes effect. Except as otherwise provided in this Act or the amendments made by this Act, this Act and the amendments made by this Act shall take effect on the first day of the third month that begins after the date of enactment of this Act.
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