Sec. 2101. Raising the Federal minimum wage
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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— $9.50 an hour, beginning on the effective date under section 2101(e) of the American Rescue Plan Act of 2021; $11.00 an hour, beginning 1 year after such effective date; $12.50 an hour, beginning 2 years after such effective date; $14.00 an hour, beginning 3 years after such effective date; $15.00 an hour, beginning 4 years after such effective date; and beginning on the date that is 5 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 determined under subsection (a)(1)(F) is to take effect, the Secretary shall determine the minimum wage to be in effect under this subsection for each period described in subsection (a)(1)(F). The wage 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 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 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 2101(e) of the American Rescue Plan Act of 2021, $4.95 an hour; for each succeeding 1-year period until the hourly wage under this clause equals the wage 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— $2.00; or the amount necessary for the wage in effect under this clause to equal the wage 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 all increases are made pursuant to subclause (II), the minimum wage 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) ), as amended by paragraph (1), 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 required to be paid to a tipped employee shall be the wage set forth in section 6(a)(1). . The amendments made by subparagraph
(A)shall take effect on the date that is 1 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 16 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 216 ) is amended— in the third sentence of subsection (b), by inserting or used after kept ; and in the second sentence of subsection (e)(2), by inserting or used after kept . 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 2101(e) of the American Rescue Plan Act of 2021, $6.00 an hour; for each succeeding 1-year period until the hourly wage under this paragraph equals the 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— $1.75; or the amount necessary for the wage in effect under this paragraph to equal the wage 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 all increases are made pursuant to subparagraph (B), the minimum wage in effect under section 6(a)(1). . Section 6(g) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206(g) ), as amended by paragraph (1), shall be repealed. The repeal made by subparagraph
(A)shall take effect on the date that is 1 day after the date on which the hourly wage 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 14(c) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 214(c) ) is 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 American Rescue Plan Act of 2021. . The amendment made by subparagraph
(A)shall take effect on the date of enactment of this Act. Subparagraph
(A)of section 14(c)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 214(c)(1) ) is amended to read as follows: at a rate that equals or exceeds, for each year, the greater of— $5.00 an hour, beginning on the effective date under section 2101(e) of the American Rescue Plan Act of 2021; $7.50 an hour, beginning 1 year after such effective date; $10.00 an hour, beginning 2 years after such effective date; $12.50 an hour, beginning 3 years after such effective date; $15.00 an hour, beginning 4 years after such effective date; and the wage rate in effect under section 6(a)(1), beginning 5 years after such effective date; or if applicable, the wage rate in effect on the day before the date of enactment of the American Rescue Plan Act of 2021 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) ) is further amended by adding at the end the following: 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. . Except as otherwise provided in this section, or the amendments made by this section, this section and the amendments made by this section shall take effect— subject to paragraph (2), on the first day of the third month that begins after the date of the enactment of this Act; and with respect to the Commonwealth of the Northern Mariana Islands, on the date that is 18 months after the effective date described in paragraph (1).
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