[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3662 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 3662
To amend the Fair Labor Standards Act of 1938 to provide for an
increase to the minimum wage, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 29, 2025
Ms. Titus introduced the following bill; which was referred to the
Committee on Education and Workforce, and in addition to the Committee
on Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Fair Labor Standards Act of 1938 to provide for an
increase to the minimum wage, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) This Act may be cited as the ``Labor Income Fairness and
Transparency Act'' or ``LIFT Act''.
SEC. 2. MINIMUM WAGE INCREASE.
(a) In General.--Section 6(a)(1) of the Fair Labor Standards Act of
1938 is amended to read as follows:
``(1) except as otherwise provided in this section, not less than--
``(A) $10.25 an hour, beginning on the effective date
described in section 2(c) the Labor Income Fairness and
Transparency Act;
``(B) $13.75 an hour, beginning 12 months after such
effective date;
``(C) $17.00 an hour, beginning 24 months after such
effective date; and
``(D) the amount determined under subsection (h) for the 1-
year period beginning 36 months after such effective date, and
for each 1-year period thereafter;''.
(b) Minimum Wage Determination Based on Increases in the Median
Hourly Wage of All Employees.--Section 6 of the Fair Labor Standards
Act of 1938 is amended by adding at the end the following:
``(h)(1) Not later than 90 days prior to the date on which the
minimum wage under subsection (a)(1)(D) shall take effect for a 1-year
period, the Secretary shall determine the minimum wage for such 1-year
period. Such minimum wage for such period shall be calculated by
multiplying--
``(A) the minimum wage for the 1-year period preceding the
covered 1-year period, by
``(B) the ratio obtained by dividing--
``(i) the median hourly wage of all employees for
the covered 1-year period, by
``(ii) the median hourly wage of all employees for
the 1-year period preceding the covered 1-year period.
``(2)(A) In this subsection, the term `median hourly wage' means,
when used with respect to a 1-year period, the median hourly wage for
the most recent four-quarter period for which data are available that
precedes such 1-year period.
``(B) In this subsection, the term `covered 1-year period' means
the 1-year period for which the minimum wage is being determined under
this subsection.
``(3) Not later than 90 days after the last day of each calendar
quarter, the Secretary, through the Bureau of Labor Statistics, shall
determine the median hourly wage of all employees for such calendar
quarter.
``(4) The minimum wage for a covered 1-year period shall not be
less than the minimum wage for the 1-year period preceding the covered
1-year period.
``(5) In setting the minimum wage for any covered 1-year period,
such minimum wage shall be rounded up to the nearest multiple of $0.05
if the amount calculated under this subsection is not a multiple of
$0.05.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date that is 1 year after the date of enactment of this
Act.
SEC. 3. ELIMINATION OF SUBMINIMUM WAGES.
(a) Youth Wages.--Section 6(g) of the Fair Labor Standards Act of
1938 (28 U.S.C. 206(g)) is amended to read as follows:
``(g) In lieu of the rate prescribed by subsection (a)(1), any
employer may pay any employee of such employer, during the first 90
consecutive calendar days after such employee is initially employed by
such employer, a wage which is not less than--
``(1) $8.50 an hour, beginning on the date described in
subsection (a)(1)(A);
``(2) $12.75 an hour, beginning 12 months after such date;
``(3) $17.00 an hour, beginning 24 months after such date;
and
``(4) the amount in effect under subsection (a)(1),
beginning 36 months after such date.''.
(b) Student-Learner Program.--Section 14(a) of the Fair Labor
Standards Act of 1938 (28 U.S.C. 214(a)) is amended--
(1) by striking ``The Secretary'' and inserting ``(1)
Subject to paragraph (2), the Secretary''; and
(2) by adding at the end the following:
``(2) Beginning on the date described in subsection (a)(1)(A) of
section 6, the Secretary may not provide for a wage under paragraph (1)
that is lower than--
``(A) $9.29 an hour, beginning on such date;
``(B) $13.14 an hour, beginning 12 months after such date;
``(C) $17.00 an hour, beginning 24 months after such date;
and
``(D) the amount in effect under section 6(a)(1), beginning
36 months after such date.''.
(c) Full-Time Student Program.--Section 14(b) of the Fair Labor
Standards Act (28 U.S.C. 214(b)) is amended by adding at the end the
following:
``(5) Beginning on the date described in subsection (a)(1)(A) of
section 6, paragraphs (1)(A), (2), and (3) shall be applied by
substituting for the dollar amounts in such paragraphs a dollar amount
equal to--
``(A) $9.77, beginning on such date;
``(B) $13.38, beginning 12 months after such date;
``(C) $17.00, beginning 24 months after such date; and
``(D) the amount in effect under subsection (a)(1) of
section 6, beginning 36 months after such date.''.
(d) Special Certificate Wages.--
(1) Incremental increase.--Section 14(c)(1)(A) of the Fair
Labor Standards Act (28 U.S.C. 214(c)(1)(A)) is amended to read
as follows:
``(A) not lower than--
``(i) $9.77 an hour, beginning on the date
described in subsection (a)(1)(A) of section 6;
``(ii) $13.38 an hour, beginning 12 months after
such date;
``(iii) $17.00 an hour, beginning 24 months after
such date; and
``(iv) the amount in effect under subsection (a)(1)
of section 6, beginning 36 months after such date.''.
(2) Issuance of special certificates.--Section 14(c) of the
Fair Labor Standards Act (28 U.S.C. 214(c)) is further amended
by adding at the end the following:
``(6) Beginning on the date described in paragraph (1)(A)(iv), the
Secretary may not issue a special certificate under this subsection.''.
(e) Effective Date.--The amendments made by this section shall take
effect on the date that is 1 year after the date of enactment of this
Act.
SEC. 4. TIPPED EMPLOYEES.
(a) Section 3(m)(2) of the Fair Labor Standards Act of 1938 (29
U.S.C. 203(m)(2)) is amended to read as follows:
``(2)(A) In determining the wage an employer is required to pay a
tipped employee, the amount paid such employee by the employee's
employer shall be an amount equal to--
``(i) $7.09 an hour, beginning on the date described in subsection
(a)(1)(A) of section 6;
``(ii) $12.05 an hour, beginning 12 months after such date;
``(iii) $17.00 an hour, beginning 24 months after such date; and
``(iv) the amount in effect under section (a)(1) of section 6,
beginning 36 months after such date.
Any employee shall have the right to retain any tips received by such
employee, except that this subsection shall not be construed to
prohibit the pooling of tips among employees who customarily and
regularly receive tips. An employer shall provide to the employee a
notice of the tips received by such employee for each day that such
employee works.
``(B) An employer may not keep tips received by its employees for
any purposes, including--
``(i) allowing managers or supervisors to keep any portion
of employees' tips, regardless of whether or not the employer
takes a tip credit; or
``(ii) recovering the cost to the employer of processing
tips.''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date that is 1 year after the date of enactment of this
Act.
SEC. 5. CIVIL PENALTIES.
(a) In General.--Section 16(e)(2) of the Fair Labor Standards Act
(29 U.S.C. 214(e)(2)) is amended by striking ``$1,100'' each place it
appears and inserting ``$2,200''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date that is 120 days after the date of enactment of this
Act.
SEC. 6. PROHIBITION ON REDUCTION IN FORCE OF WAGE AND HOUR DIVISION
INVESTIGATORS.
Notwithstanding any other provision of law, any investigator within
the Wage and Hour Division of the Department of Labor may not be
removed under a reduction in force.
SEC. 7. ASSISTANCE TO STATES.
(a) In General.--The Secretary of Labor is authorized to make
grants to assist eligible State, local, and Tribal governments to--
(1) develop and enforce wage laws and regulations; and
(2) improve compliance with wage laws and regulations,
including through the development and execution of training and
educational workshops.
(b) Application.--To be eligible to receive a grant under this
section, a State or local government shall submit an application at
such time, in such manner, and containing such information and
assurances as the Secretary may require.
SEC. 8. NATIONAL ADVISORY COMMITTEE ON THE HOSPITALITY INDUSTRY.
(a) Establishment.--The Secretary of Labor shall establish a
commission to be known as the National Advisory Committee on the
Hospitality Industry (in this Act referred to as the ``Commission'').
(b) Duties of Commission.--The duties of the Commission shall be to
advise the Secretary of Labor on all matters related to workers in the
hospitality industry, including--
(1) the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et
seq.);
(2) tipped workers;
(3) worker safety;
(4) apprenticeships;
(5) regulation of independent contractors;
(6) visa programs; and
(7) such other matters as the Commission determines
relevant.
(c) Membership.--The Commission shall be composed of 15 members,
appointed by the Secretary, as follows:
(1) 5 representatives of labor organizations, including a
representative of each of the sectors within the hospitality
industry that follow:
(A) Hotels and lodging.
(B) Food and beverage service, including
restaurants.
(C) Gaming and other forms of entertainment.
(2) 5 representatives of employers, including a
representative of each of the sectors within the hospitality
industry that follow:
(A) Hotels and lodging.
(B) Food and beverage service, including
restaurants.
(C) Gaming and other forms of entertainment.
(3) 3 members of the public with expertise in issues facing
workers in the hospitality industry.
(4) 2 representatives of State, local, or Tribal government
agencies related to tourism or wage enforcement.
(d) Meetings.--The Commission shall meet not less than twice
annually.
(e) Staff.--The Secretary shall furnish to the Committee an
executive secretary and such secretarial, clerical, and other services
as are deemed necessary by the Sectetary to the conduct of the
Committee's duties.
SEC. 9. COVID-ERA EITC IMPROVEMENTS RESTORED AND MADE PERMANENT.
(a) Decrease in Minimum Age for Credit; Elimination of Maximum Age
for Credit.--Section 32(c)(1) of the Internal Revenue Code of 1986 is
amended--
(1) in paragraph (A)(ii)(II), by striking ``age 25 but not
attained age 65'' and inserting ``the applicable minimum age'',
and
(2) by adding at the end the following new subparagraphs:
``(F) Applicable minimum age.--For purposes of this
paragraph, the term `applicable minimum age' means--
``(i) except as otherwise provided in this
paragraph, age 19,
``(ii) in the case of a specified student
(other than a qualified former foster youth or
a qualified homeless youth), age 24, and
``(iii) in the case of a qualified former
foster youth or a qualified homeless youth, age
18.
``(G) Specified student.--For purposes of this
paragraph, the term `specified student' means, with
respect to any taxable year, an individual who is an
eligible student (as defined in section 25A(b)(3))
during at least 5 calendar months during the taxable
year.
``(H) Qualified former foster youth.--For purposes
of this paragraph, the term `qualified former foster
youth' means an individual who--
``(i) on or after the date that such
individual attained age 14, was in foster care
provided under the supervision or
administration of an entity administering (or
eligible to administer) a plan under part B or
part E of title IV of the Social Security Act
(without regard to whether Federal assistance
was provided with respect to such child under
such part E), and
``(ii) provides (in such manner as the
Secretary may provide) consent for entities
which administer a plan under part B or part E
of title IV of the Social Security Act to
disclose to the Secretary information related
to the status of such individual as a qualified
former foster youth.
``(I) Qualified homeless youth.--For purposes of
this paragraph, the term `qualified homeless youth'
means, with respect to any taxable year, an individual
who certifies, in a manner as provided by the
Secretary, that such individual is either an
unaccompanied youth who is a homeless child or youth,
or is unaccompanied, at risk of homelessness, and self-
supporting.''.
(b) Increase in Credit and Phaseout Percentages.--The table
contained in section 32(b)(1) of such Code is amended by striking
``7.65'' and inserting ``15.3'' each place it appears.
(c) Increase in Earned Income and Phaseout Amounts.--
(1) In general.--The table contained in section 32(b)(2)(A)
of such Code is amended--
(A) by striking ``$4,220'' and inserting
``$9,820'', and
(B) by striking ``$5,280'' and inserting
``$11,610''.
(2) Inflation adjustment.--Section 32(j)(1)(B)(i) of such
Code is amended by striking ``calendar year 1995'' and
inserting ``calendar year 2020''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 10. DEFINITIONS.
In this Act:
(1) State.--The term ``State'' has the meaning given such
term in section 3(c) of the Fair Labor Standards Act of 1938
(29 U.S.C. 3(c)).
(2) Tribal government.--The term ``Tribal government''
means the government of an Indian Tribe, as such term is
defined in section 4(e) of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5304(e)).
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