Give America a Raise Act

Bill Number: H.R. 7471
Origin Chamber: House
Congress: 119th Congress, Session 2
Status: Introduced
Latest Action: 2026-02-10: Referred to the House Committee on Education and Workforce.
Last Updated: 2026-02-23T13:23:23Z

AI-Generated Summary

Purpose of the Legislation

The "Give America a Raise Act" (H.R. 7471) aims to raise the federal minimum wage for most U.S. workers in stages over several years, eliminate lower wage rates for certain groups like tipped employees, young workers, and those with disabilities, and tie future increases to economic indicators like inflation or growth. This updates the Fair Labor Standards Act (FLSA) of 1938, which sets basic labor standards including the current $7.25 hourly minimum wage (unchanged since 2009), to better support workers' earnings amid rising living costs.

Key Provisions

General Minimum Wage Increases:
Starts at $10.00 per hour on the effective date (first day of the third month after enactment).
Rises to $13.00 (1 year later), $16.50 (2 years), and $20.00 (3 years).
From 4 years onward, adjusts annually based on the higher of inflation (measured by the Consumer Price Index for Urban Consumers) or Gross Domestic Product growth; if neither increases, it stays the same; rounded to the nearest $0.05.
Tipped Employees:
Phased cash wage minimum: $6.00 (effective date), rising to $8.00 (1 year), $10.00 (2 years), $12.50 (3 years), $15.00 (4 years), $17.50 (5 years), and $20.00 (6 years), then matches the general minimum.
Employees keep all tips; employers cannot take tips to offset wages.
After 6 years (when cash wage reaches $20.00), the separate tipped wage ends, requiring full minimum wage payment.
Newly Hired Employees Under 20 Years Old:
Starts at $6.00 per hour (effective date), increases by up to $2.00 annually until matching the general minimum (likely within 4-5 years), then follows the general rate.
Subminimum youth wage ends once it reaches the full minimum.
Workers with Disabilities:
Under special certificates (allowing lower wages for sheltered workshops), minimum rises: $5.00 (effective date), $8.00 (1 year), $11.00 (2 years), $14.00 (3 years), $17.00 (4 years), $20.00 (5 years), then matches general minimum (6 years).
No new certificates issued after enactment; existing ones get transition help (e.g., technical assistance for employers and job referrals for workers).
Program sunsets (ends) after 6 years, requiring full minimum wage for all.
Notices and Enforcement:
Department of Labor (DOL) must publish wage increase notices in the Federal Register and on its website 60 days before changes.
Strengthens penalties for employers misusing tips or wages.

Significant Changes to Existing Law

Raises Baseline Wage: Replaces the FLSA's fixed $7.25 minimum with a phased increase to $20.00, then ongoing adjustments— a major update after 15 years without change.
Phases Out Subminimum Wages: Ends lower rates for tipped workers (previously $2.13 cash + tips), youth (previously $4.25 for first 90 days), and disabled workers (previously as low as 25% of minimum under certificates), promoting equal pay over time.
Adds Economic Indexing: Introduces automatic annual adjustments based on CPI or GDP, preventing wage erosion by costs (unlike current law's static rate).
Protects Tips and Adds Safeguards: Mandates tip retention by workers (not employers) and requires employer notifications; expands penalties to cover "unlawfully kept or used" wages/tips.
Limits Special Programs: Prohibits new disability wage certificates and provides transition support, shifting toward competitive employment at full wages.

Potential Impacts

On Citizens: Low-wage workers (about 1.3 million at $7.25) could see income boosts, reducing poverty and increasing spending power, but higher prices or job shifts might affect consumers and entry-level hiring.
On Government Agencies: DOL gains responsibilities for calculations, notices, and assistance programs, potentially increasing administrative costs but improving enforcement of fair pay.
On Employers and Businesses: Small businesses and industries like restaurants or retail may face higher labor costs (phased to allow adjustment), possibly leading to automation, price hikes, or reduced hours; larger firms might absorb changes more easily.
On International Relations: Minimal direct impact, though higher U.S. wages could influence trade competitiveness or labor standards discussions in global agreements.

Main Stakeholders Affected

Workers: Especially low-income, tipped (e.g., servers), young (under 20), and disabled employees, who gain higher pay and protections but may face transition challenges in some jobs.
Employers: Businesses paying minimum wage, including small enterprises, restaurants, and nonprofits with disability programs, which must adapt payrolls and potentially restructure.
Government: DOL for implementation and oversight; state/local governments if aligning with federal changes.
Advocacy Groups: Labor unions and disability rights organizations, benefiting from equity but concerned about job losses for vulnerable groups.

Notable Legal, Constitutional, or Political Implications

Legal: Strengthens FLSA enforcement by clarifying tip rights and penalties, potentially increasing lawsuits for violations; the sunset of subminimum wages could face challenges from employers reliant on special certificates, but includes transition aid to ease compliance.
Constitutional: Aligns with equal protection principles by phasing out wage disparities based on age, tips, or disability; no apparent free speech or due process issues, as it regulates commerce (a congressional power under the Commerce Clause).
Political: Likely to spark debate on economic effects—supporters see it as anti-poverty measure boosting worker dignity; opponents may argue it burdens businesses and risks inflation or unemployment. As an introduced bill (February 2026, 119th Congress), passage depends on partisan divides, with phased rollout allowing compromise.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Norcross, Donald [D-NJ-1]

Recent Actions

2026-02-10: Referred to the House Committee on Education and Workforce.
2026-02-10: Introduced in House
2026-02-10: Introduced in House

Bill Versions

Give America a Raise Act — issued 2026-02-10 — PDF (12 pages)