Give America a Raise Act
- Bill Number
- S. 3780
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2026-02-04: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Last Updated
- 2026-02-26T15:39:29Z
AI-Generated Summary
Purpose of the Legislation
The "Give America a Raise Act" (S. 3780) aims to raise the federal minimum wage for most workers in the United States through a series of phased increases, while also adjusting wages for specific groups like tipped employees, young workers, and individuals with disabilities. It seeks to ensure wages keep pace with inflation and economic growth, promote fair pay, and eventually eliminate lower "subminimum" wage categories under existing law.
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 after 1 year, $16.50 after 2 years, and $20.00 after 3 years.
- After 4 years, annual adjustments based on the higher of the Consumer Price Index (CPI, a measure of inflation for urban consumers) or Gross Domestic Product (GDP, a measure of overall economic output) increase from the previous year. If neither increases, the wage stays the same; amounts are rounded up to the nearest $0.05.
- Tipped Employees (workers who receive tips, like servers):
- Phased cash wage (base pay before tips) starts at $6.00 per hour on the effective date, rising annually to $8.00, $10.00, $12.50, $15.00, $17.50, and $20.00 over 6 years.
- After 6 years, matches the general minimum wage.
- Employees keep all tips; employers cannot take any tips (previously allowed in some cases).
- Employers must inform workers of their right to keep tips.
- Separate tipped minimum wage ends 1 day after the $20.00 cash wage takes effect.
- Newly Hired Employees Under 20 Years Old:
- Starts at $6.00 per hour on the effective date, increasing by up to $2.00 annually until it matches the general minimum wage.
- Once it matches, it follows the general minimum wage.
- Separate youth minimum wage ends 1 day after it fully aligns with the general rate.
- Workers with Disabilities (under special certificates allowing lower wages):
- Phased minimum starts at $5.00 per hour on the effective date, rising to $8.00, $11.00, $14.00, $17.00, and $20.00 over 5 years.
- After 5 years, matches the general minimum wage.
- No new special certificates issued after enactment; existing ones get transition help from the Department of Labor (DOL), including technical assistance for employers and job referrals for workers.
- Program sunsets (ends) 1 day after the $20.00 rate takes effect, eliminating subminimum wages for this group.
- Enforcement and Notices:
- DOL must publish notices of wage increases in the Federal Register and on its website at least 60 days before they take effect.
- Penalties under the Fair Labor Standards Act (FLSA) now cover wages or tips that are "unlawfully kept or used" (expanded from just "kept").
Significant Changes to Existing Law
This bill amends the Fair Labor Standards Act of 1938 (FLSA), which currently sets the general federal minimum wage at $7.25 per hour (unchanged since 2009):
- Introduces the first automatic annual adjustments tied to economic indicators (CPI or GDP), preventing wage erosion by inflation.
- Phases out subminimum wages for tipped workers, youth, and disabled workers, which previously allowed rates as low as $2.13 (tipped), $4.25 (youth), or below minimum (disabilities).
- Strengthens tip protections by banning employer retention of tips and requiring notification.
- Prohibits new subminimum wage certificates for disabled workers and provides a full phase-out, shifting toward "competitive integrated employment" (jobs at standard wages in mainstream settings).
Potential Impacts
- On Citizens: Low-wage workers (about 1.3 million currently at $7.25) would see income boosts, potentially reducing poverty and increasing consumer spending. However, it could lead to higher prices or job shifts in low-margin industries like retail and food service. Tipped and young workers gain clearer protections and fairer pay over time.
- On Government Agencies: The DOL gains responsibilities for annual wage calculations, publishing notices, and providing transition assistance, which may require additional resources or staff. Enforcement could increase due to expanded penalties.
- On International Relations: No direct impacts; this is a domestic labor policy focused on U.S. workers and economy.
- Broader Economic Effects: Could stimulate economic growth through higher wages but might raise business costs, especially for small employers, potentially affecting hiring or automation.
Main Stakeholders Affected
- Workers: Primarily low-wage earners, tipped employees (e.g., in hospitality), young entry-level workers, and individuals with disabilities in sheltered workshops—potentially benefiting millions by raising pay and job equity.
- Employers: Small businesses, restaurants, and nonprofits employing these groups may face higher labor costs and compliance needs, though transition periods allow adjustment.
- Government: U.S. Department of Labor (DOL) for implementation and oversight; state governments if their minimum wages are lower (federal law sets a floor).
- Advocacy Groups: Labor unions and disability rights organizations may support the fair wage push, while business associations could oppose due to cost concerns.
Notable Legal, Constitutional, or Political Implications
- Legal: Enhances FLSA enforcement by broadening penalties and mandating notices, reducing loopholes for subminimum wages. The phase-out of special certificates for disabled workers could face lawsuits from employers reliant on them, but includes transition aid to mitigate disruptions.
- Constitutional: Aligns with Congress's established authority under the Commerce Clause to regulate wages (upheld in cases like United States v. Darby, 1941). No apparent free speech, due process, or equal protection issues, as it promotes uniform treatment over time.
- Political: Represents a progressive reform to address wage stagnation, likely sparking debates on economic inequality versus business burdens. If passed, it could set a precedent for indexed wages, influencing future labor policies amid partisan divides on minimum wage hikes.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-02-04: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 2026-02-04: Introduced in Senate
Bill Versions
- Give America a Raise Act — issued 2026-02-04 — PDF (12 pages)