Pay Workers a Living Wage Act

Pay Workers a Living Wage Act

This bill amends the Fair Labor Standards Act of 1938 (FLSA) to increase the federal minimum wage for employees to: (1) $9.00 an hour on January 1, 2016, or, if later, on the first day of the third month after enactment of this Act; (2) $10.50 an hour after one year; (3) $12.00 an hour after two years; (4) $13.50 an hour after three years; (5) $15.00 an hour after four years; and (6) the amount the Secretary of Labor determines (based on increases in the median hourly wage of all employees) after five years, and annually thereafter.

The federal minimum wage for tipped employees shall increase to $3.15 an hour for one year on January 1, 2016, or the first day of the third month after enactment of this Act, whichever is later. Subsequent annual adjustments of the wage increase, according to a specified formula, shall ensure that it remains equal to the wage in effect under FLSA for other employees.

Employers must notify their employees of the right to retain any received tips.

The separate minimum wage requirements for tipped employees shall end, effective one day after the hourly wage established for them under this Act takes effect.

Any employer may pay any newly hired employee who is less than 20 years old, during the first 90 consecutive days after that employee's initial employment, a wage at a rate that is not less than the rate prescribed for employees who are engaged in commerce, reduced by $3.00 per hour.

The Secretary must publish the amount of any adjusted required wage in the Federal Register and on the Department of Labor's website 60 days before it takes effect.