# The Raise the Wage Act of 2025: What It Actually Means

This bill would gradually increase the federal minimum wage from its current $7.25 per hour to $17.00 per hour over six years, then tie future increases to how much typical workers' wages grow each year. Right now, the federal minimum wage hasn't changed since 2009, so this would be a significant jump. The increases would happen in steps: $9.50 after the first year, $11.00 after two years, $12.50 after three years, $14.00 after four years, $15.50 after five years, and finally $17.00 after six years. After that, the minimum wage would automatically adjust annually based on changes in the median wage that all workers earn, rounded up to the nearest nickel.

The bill also addresses three groups that currently have lower minimum wages. Tipped workers (like servers and bartenders) would see their base wage—the amount employers must pay before tips—rise from the current $2.13 per hour to $6.00 initially, then gradually increase to $17.00 over six years. After that, tipped workers would receive the full minimum wage like everyone else, though they could still keep all their tips. Young workers under 20 who are newly hired would also see their minimum wage increase gradually from $6.00 to match the regular minimum wage. Workers with disabilities who have special certificates allowing lower wages would see their minimum wage rise from $5.00 to eventually match the regular minimum wage as well. Importantly, the bill would stop issuing new special certificates to employers, meaning only existing employers could continue using this lower wage rate during the transition period.

The bill also strengthens protections for tipped workers by clarifying that they have the right to keep all tips they receive, and employers must inform workers of this right. Additionally, employers would face penalties if they try to keep or use tips that belong to workers. The Department of Labor would have to announce any wage increases at least 60 days before they take effect so employers and workers have time to prepare.