H.R.2743 - Raise the Wage Act of 2025 (119th Congress)
Summary
H.R.2743, the Raise the Wage Act of 2025, aims to increase the federal minimum wage over a period of years, eventually indexing it to the median hourly wage of all employees. The bill also seeks to eliminate the separate minimum wage for tipped employees and newly hired employees under 20 years old. Additionally, it addresses wages for individuals with disabilities, phasing in fair wages and eventually sunsetting the authority to issue special certificates for subminimum wage employment.
Expected Effects
If enacted, the Raise the Wage Act of 2025 would significantly increase the minimum wage for millions of American workers. This would lead to higher earnings for low-wage workers but could also result in increased labor costs for businesses. The elimination of the tipped minimum wage and the subminimum wage for disabled workers would further alter wage structures in affected industries.
Potential Benefits
- Increased earnings for low-wage workers, potentially reducing poverty.
- Improved living standards for minimum wage earners.
- Simplified wage structures by eliminating separate minimum wages for tipped employees and young workers.
- Greater economic self-sufficiency for individuals with disabilities.
- Potential stimulus to the economy through increased consumer spending.
Potential Disadvantages
- Potential job losses due to increased labor costs for businesses.
- Increased prices for consumers as businesses pass on higher wage expenses.
- Reduced business competitiveness, especially for small businesses.
- Possible inflation due to increased wage levels.
- Disproportionate impact on industries that rely heavily on tipped labor.
Most Disadvantaged Areas:
Constitutional Alignment
The Raise the Wage Act of 2025 falls under the purview of Congress's power to regulate interstate commerce, as outlined in Article I, Section 8, Clause 3 of the Constitution (the Commerce Clause). The establishment of a federal minimum wage and the regulation of wages for specific categories of employees are considered economic regulations that affect interstate commerce. The Act does not appear to infringe upon any specific individual liberties or rights protected by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).