The Raise the Wage Act of 2023 would gradually increase the federal minimum wage from the current $7.25 per hour to $17.00 per hour over six years, with annual increases starting at $9.50 per hour. After reaching $17.00 per hour, the minimum wage would automatically adjust annually based on increases in the median hourly wage of all workers, rounded to the nearest five cents. The bill also phases out the separate lower minimum wage for tipped employees and young workers under 20, bringing both groups to the standard minimum wage over time. For workers with disabilities who currently can be paid below minimum wage under special certificates, the bill gradually raises their minimum wage to match the standard minimum wage within five years and prohibits new special certificates from being issued while providing transition assistance to affected employers and workers. The changes would take effect approximately three months after the bill becomes law.
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