The Give America a Raise Act would gradually increase the federal minimum wage from the current $7.25 per hour to $20 per hour over four years, starting at $10 per hour immediately upon enactment. After reaching $20 per hour in year four, the minimum wage would increase annually based on whichever is greater: inflation (Consumer Price Index) or economic growth (Gross Domestic Product). The bill also affects tipped workers and young employees by raising their minimum wages in stages and eventually eliminating separate wage rates for these groups entirely, requiring them to receive the full federal minimum wage within six to seven years. Additionally, the legislation phases out subminimum wage rates for workers with disabilities over six years while prohibiting new employers from obtaining special certificates to pay below-minimum wages. The bill takes effect approximately three months after enactment, with the Department of Labor required to publish advance notice of all wage increases at least 60 days before they take effect.
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