119-hr3662

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3662 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 3662

 To amend the Fair Labor Standards Act of 1938 to provide for an 
 increase to the minimum wage, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 May 29, 2025

 Ms. Titus introduced the following bill; which was referred to the 
Committee on Education and Workforce, and in addition to the Committee 
 on Ways and Means, for a period to be subsequently determined by the 
 Speaker, in each case for consideration of such provisions as fall 
 within the jurisdiction of the committee concerned

_______________________________________________________________________

 A BILL

 To amend the Fair Labor Standards Act of 1938 to provide for an 
 increase to the minimum wage, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    (a) This Act may be cited as the ``Labor Income Fairness and 
Transparency Act'' or ``LIFT Act''.

SEC. 2. MINIMUM WAGE INCREASE.

    (a) In General.--

Section 6

    (a)

    (1) of the Fair Labor Standards Act of 
1938 is amended to read as follows:
 ``

    (1) except as otherwise provided in this section, not less than--
 ``
        (A) $10.25 an hour, beginning on the effective date 
 described in 

section 2
            (c) the Labor Income Fairness and 
 Transparency Act;
 ``
        (B) $13.75 an hour, beginning 12 months after such 
 effective date;
 ``
            (C) $17.00 an hour, beginning 24 months after such 
 effective date; and
 ``
            (D) the amount determined under subsection

    (h) for the 1-
 year period beginning 36 months after such effective date, and 
 for each 1-year period thereafter;''.

    (b) Minimum Wage Determination Based on Increases in the Median 
Hourly Wage of All Employees.--

Section 6 of the Fair Labor Standards 
Act of 1938 is amended by adding at the end the following:
 ``

    (h)

    (1) Not later than 90 days prior to the date on which the 
minimum wage under subsection

    (a)

    (1)
            (D) shall take effect for a 1-year 
period, the Secretary shall determine the minimum wage for such 1-year 
period. Such minimum wage for such period shall be calculated by 
multiplying--
 ``
        (A) the minimum wage for the 1-year period preceding the 
 covered 1-year period, by
 ``
        (B) the ratio obtained by dividing--
 ``
            (i) the median hourly wage of all employees for 
 the covered 1-year period, by
 ``
            (ii) the median hourly wage of all employees for 
 the 1-year period preceding the covered 1-year period.
 ``

    (2)
        (A) In this subsection, the term `median hourly wage' means, 
when used with respect to a 1-year period, the median hourly wage for 
the most recent four-quarter period for which data are available that 
precedes such 1-year period.
 ``
        (B) In this subsection, the term `covered 1-year period' means 
the 1-year period for which the minimum wage is being determined under 
this subsection.
 ``

    (3) Not later than 90 days after the last day of each calendar 
quarter, the Secretary, through the Bureau of Labor Statistics, shall 
determine the median hourly wage of all employees for such calendar 
quarter.
 ``

    (4) The minimum wage for a covered 1-year period shall not be 
less than the minimum wage for the 1-year period preceding the covered 
1-year period.
 ``

    (5) In setting the minimum wage for any covered 1-year period, 
such minimum wage shall be rounded up to the nearest multiple of $0.05 
if the amount calculated under this subsection is not a multiple of 
$0.05.''.
            (c) Effective Date.--The amendments made by this section shall take 
effect on the date that is 1 year after the date of enactment of this 
Act.

SEC. 3. ELIMINATION OF SUBMINIMUM WAGES.

    (a) Youth Wages.--

Section 6

    (g) of the Fair Labor Standards Act of 
1938 (28 U.S.C. 206

    (g) ) is amended to read as follows:
 ``

    (g) In lieu of the rate prescribed by subsection

    (a)

    (1) , any 
employer may pay any employee of such employer, during the first 90 
consecutive calendar days after such employee is initially employed by 
such employer, a wage which is not less than--
 ``

    (1) $8.50 an hour, beginning on the date described in 
 subsection

    (a)

    (1)
        (A) ;
 ``

    (2) $12.75 an hour, beginning 12 months after such date;
 ``

    (3) $17.00 an hour, beginning 24 months after such date; 
 and
 ``

    (4) the amount in effect under subsection

    (a)

    (1) , 
 beginning 36 months after such date.''.

    (b) Student-Learner Program.--

Section 14

    (a) of the Fair Labor 
Standards Act of 1938 (28 U.S.C. 214

    (a) ) is amended--

    (1) by striking ``The Secretary'' and inserting ``

    (1) Subject to paragraph

    (2) , the Secretary''; and

    (2) by adding at the end the following:
 ``

    (2) Beginning on the date described in subsection

    (a)

    (1)
        (A) of 

section 6, the Secretary may not provide for a wage under paragraph

    (1) that is lower than--
 ``
        (A) $9.29 an hour, beginning on such date;
 ``
        (B) $13.14 an hour, beginning 12 months after such date;
 ``
            (C) $17.00 an hour, beginning 24 months after such date; 
 and
 ``
            (D) the amount in effect under 

section 6

    (a)

    (1) , beginning 
 36 months after such date.''.
            (c) Full-Time Student Program.--

Section 14

    (b) of the Fair Labor 
Standards Act (28 U.S.C. 214

    (b) ) is amended by adding at the end the 
following:
 ``

    (5) Beginning on the date described in subsection

    (a)

    (1)
        (A) of 

section 6, paragraphs

    (1)
        (A) ,

    (2) , and

    (3) shall be applied by 
substituting for the dollar amounts in such paragraphs a dollar amount 
equal to--
 ``
        (A) $9.77, beginning on such date;
 ``
        (B) $13.38, beginning 12 months after such date;
 ``
            (C) $17.00, beginning 24 months after such date; and
 ``
            (D) the amount in effect under subsection

    (a)

    (1) of 
 

section 6, beginning 36 months after such date.''.
            (d) Special Certificate Wages.--

    (1) Incremental increase.--

Section 14
            (c) (1)
        (A) of the Fair 
 Labor Standards Act (28 U.S.C. 214
            (c) (1)
        (A) ) is amended to read 
 as follows:
 ``
        (A) not lower than--
 ``
            (i) $9.77 an hour, beginning on the date 
 described in subsection

    (a)

    (1)
        (A) of 

section 6;
 ``
            (ii) $13.38 an hour, beginning 12 months after 
 such date;
 ``
            (iii) $17.00 an hour, beginning 24 months after 
 such date; and
 ``
            (iv) the amount in effect under subsection

    (a)

    (1) of 

section 6, beginning 36 months after such date.''.

    (2) Issuance of special certificates.--

Section 14
            (c) of the 
 Fair Labor Standards Act (28 U.S.C. 214
            (c) ) is further amended 
 by adding at the end the following:
 ``

    (6) Beginning on the date described in paragraph

    (1)
        (A)
            (iv) , the 
Secretary may not issue a special certificate under this subsection.''.

    (e) Effective Date.--The amendments made by this section shall take 
effect on the date that is 1 year after the date of enactment of this 
Act.

SEC. 4. TIPPED EMPLOYEES.

    (a) Section 3
            (m) (2) of the Fair Labor Standards Act of 1938 (29 
U.S.C. 203
            (m) (2) ) is amended to read as follows:
 ``

    (2)
        (A) In determining the wage an employer is required to pay a 
tipped employee, the amount paid such employee by the employee's 
employer shall be an amount equal to--
 ``
            (i) $7.09 an hour, beginning on the date described in subsection

    (a)

    (1)
        (A) of 

section 6;
 ``
            (ii) $12.05 an hour, beginning 12 months after such date;
 ``
            (iii) $17.00 an hour, beginning 24 months after such date; and
 ``
            (iv) the amount in effect under section

    (a)

    (1) of 

section 6, 
beginning 36 months after such date.
Any employee shall have the right to retain any tips received by such 
employee, except that this subsection shall not be construed to 
prohibit the pooling of tips among employees who customarily and 
regularly receive tips. An employer shall provide to the employee a 
notice of the tips received by such employee for each day that such 
employee works.
 ``
        (B) An employer may not keep tips received by its employees for 
any purposes, including--
 ``
            (i) allowing managers or supervisors to keep any portion 
 of employees' tips, regardless of whether or not the employer 
 takes a tip credit; or
 ``
            (ii) recovering the cost to the employer of processing 
 tips.''.

    (b) Effective Date.--The amendments made by this section shall take 
effect on the date that is 1 year after the date of enactment of this 
Act.

SEC. 5. CIVIL PENALTIES.

    (a) In General.--

Section 16

    (e)

    (2) of the Fair Labor Standards Act 
(29 U.S.C. 214

    (e)

    (2) ) is amended by striking ``$1,100'' each place it 
appears and inserting ``$2,200''.

    (b) Effective Date.--The amendments made by this section shall take 
effect on the date that is 120 days after the date of enactment of this 
Act.

SEC. 6. PROHIBITION ON REDUCTION IN FORCE OF WAGE AND HOUR DIVISION 
 INVESTIGATORS.

 Notwithstanding any other provision of law, any investigator within 
the Wage and Hour Division of the Department of Labor may not be 
removed under a reduction in force.

SEC. 7. ASSISTANCE TO STATES.

    (a) In General.--The Secretary of Labor is authorized to make 
grants to assist eligible State, local, and Tribal governments to--

    (1) develop and enforce wage laws and regulations; and

    (2) improve compliance with wage laws and regulations, 
 including through the development and execution of training and 
 educational workshops.

    (b) Application.--To be eligible to receive a grant under this 
section, a State or local government shall submit an application at 
such time, in such manner, and containing such information and 
assurances as the Secretary may require.

SEC. 8. NATIONAL ADVISORY COMMITTEE ON THE HOSPITALITY INDUSTRY.

    (a) Establishment.--The Secretary of Labor shall establish a 
commission to be known as the National Advisory Committee on the 
Hospitality Industry (in this Act referred to as the ``Commission'').

    (b) Duties of Commission.--The duties of the Commission shall be to 
advise the Secretary of Labor on all matters related to workers in the 
hospitality industry, including--

    (1) the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et 
 seq.);

    (2) tipped workers;

    (3) worker safety;

    (4) apprenticeships;

    (5) regulation of independent contractors;

    (6) visa programs; and

    (7) such other matters as the Commission determines 
 relevant.
            (c) Membership.--The Commission shall be composed of 15 members, 
appointed by the Secretary, as follows:

    (1) 5 representatives of labor organizations, including a 
 representative of each of the sectors within the hospitality 
 industry that follow:
        (A) Hotels and lodging.
        (B) Food and beverage service, including 
 restaurants.
            (C) Gaming and other forms of entertainment.

    (2) 5 representatives of employers, including a 
 representative of each of the sectors within the hospitality 
 industry that follow:
        (A) Hotels and lodging.
        (B) Food and beverage service, including 
 restaurants.
            (C) Gaming and other forms of entertainment.

    (3) 3 members of the public with expertise in issues facing 
 workers in the hospitality industry.

    (4) 2 representatives of State, local, or Tribal government 
 agencies related to tourism or wage enforcement.
            (d) Meetings.--The Commission shall meet not less than twice 
annually.

    (e) Staff.--The Secretary shall furnish to the Committee an 
executive secretary and such secretarial, clerical, and other services 
as are deemed necessary by the Sectetary to the conduct of the 
Committee's duties.

SEC. 9. COVID-ERA EITC IMPROVEMENTS RESTORED AND MADE PERMANENT.

    (a) Decrease in Minimum Age for Credit; Elimination of Maximum Age 
for Credit.--

Section 32
            (c) (1) of the Internal Revenue Code of 1986 is 
amended--

    (1) in paragraph
        (A)
            (ii) 
            (II) , by striking ``age 25 but not 
 attained age 65'' and inserting ``the applicable minimum age'', 
 and

    (2) by adding at the end the following new subparagraphs:
 ``
        (F) Applicable minimum age.--For purposes of this 
 paragraph, the term `applicable minimum age' means--
 ``
            (i) except as otherwise provided in this 
 paragraph, age 19,
 ``
            (ii) in the case of a specified student 
 (other than a qualified former foster youth or 
 a qualified homeless youth), age 24, and
 ``
            (iii) in the case of a qualified former 
 foster youth or a qualified homeless youth, age 
 18.
 ``
        (G) Specified student.--For purposes of this 
 paragraph, the term `specified student' means, with 
 respect to any taxable year, an individual who is an 
 eligible student (as defined in 

section 25A

    (b)

    (3) ) 
 during at least 5 calendar months during the taxable 
 year.
 ``
        (H) Qualified former foster youth.--For purposes 
 of this paragraph, the term `qualified former foster 
 youth' means an individual who--
 ``
            (i) on or after the date that such 
 individual attained age 14, was in foster care 
 provided under the supervision or 
 administration of an entity administering (or 
 eligible to administer) a plan under part B or 
 part E of title IV of the Social Security Act 
 (without regard to whether Federal assistance 
 was provided with respect to such child under 
 such part E), and
 ``
            (ii) provides (in such manner as the 
 Secretary may provide) consent for entities 
 which administer a plan under part B or part E 
 of title IV of the Social Security Act to 
 disclose to the Secretary information related 
 to the status of such individual as a qualified 
 former foster youth.
 ``
            (I) Qualified homeless youth.--For purposes of 
 this paragraph, the term `qualified homeless youth' 
 means, with respect to any taxable year, an individual 
 who certifies, in a manner as provided by the 
 Secretary, that such individual is either an 
 unaccompanied youth who is a homeless child or youth, 
 or is unaccompanied, at risk of homelessness, and self-
 supporting.''.

    (b) Increase in Credit and Phaseout Percentages.--The table 
contained in 

section 32

    (b)

    (1) of such Code is amended by striking 
``7.65'' and inserting ``15.3'' each place it appears.
            (c) Increase in Earned Income and Phaseout Amounts.--

    (1) In general.--The table contained in 

section 32

    (b)

    (2)
        (A) of such Code is amended--
        (A) by striking ``$4,220'' and inserting 
 ``$9,820'', and
        (B) by striking ``$5,280'' and inserting 
 ``$11,610''.

    (2) Inflation adjustment.--

Section 32

    (j)

    (1)
        (B)
            (i) of such 
 Code is amended by striking ``calendar year 1995'' and 
 inserting ``calendar year 2020''.
            (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.

SEC. 10. DEFINITIONS.

 In this Act:

    (1) State.--The term ``State'' has the meaning given such 
 term in 

section 3
            (c) of the Fair Labor Standards Act of 1938 
 (29 U.S.C. 3
            (c) ).

    (2) Tribal government.--The term ``Tribal government'' 
 means the government of an Indian Tribe, as such term is 
 defined in 

section 4

    (e) of the Indian Self-Determination and 
 Education Assistance Act (25 U.S.C. 5304

    (e) ).
 <all>