Key Democrats in the Senate and the House have introduced legislation to raise the federal minimum wage to $17/hour. The “Raise the Wage Act” was introduced in the Senate on July 25 by Senate Health, Education, Labor, and Pensions (HELP) Committee Chair Sen. Bernie Sanders (I-VT). Senate HELP has jurisdiction over minimum wage issues. The bill was introduced in the House by Education & the Workforce Committee ranking member Rep. Bobby Scott (D-VA). The Education & the Workforce Committee has jurisdiction over the bill in the House.

The bill would phase in the minimum wage increase over five years. It would start in the year after enactment by raising the current federal minimum wage of $7.25/hour to $9.50/hour. It would then add $1.50/hour each year to the minimum wage until the minimum wage reaches $17/hour. Further, the bill provides a mechanism by which the Department of Labor (DOL) could in the future raise the federal minimum wage without Congressional action. The current federal minimum wage has not been raised since 2009.

Prospects: It is likely that HELP Chairman Sen. Sanders can and will have his committee mark up the federal minimum wage bill, and send it to the full Senate for a vote. However, the bill is opposed by almost all Republicans, and is the source of considerable concern to a number of Democrats, too. Thus, at this juncture, it appears virtually impossible that the Raise the Wage Act can pass in the House, and not at all certain it could pass in the Democratic-controlled Senate this year.

NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at DBoyle@naifa.org; or Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org; or Michael Hedge – Senior Director – Government Relations, at mhedge@naifa.org.