This bill, titled the "Raise the Wage Act of 2025," proposes significant increases to the federal minimum wage and aims to eliminate subminimum wage provisions for certain worker categories. It mandates an incremental increase in the general federal minimum wage, starting at $9.50 per hour on the effective date and reaching $17.00 per hour five years later. After this period, the minimum wage will be annually adjusted based on the percentage increase in the median hourly wage of all employees, as determined by the Bureau of Labor Statistics.

The legislation also addresses wages for tipped employees, gradually increasing their cash wage until it equals the full federal minimum wage after six years, thereby phasing out the separate tipped minimum wage. Furthermore, it ensures that employees retain all tips received and requires employers to inform them of this right. Similarly, the bill raises the minimum wage for newly hired employees who are less than 20 years old, incrementally bringing it up to the general federal minimum wage and eventually repealing the separate youth minimum wage.

A key provision focuses on individuals with disabilities, incrementally raising their subminimum wage over five years until it matches the general federal minimum wage. The bill prohibits the issuance of new special certificates allowing subminimum wages for individuals with disabilities and provides transition assistance to help employers comply and ensure continued employment opportunities. The authority to issue these special certificates will sunset once the wage rate for individuals with disabilities equals the general minimum wage, promoting economic self-sufficiency.

Finally, the bill requires the Secretary of Labor to publish notice of all scheduled wage increases in the Federal Register and on the Department of Labor website at least 60 days before they take effect, ensuring transparency. The Act and its amendments are set to take effect on the first day of the third month following its enactment.