The Labor Income Fairness and Transparency (LIFT) Act seeks to amend the Fair Labor Standards Act of 1938 by implementing a phased increase in the federal minimum wage. Beginning one year after enactment, the minimum wage would rise incrementally to $10.25, then to $13.75 after 12 months, and finally to $17.00 after 24 months. After 36 months, the minimum wage would be annually adjusted based on increases in the median hourly wage of all employees, ensuring it keeps pace with economic changes.

The bill also targets the elimination of subminimum wages for various groups, including youth, student-learners, full-time students, and individuals with disabilities, by gradually increasing their wages to the full minimum wage over a 36-month period. For tipped employees, the direct wage paid by employers would similarly increase in phases, eventually reaching the full minimum wage after 36 months, while prohibiting employers from retaining any portion of employee tips. These changes, along with the general minimum wage increase, would take effect one year after the bill's enactment.

Further provisions include doubling civil penalties for certain wage violations to $2,200 and prohibiting reductions in force for investigators within the Department of Labor's Wage and Hour Division. The bill authorizes grants to state, local, and Tribal governments to enhance wage law enforcement and compliance, and establishes a National Advisory Committee on the Hospitality Industry to advise the Secretary of Labor on worker issues. Finally, it restores and makes permanent COVID-era improvements to the Earned Income Tax Credit, lowering the minimum age and eliminating the maximum age for eligibility, and increasing credit and phaseout amounts.