H.R. 2743: Raise the Wage Act of 2025
Sponsor
Robert Scott
Democrat · VA-3
Bill Progress
Latest Action · Apr 8, 2025
Referred to the House Committee on Education and Workforce.
Why it matters
The federal minimum wage has been $7.25 an hour since July 2009 — the longest stretch without a raise in the law's 86-year history. If you work 40 hours a week at that rate, your annual gross income is $15,080, roughly $4,000 below the federal poverty line for a family of two.
The math is stark. At $7.25 an hour, a full-time worker earns $15,080 a year before taxes. At $17 an hour, that same worker would bring home $35,360 — a 134% increase over the phase-in period.
The bill stages the increase in six steps: $9.50, then $11.00, $12.50, $14.00, $15.50, and finally $17.00. Each step kicks in one year after the last. Once the wage hits $17, it shifts to an automatic formula tied to growth in the national median hourly wage, rounded up to the nearest nickel. The floor can never go backward — each year's adjusted minimum must be at least as high as the prior year's.
The bill also eliminates two separate lower-wage categories that have existed for decades. Tipped workers — servers, bartenders, delivery drivers — currently have a federal cash wage floor of just $2.13 an hour (set in 1991), with employers expected to make up the difference through tips. H.R. 2743 phases that tipped wage up from $6.00 to $17.00 over seven years, then abolishes the separate tipped wage entirely. Workers would also gain an explicit statutory right to keep all tips they receive.
The youth subminimum wage — a provision that lets employers pay newly hired workers under 20 as little as $4.25 for their first 90 days — gets the same treatment. It phases up and then disappears.
A third provision addresses workers with disabilities currently paid below minimum wage under special 14(c) certificates. Those wages would step up from $5.00 to eventually match the full federal minimum, and the Department of Labor would be barred from issuing any new subminimum-wage certificates. The certificate authority sunsets entirely once wages equalize.
What does H.R. 2743 do?
Federal minimum climbs to $17 over six years
The wage floor rises in annual steps — $9.50, $11.00, $12.50, $14.00, $15.50, $17.00 — starting from the effective date. A full-time worker at $17/hour earns $35,360 annually, up from $15,080 at the current $7.25.
Automatic increases locked in after $17
Once the wage reaches $17, annual adjustments are pegged to growth in the median hourly wage of all U.S. employees. The new rate is published 60 days before taking effect, rounded up to the nearest $0.05, and can never decrease.
Tipped workers get the same base wage as everyone else
The separate tipped cash wage — frozen at $2.13 since 1991 — phases up from $6.00 to $17.00 over seven years. After that, the two-tier system ends and tipped workers receive the full federal minimum before tips.
Workers keep the tips they earn
The bill codifies an explicit right for employees to retain all tips received and requires employers to notify workers of that right. Penalties apply when tips are improperly kept or used by employers.
No more lower wage for workers under 20
The youth subminimum wage — currently $4.25 for the first 90 days of employment — phases up in $1.75 annual increments until it matches the regular minimum, then the provision is repealed entirely.
Subminimum wage for disabled workers phased out
Special 14(c) certificate wages rise from $5.00 to eventually match the full federal minimum. No new certificates will be issued. The entire certificate authority sunsets once wages equalize, with DOL providing transition assistance to affected employers and workers.
Who benefits from H.R. 2743?
Workers in the 20 states still at $7.25
Roughly 1.1 million hourly workers earn exactly the federal minimum, and millions more earn just above it. Workers in states like Texas, Pennsylvania, and Georgia with no state minimum above the federal floor would see the most direct impact.
Tipped workers earning $2.13/hour base
An estimated 5.5 million tipped workers nationwide — servers, bartenders, valets, salon workers — would move from a $2.13 cash wage (unchanged since 1991) to the full federal minimum, reducing dependence on tip income to meet basic expenses.
Young workers under 20 in their first job
Newly hired workers under 20 would no longer start at $4.25 for their first 90 days. The lower training wage would phase out, putting young workers on the same pay floor as their older coworkers.
Workers with disabilities on subminimum certificates
Approximately 40,000 workers with disabilities currently earn below minimum wage under 14(c) certificates — some as little as pennies per hour. Their wages would step up to match the full minimum over five years.
Who is affected by H.R. 2743?
Restaurants, bars, and hospitality employers
These industries depend heavily on the tipped wage structure. Eliminating it means employers would pay the full minimum before tips, increasing payroll costs significantly in an industry with thin margins.
Small businesses in low-cost regions
Employers in areas where prevailing wages are well below $17 face the steepest adjustment. A business currently paying $9/hour in rural Mississippi faces a very different ramp than one in Seattle already above $17.
Sheltered workshops using 14(c) certificates
Organizations employing workers with disabilities under subminimum-wage certificates would need to restructure pay, and new employers could no longer apply for certificates at all.
Workers in high-minimum-wage states
In Washington ($17.13), California ($16.50), and other states already near or above $17, most workers would see little immediate change from the federal increase.
H.R. 2743 Common Questions
How much would the federal minimum wage increase under H.R. 2743?
From $7.25 to $17.00 an hour over six years. The steps are $9.50, $11.00, $12.50, $14.00, $15.50, and $17.00 — each kicking in one year after the last. After that, annual increases are automatic, tied to median wage growth.
Would tipped workers get the full minimum wage under the Raise the Wage Act?
Yes. The tipped cash wage — frozen at $2.13 since 1991 — would phase up from $6.00 to $17.00 over seven years. After that, the separate tipped wage ends entirely and tipped workers earn the same base as everyone else, plus tips on top.
Can employers take a portion of their workers' tips under H.R. 2743?
No. The bill gives employees an explicit statutory right to keep all tips they receive. Employers must inform workers of that right, and penalties apply when tips are improperly kept or used.
Does H.R. 2743 end the lower wage for workers under 20?
Yes. The youth subminimum wage — currently $4.25 for the first 90 days of a new job — would rise by $1.75 per year until it matches the regular federal minimum, then the provision is repealed entirely.
What happens to subminimum wages for workers with disabilities?
Wages under special 14(c) certificates would step up from $5.00 to $7.50, $10.00, $12.50, $15.50, and then match the full federal minimum. No new certificates would be issued, and the entire program sunsets once wages equalize.
How would the minimum wage keep up with inflation after reaching $17?
Annual adjustments would track the percentage growth in the median hourly wage of all U.S. workers, rounded up to the nearest $0.05. The adjusted rate can never drop below the prior year's level. DOL must publish notice at least 60 days before each increase.
When would the Raise the Wage Act take effect if passed?
The first day of the third month after enactment. So if signed in June, the initial $9.50 rate would kick in September 1, with each subsequent step arriving one year later.
Does H.R. 2743 affect states that already have a minimum wage above $7.25?
Only when the federal rate catches up. Workers always get whichever minimum is higher — state or federal. In states already at $15 or more, most workers would see no change until the federal schedule surpasses their state rate.
Based on H.R. 2743 bill text
HR2743 Legislative Journey
House: Committee Action
Apr 8, 2025
Referred to the House Committee on Education and Workforce.
About the Sponsor
Robert Scott
Democrat, Virginia's 3rd congressional district · 33 years in Congress
Committees: Education and Workforce, the Budget
View full profile →
Cosponsors (169)
All 169 cosponsors are Democrats. Cosponsors represent 37 states: Alabama, Arizona, California, and 34 more.
Cosponsor Coverage Map
Committee Sponsors
Education and Workforce Committee
14 of 36 committee members cosponsored
1 Democrats across this committee haven't cosponsored yet. Mobilize their constituents
What laws does H.R. 2743 change?
2 changes
Sections Amended
Section 6 of Fair Labor Standards Act of 1938 (29 U.S.C. 206)
adding at the end the following: ``(h)(1) Not later than each date that is 90 days before a new minimum wage determined under subsection (a)(1)(G) is to take effect, the Secretary shall determine the minimum wage to be in effect under this subsection for each period described in subsection (a)(1)(G)
Section 14(c) of Fair Labor Standards Act of 1938 (29 U.S.C. 214(c))
adding at the end the following: ``(6) Prohibition on new special certificates
H.R. 2743 Quick Facts
- Committee
- Education and Workforce
- Chamber
- House
- Policy
- Labor and Employment
- Introduced
- Apr 8, 2025
Referred to the House Committee on Education and Workforce.
Apr 8, 2025
Official Sources
Who is lobbying on H.R. 2743?
5 organizations lobbying on this bill
SERVICE EMPLOYEES INTERNATIONAL UNION CTW-CLC | 5 |
NATIONAL TREASURY EMPLOYEES UNION | 3 |
THE PATRIOTIC MILLIONAIRES LLC | 1 |
COALITION FOR THE PRESERVATION OF EMPLOYMENT CHOICE F/K/A 14C COALITION | 1 |
NFIB (NATIONAL FEDERATION OF INDEPENDENT BUSINESS) | 1 |
Showing 1-5 of 5 organizations
H.R. 2743 Bill Text
“To provide for increases in the Federal minimum wage, and for other purposes.”
Source: U.S. Government Publishing Office
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