To amend the Fair Labor Standards Act of 1938 to provide for an increase to the minimum wage, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The Labor Income Fairness and Transparency Act (LIFT Act) raises the federal minimum wage from the current $7.25/hour to $17.00/hour over a three-year phase-in ($10.25, then $13.75, then $17.00), and after year three indexes it permanently to the median hourly wage so it rises automatically without future legislation. The bill also eliminates subminimum wage categories -- raising the youth training wage, wages for workers with disabilities (Section 14(c) certificates), and tipped employee base wages to reach full parity with the standard minimum wage by year three. It phases out the Secretary of Labors authority to issue subminimum wage certificates entirely. In addition, the bill doubles civil penalties for FLSA violations, creates a federal grant program for state/local/tribal wage enforcement, establishes a 15-member National Advisory Committee on the Hospitality Industry, prohibits reductions in force of Wage and Hour Division investigators, and restores and makes permanent the expanded COVID-era Earned Income Tax Credit for younger workers, former foster youth, and homeless youth.
Who Benefits and How
Low-wage workers are the primary beneficiaries -- the roughly 1.1 million workers currently earning at or below the federal minimum wage would see their wages more than double. Tipped workers (approximately 4.5 million, concentrated in restaurants, bars, and hotels) benefit as their employer-required cash wage rises from the current $2.13/hour to full parity with the minimum wage, and the bill explicitly prohibits employers and managers from retaining any portion of tips. Workers with disabilities currently paid below minimum wage under Section 14(c) certificates benefit as the subminimum wage is phased out and the Secretarys authority to issue new certificates is eliminated. Young workers aged 19-24, former foster youth (age 18+), and homeless youth benefit from restored and permanently expanded EITC eligibility with doubled credit rates and income thresholds. Hospitality industry workers benefit from the new National Advisory Committee that will advise on labor standards, safety, apprenticeships, and contractor classification. State and local governments benefit from new federal grants for wage law enforcement and compliance training. Wage and Hour Division investigators gain job protection from the anti-RIF provision.
Who Bears the Burden and How
Employers, particularly in labor-intensive low-wage industries (restaurants, retail, hospitality, agriculture, home care), face significantly higher labor costs. Restaurant and hospitality employers face a triple impact: higher base wages, elimination of the tip credit, and oversight from the new advisory committee. Small businesses in low-wage sectors face the sharpest proportional cost increases. The federal Treasury bears the cost of expanded EITC benefits (higher credit rates, broader eligibility, updated inflation indexing base year). The Department of Labor takes on additional administrative responsibilities: managing the grant program for state/local wage enforcement, staffing the 15-member Advisory Committee, and calculating quarterly median hourly wages through BLS for the indexing formula.
Key Provisions
- Phases federal minimum wage from $7.25 to $17.00 over three years, then indexes to median hourly wage growth permanently
- Eliminates subminimum wages for youth trainees, workers with disabilities, and student workers by year three
- Raises tipped employee base cash wage from $2.13 to $17.00 over three years, eliminating the tip credit; prohibits employer/manager tip theft
- Doubles FLSA civil penalties from $1,100 to $2,200
- Authorizes federal grants for state/local/tribal wage law enforcement and compliance training
- Establishes 15-member National Advisory Committee on the Hospitality Industry with labor, employer, public, and government representation
- Prohibits any reduction in force of Wage and Hour Division investigators
- Restores and makes permanent expanded COVID-era EITC: lowers eligibility age to 19 (18 for foster/homeless youth), doubles credit rates from 7.65% to 15.3%, and more than doubles income thresholds
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Raises the federal minimum wage to $17.00/hour over three years and indexes it permanently to median hourly wage growth; eliminates all subminimum wage categories (youth, disability, student, tipped); doubles FLSA civil penalties; creates federal grants for state wage enforcement; establishes a National Advisory Committee on the Hospitality Industry; protects Wage and Hour Division investigators from RIFs; and restores/makes permanent expanded COVID-era EITC eligibility for younger and vulnerable workers.
Key Policy Areas
Labor, Tax, Social Welfare
Primary Purpose
Raises the federal minimum wage to $17.00/hour over three years and indexes it permanently to median hourly wage growth; eliminates all subminimum wage categories (youth, disability, student, tipped); doubles FLSA civil penalties; creates federal grants for state wage enforcement; establishes a National Advisory Committee on the Hospitality Industry; protects Wage and Hour Division investigators from RIFs; and restores/makes permanent expanded COVID-era EITC eligibility for younger and vulnerable workers.
Policy Domains
Section 9 -- COVID-era EITC Improvements Restored and Made Permanent
Identified Gains
Contextual inference, no direct clause citation- Workers aged 19-24 without qualifying children (newly EITC-eligible)
- Former foster youth aged 18+ (reduced eligibility age)
- Homeless youth (reduced eligibility age to 18)
- Low-income workers without children (doubled credit rate and income thresholds)
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal Treasury (increased EITC expenditures from expanded eligibility and doubled rates)
- IRS (administration of expanded eligibility verification, especially foster/homeless certification)
Contextual inference, no direct clause citation
Sections 2-5 -- Minimum Wage Increase, Subminimum Wage Elimination, Tipped Employees, and Civil Penalties
Identified Gains
Contextual inference, no direct clause citation- Low-wage workers earning at or below the federal minimum wage
- Tipped workers (restaurants, bars, hotels)
- Workers with disabilities currently paid subminimum wages under Section 14(c) certificates
- Young workers in training positions currently paid subminimum youth wages
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Employers in labor-intensive low-wage industries (restaurants, retail, hospitality, agriculture, home care)
- Small businesses in low-wage sectors facing proportionally larger payroll increases
- Employers of workers with disabilities who currently use Section 14(c) subminimum wage certificates
- Restaurant and hospitality employers losing the tip credit
Contextual inference, no direct clause citation
Sections 6-8 -- Enforcement Protection, State Grants, and Advisory Committee
Identified Gains
Contextual inference, no direct clause citation- Wage and Hour Division investigators (job protection)
- State and local government wage enforcement agencies (new federal grants)
- Hospitality industry workers (advisory committee advocacy)
- Labor organizations with hospitality sector members
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Department of Labor (grant administration, committee staffing, BLS median wage calculations)
- Employers subject to increased enforcement scrutiny from expanded state programs
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
IntroducedMs. Titus introduced the following bill; which was referred to …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Bureau of Labor Statistics, Department of Labor Wage and Hour Division (enhanced deterrent tool), Federal Treasury
Positive-direction: Department of Labor Wage and Hour Division (enhanced deterrent tool), Local government wage enforcement agencies, State government wage enforcement agencies, Tribal governments
Negative-direction: Bureau of Labor Statistics, Federal Treasury, Internal Revenue Service (eligibility verification for foster/homeless youth), Secretary of Labor (loss of subminimum wage certificate authority)
Employers subject to state/local wage enforcement (increased scrutiny), Employers who violate Fair Labor Standards Act provisions, Labor organizations representing hospitality workers
Positive-direction: Labor organizations representing hospitality workers, Low-income childless workers (all ages, doubled credit rate), Low-income workers aged 19-24 without qualifying children, Low-wage workers earning at or below the federal minimum wage, Young workers in training positions currently paid subminimum youth wages
Negative-direction: Employers subject to state/local wage enforcement (increased scrutiny), Employers who violate Fair Labor Standards Act provisions
Employers in labor-intensive low-wage industries, Employers of youth trainees and apprentices, Managers and supervisors in tipped industries (prohibited from taking employee tips)
Positive-direction: Tipped workers (restaurant servers, bartenders, hotel staff)
Negative-direction: Employers in labor-intensive low-wage industries, Employers of youth trainees and apprentices, Managers and supervisors in tipped industries (prohibited from taking employee tips), Restaurant and hospitality employers
Sheltered workshops and employers using Section 14(c) certificates, Workers with disabilities currently paid subminimum wages under Section 14(c) certificates
Positive-direction: Workers with disabilities currently paid subminimum wages under Section 14(c) certificates
Negative-direction: Sheltered workshops and employers using Section 14(c) certificates
Hospitality industry employers (hotels, restaurants, gaming), Hotel and lodging employers
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of Labor
- "the_secretary"
- → Secretary of Labor
- "the_secretary"
- → Secretary of the Treasury
Note: The Secretary in Sections 2-8 refers to the Secretary of Labor; in Section 9 (EITC provisions) the Secretary refers to the Secretary of the Treasury (standard IRC convention).
Key Definitions
Terms defined in this bill
Has the meaning given in section 3(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 3(c)).
The government of an Indian Tribe as defined in section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304(e)).
An individual who is an eligible student during at least 5 calendar months during the taxable year.
The median hourly wage for the most recent four-quarter period for which data are available that precedes the relevant 1-year period.
The 1-year period for which the minimum wage is being determined under the auto-indexing subsection.
Age 19 generally; age 24 for specified students (excluding foster/homeless youth); age 18 for qualified former foster youth or qualified homeless youth.
An individual who certifies they are either an unaccompanied homeless child or youth, or unaccompanied, at risk of homelessness, and self-supporting.
An individual who was in foster care on or after age 14 under a plan supervised by an entity administering or eligible to administer a part B or part E title IV Social Security Act plan.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology