HR3662-119

1. Short title This Act may be cited as the Labor Income Fairness and Transparency Act or LIFT Act.

2. Minimum wage increase Section 6(a)(1) of the Fair Labor Standards Act of 1938 is amended to read as follows: except as otherwise provided in this section, not less than— $10.25 an hour, beginning on the effective date described in section 2(c) the Labor Income Fairness and Transparency Act; $13.75 an hour, beginning 12 months after such effective date; $17.00 an hour, beginning 24 months after such effective date; and the amount determined under subsection (h) for the 1-year period beginning 36 months after such effective date, and for each 1-year period thereafter; Section 6 of the Fair Labor Standards Act of 1938 is amended by adding at the end the following: Not later than 90 days prior to the date on which the minimum wage under subsection (a)(1)(D) shall take effect for a 1-year period, the Secretary shall determine the minimum wage for such 1-year period. Such minimum wage for such period shall be calculated by multiplying— the minimum wage for the 1-year period preceding the covered 1-year period, by the ratio obtained by dividing— the median hourly wage of all employees for the covered 1-year period, by the median hourly wage of all employees for the 1-year period preceding the covered 1-year period. In this subsection, the term ‘median hourly wage’ means, when used with respect to a 1-year period, the median hourly wage for the most recent four-quarter period for which data are available that precedes such 1-year period. In this subsection, the term covered 1-year period means the 1-year period for which the minimum wage is being determined under this subsection. Not later than 90 days after the last day of each calendar quarter, the Secretary, through the Bureau of Labor Statistics, shall determine the median hourly wage of all employees for such calendar quarter. The minimum wage for a covered 1-year period shall not be less than the minimum wage for the 1-year period preceding the covered 1-year period. In setting the minimum wage for any covered 1-year period, such minimum wage shall be rounded up to the nearest multiple of $0.05 if the amount calculated under this subsection is not a multiple of $0.05. The amendments made by this section shall take effect on the date that is 1 year after the date of enactment of this Act. (1)except as otherwise provided in this section, not less than— (A)$10.25 an hour, beginning on the effective date described in section 2(c) the Labor Income Fairness and Transparency Act; (B)$13.75 an hour, beginning 12 months after such effective date; (C)$17.00 an hour, beginning 24 months after such effective date; and (D)the amount determined under subsection (h) for the 1-year period beginning 36 months after such effective date, and for each 1-year period thereafter;. (h) (1)Not later than 90 days prior to the date on which the minimum wage under subsection (a)(1)(D) shall take effect for a 1-year period, the Secretary shall determine the minimum wage for such 1-year period. Such minimum wage for such period shall be calculated by multiplying— (A)the minimum wage for the 1-year period preceding the covered 1-year period, by (B)the ratio obtained by dividing— (i)the median hourly wage of all employees for the covered 1-year period, by (ii)the median hourly wage of all employees for the 1-year period preceding the covered 1-year period. (2) (A)In this subsection, the term ‘median hourly wage’ means, when used with respect to a 1-year period, the median hourly wage for the most recent four-quarter period for which data are available that precedes such 1-year period. (B)In this subsection, the term covered 1-year period means the 1-year period for which the minimum wage is being determined under this subsection. (3)Not later than 90 days after the last day of each calendar quarter, the Secretary, through the Bureau of Labor Statistics, shall determine the median hourly wage of all employees for such calendar quarter. (4)The minimum wage for a covered 1-year period shall not be less than the minimum wage for the 1-year period preceding the covered 1-year period. (5)In setting the minimum wage for any covered 1-year period, such minimum wage shall be rounded up to the nearest multiple of $0.05 if the amount calculated under this subsection is not a multiple of $0.05. .

3. Elimination of subminimum wages Section 6(g) of the Fair Labor Standards Act of 1938 (28 U.S.C. 206(g)) is amended to read as follows: In lieu of the rate prescribed by subsection (a)(1), any employer may pay any employee of such employer, during the first 90 consecutive calendar days after such employee is initially employed by such employer, a wage which is not less than— $8.50 an hour, beginning on the date described in subsection (a)(1)(A); $12.75 an hour, beginning 12 months after such date; $17.00 an hour, beginning 24 months after such date; and the amount in effect under subsection (a)(1), beginning 36 months after such date. Section 14(a) of the Fair Labor Standards Act of 1938 (28 U.S.C. 214(a)) is amended— by striking The Secretary and inserting (1) Subject to paragraph (2), the Secretary; and by adding at the end the following: Beginning on the date described in subsection (a)(1)(A) of section 6, the Secretary may not provide for a wage under paragraph (1) that is lower than— $9.29 an hour, beginning on such date; $13.14 an hour, beginning 12 months after such date; $17.00 an hour, beginning 24 months after such date; and the amount in effect under section 6(a)(1), beginning 36 months after such date. Section 14(b) of the Fair Labor Standards Act (28 U.S.C. 214(b)) is amended by adding at the end the following: Beginning on the date described in subsection (a)(1)(A) of section 6, paragraphs (1)(A), (2), and (3) shall be applied by substituting for the dollar amounts in such paragraphs a dollar amount equal to— $9.77, beginning on such date; $13.38, beginning 12 months after such date; $17.00, beginning 24 months after such date; and the amount in effect under subsection (a)(1) of section 6, beginning 36 months after such date. Section 14(c)(1)(A) of the Fair Labor Standards Act (28 U.S.C. 214(c)(1)(A)) is amended to read as follows: not lower than— $9.77 an hour, beginning on the date described in subsection (a)(1)(A) of section 6; $13.38 an hour, beginning 12 months after such date; $17.00 an hour, beginning 24 months after such date; and the amount in effect under subsection (a)(1) of section 6, beginning 36 months after such date. Section 14(c) of the Fair Labor Standards Act (28 U.S.C. 214(c)) is further amended by adding at the end the following: Beginning on the date described in paragraph (1)(A)(iv), the Secretary may not issue a special certificate under this subsection. The amendments made by this section shall take effect on the date that is 1 year after the date of enactment of this Act. (g)In lieu of the rate prescribed by subsection (a)(1), any employer may pay any employee of such employer, during the first 90 consecutive calendar days after such employee is initially employed by such employer, a wage which is not less than— (1)$8.50 an hour, beginning on the date described in subsection (a)(1)(A); (2)$12.75 an hour, beginning 12 months after such date; (3)$17.00 an hour, beginning 24 months after such date; and (4)the amount in effect under subsection (a)(1), beginning 36 months after such date.. (2) Beginning on the date described in subsection (a)(1)(A) of section 6, the Secretary may not provide for a wage under paragraph (1) that is lower than— (A) $9.29 an hour, beginning on such date; (B) $13.14 an hour, beginning 12 months after such date; (C) $17.00 an hour, beginning 24 months after such date; and (D) the amount in effect under section 6(a)(1), beginning 36 months after such date. . (5) Beginning on the date described in subsection (a)(1)(A) of section 6, paragraphs (1)(A), (2), and (3) shall be applied by substituting for the dollar amounts in such paragraphs a dollar amount equal to— (A) $9.77, beginning on such date; (B) $13.38, beginning 12 months after such date; (C) $17.00, beginning 24 months after such date; and (D) the amount in effect under subsection (a)(1) of section 6, beginning 36 months after such date. . (A)not lower than— (i)$9.77 an hour, beginning on the date described in subsection (a)(1)(A) of section 6; (ii)$13.38 an hour, beginning 12 months after such date; (iii)$17.00 an hour, beginning 24 months after such date; and (iv)the amount in effect under subsection (a)(1) of section 6, beginning 36 months after such date.. (6)Beginning on the date described in paragraph (1)(A)(iv), the Secretary may not issue a special certificate under this subsection..

4. Tipped employees Section 3(m)(2) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)) is amended to read as follows: In determining the wage an employer is required to pay a tipped employee, the amount paid such employee by the employee's employer shall be an amount equal to— $7.09 an hour, beginning on the date described in subsection (a)(1)(A) of section 6; $12.05 an hour, beginning 12 months after such date; $17.00 an hour, beginning 24 months after such date; and the amount in effect under section (a)(1) of section 6, beginning 36 months after such date. An employer may not keep tips received by its employees for any purposes, including— allowing managers or supervisors to keep any portion of employees’ tips, regardless of whether or not the employer takes a tip credit; or recovering the cost to the employer of processing tips. The amendments made by this section shall take effect on the date that is 1 year after the date of enactment of this Act. (2) (A) In determining the wage an employer is required to pay a tipped employee, the amount paid such employee by the employee's employer shall be an amount equal to— (i) $7.09 an hour, beginning on the date described in subsection (a)(1)(A) of section 6; (ii) $12.05 an hour, beginning 12 months after such date; (iii) $17.00 an hour, beginning 24 months after such date; and (iv) the amount in effect under section (a)(1) of section 6, beginning 36 months after such date. Any employee shall have the right to retain any tips received by such employee, except that this subsection shall not be construed to prohibit the pooling of tips among employees who customarily and regularly receive tips. An employer shall provide to the employee a notice of the tips received by such employee for each day that such employee works. (B)An employer may not keep tips received by its employees for any purposes, including— (i)allowing managers or supervisors to keep any portion of employees’ tips, regardless of whether or not the employer takes a tip credit; or (ii)recovering the cost to the employer of processing tips. .

6. Prohibition on reduction in force of Wage and Hour Division investigators Notwithstanding any other provision of law, any investigator within the Wage and Hour Division of the Department of Labor may not be removed under a reduction in force.

7. Assistance to States The Secretary of Labor is authorized to make grants to assist eligible State, local, and Tribal governments to— develop and enforce wage laws and regulations; and improve compliance with wage laws and regulations, including through the development and execution of training and educational workshops. To be eligible to receive a grant under this section, a State or local government shall submit an application at such time, in such manner, and containing such information and assurances as the Secretary may require.

8. National Advisory Committee on the Hospitality Industry The Secretary of Labor shall establish a commission to be known as the National Advisory Committee on the Hospitality Industry (in this Act referred to as the Commission). The duties of the Commission shall be to advise the Secretary of Labor on all matters related to workers in the hospitality industry, including— the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.); tipped workers; worker safety; apprenticeships; regulation of independent contractors; visa programs; and such other matters as the Commission determines relevant. The Commission shall be composed of 15 members, appointed by the Secretary, as follows: 5 representatives of labor organizations, including a representative of each of the sectors within the hospitality industry that follow: Hotels and lodging. Food and beverage service, including restaurants. Gaming and other forms of entertainment. 5 representatives of employers, including a representative of each of the sectors within the hospitality industry that follow: Hotels and lodging. Food and beverage service, including restaurants. Gaming and other forms of entertainment. 3 members of the public with expertise in issues facing workers in the hospitality industry. 2 representatives of State, local, or Tribal government agencies related to tourism or wage enforcement. The Commission shall meet not less than twice annually. The Secretary shall furnish to the Committee an executive secretary and such secretarial, clerical, and other services as are deemed necessary by the Sectetary to the conduct of the Committee’s duties.

10. Definitions In this Act: The term State has the meaning given such term in section 3(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 3(c)). The term Tribal government means the government of an Indian Tribe, as such term is defined in section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304(e)).