Give America a Raise Act
- Sponsor
- Rep. Norcross, Donald [D-NJ-1]
- Committees
- Education and Workforce Committee (primary)
- Last action
- Feb 10, 2026
Bottom line
This bill significantly raises the federal minimum wage and eliminates several sub-minimum wage categories, aiming to increase earnings for millions of low-wage workers and promote wage equity.
What it actually does
This bill significantly increases the federal minimum wage incrementally over three years to $20.00 per hour, then indexes it to inflation or Gross Domestic Product growth. It also phases out the sub-minimum wage for tipped employees and newly hired employees under 20, and transitions individuals with disabilities to the full federal minimum wage over a six-year period.
Proponents argue
Supporters argue that raising the minimum wage will lift millions of workers out of poverty, reduce income inequality, and stimulate the economy by increasing consumer spending. They also contend that phasing out sub-minimum wages will provide greater economic security and fairness for vulnerable populations, ensuring all workers earn a living wage.
Opponents contend
Opponents typically argue that a significant increase in the minimum wage could lead to job losses, particularly in industries with thin profit margins, as businesses may reduce staff, slow hiring, or automate tasks to offset increased labor costs. They also express concerns about potential inflation and the disproportionate impact on small businesses and specific sectors like the restaurant industry.
The bill is concise and its core provisions are clearly laid out, making it accessible for a quick but thorough review by an informed reader.
Section 2(a)
Incremental Federal Minimum Wage Increase
This provision amends the Fair Labor Standards Act of 1938 to raise the federal minimum wage from its current level to $10.00 per hour upon the bill's effective date. It then mandates further increases to $13.00 an hour one year later, $16.50 an hour two years later, and $20.00 an hour three years after the effective date.
Supporters argue
Supporters argue this increase is necessary to provide a living wage, reduce poverty, and stimulate economic growth by boosting consumer purchasing power, especially for families struggling with rising costs.
Critics contend
Critics contend that such a rapid and substantial increase could lead to job losses, reduced hiring, and increased prices for consumers as businesses pass on higher labor costs to maintain profitability.
Tradeoffs
Balances the goal of improving worker welfare and reducing poverty against concerns about potential job displacement, business viability, and inflationary pressures.
Section 2(b)
Automatic Annual Adjustments to Minimum Wage
Four years after the initial effective date, and annually thereafter, the minimum wage will be adjusted based on the greater of the annual percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U) or the annual percentage increase in Gross Domestic Product (GDP). Any resulting amount that is not a multiple of $0.05 will be rounded up to the nearest $0.05.
Section 3(a), (c)
Gradual Elimination of Separate Tipped Minimum Wage
This section gradually increases the cash wage that employers must pay tipped employees, starting at $6.00 an hour on the effective date and rising to $20.00 an hour over six years. After this transition, the separate minimum wage for tipped employees is repealed, meaning they will receive the full federal minimum wage, and employers will no longer be able to claim a 'tip credit' against their wage obligations.
Section 4(a), (b)
Gradual Elimination of Separate Minimum Wage for Young Workers
This provision increases the sub-minimum wage for newly hired employees under 20 years old, starting at $6.00 an hour on the effective date. This wage will then increase annually by $2.00 or the amount needed to match the full federal minimum wage, whichever is less, until it equals the full federal minimum wage. Once parity is achieved, the separate youth minimum wage is repealed.
Section 6(a), (c)
Gradual Elimination of Special Certificates for Workers with Disabilities
This section phases out the ability of employers to pay individuals with disabilities a sub-minimum wage under special certificates. It increases the minimum wage for these workers incrementally over six years, starting at $5.00 an hour and reaching the full federal minimum wage after six years. New special certificates are prohibited from the date of enactment, and all existing certificates expire after the six-year transition period.
Amends the Fair Labor Standards Act to require employers to inform each tipped employee of their right to retain any tips received.
Section 3(b)(2)
Why it matters:This is standard legislative practice for making targeted amendments to existing statutory language.
Case for: Proponents argue this ensures transparency and protects tipped employees by making them explicitly aware of their rights regarding tip retention, reducing potential exploitation.
Case against: No specific opposition is typically raised against transparency requirements for employee rights, as it is generally seen as a basic protection.
Estimated impact: Low direct fiscal impact, but significant for employee awareness and potential enforcement actions regarding tip misappropriation.
Directs the Secretary of Labor to provide technical assistance and information to employers currently holding special certificates for individuals with disabilities. This assistance aims to help them comply with the new wage requirements and ensure continuing employment opportunities.
Section 6(a)(2)(A)
Why it matters:This is standard practice for including administrative support provisions related to major policy changes, ensuring a smoother transition for affected entities.
Case for: Proponents argue this assistance is crucial for a smooth transition, helping employers adapt to new wage requirements without disproportionately harming employment opportunities for individuals with disabilities.
Case against: No specific opposition is typically raised against providing transition assistance to affected entities, as it is generally viewed as a supportive measure.
Estimated impact: Modest administrative cost for the Department of Labor, with a potentially significant positive impact on employment stability for individuals with disabilities during the transition.