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COVID-19 Relief Bill Includes $15 Min Wage Hike and Tip Credit Elimination


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The Proposed Federal Covid-19 Relief Bill Includes a $15 Minimum Wage Hike and Elimination of the Tip Credit. Will Those Provisions Survive?
Monday, February 22, 2021
Making good on President Biden’s campaign promise, the House of Representatives has included in its $1.9 trillion Covid-19 relief bill, known as the “American Rescue Plan Act of 2021,” revisions to the Fair Labor Standards Act (FLSA) that would increase the federal minimum wage to $15 per hour by 2025. The current federal minimum wage is $7.25 and has not increased since 2009. Under the proposal, the minimum wage would almost immediately increase to $9.50 per hour, then would increase annually by $1.50 per hour until reaching $15 in 2025. Each year thereafter, any further increase would be based on the median hourly wage of all employees for the prior year. ....

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The Proposed Federal Covid-19 Relief Bill Includes A $15 Minimum Wage Hike And Elimination Of The Tip Credit. Will Those Provisions Survive? | Jackson Lewis P.C.


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Making good on President Biden’s campaign promise, the House of Representatives has included in its $1.9 trillion Covid-19 relief bill, known as the “American Rescue Plan Act of 2021,” revisions to the Fair Labor Standards Act (FLSA) that would increase the federal minimum wage to $15 per hour by 2025. The current federal minimum wage is $7.25 and has not increased since 2009. Under the proposal, the minimum wage would almost immediately increase to $9.50 per hour, then would increase annually by $1.50 per hour until reaching $15 in 2025. Each year thereafter, any further increase would be based on the median hourly wage of all employees for the prior year. ....

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