HB3662, the Labor Income Fairness and Transparency Act (LIFT Act), would substantially raise the federal minimum wage and tie future increases to growth in the median hourly wage. The bill sets a phased-in wage schedule beginning at $10.25 per hour, then rising to $13.75 after 12 months, $17.00 after 24 months, and thereafter adjusting annually based on a formula using Bureau of Labor Statistics median wage data. It also requires the Secretary of Labor to calculate and publish the median hourly wage each quarter for use in those future adjustments.
The bill goes beyond the general minimum wage by revising several subminimum wage categories. It phases up wages for youth workers, student learners, full-time students, and workers paid under special certificates, and ultimately eliminates the special certificate wage authority under section 14(c) of the Fair Labor Standards Act. It also increases the required cash wage for tipped employees, preserves employees’ right to keep tips, and prohibits employers from retaining tips or using them to cover processing costs. In addition, it raises civil penalties for certain Fair Labor Standards Act violations, bars reductions in force of Wage and Hour Division investigators, and authorizes grants to states, local governments, and tribal governments to strengthen wage-law enforcement and compliance education.
The bill would also create a National Advisory Committee on the Hospitality Industry to advise the Labor Secretary on issues affecting hospitality workers, including tipped work, worker safety, apprenticeships, independent contracting, and visa programs. Separately, it makes permanent and expands certain COVID-era Earned Income Tax Credit changes by lowering the minimum age for eligibility, removing the upper age limit, increasing the credit rate and phaseout percentages, and raising the income thresholds used in the credit calculation. Those tax changes would apply to taxable years beginning after December 31, 2025.
Because the bill was only referred to committee and no votes or hearing transcripts are available, there is no recorded legislative debate or vote-based sentiment in the provided materials. Based on the bill’s content, its overall policy direction is strongly pro-worker and pro-enforcement, with benefits aimed at low-wage workers, tipped workers, young workers, and EITC recipients. The main likely points of contention are the size and pace of the wage increase, the elimination of subminimum wages and special certificates, the higher tipped wage requirement, and the compliance and cost impacts on employers, especially in hospitality and other low-margin industries.
The bill would amend the Fair Labor Standards Act of 1938 to establish a higher federal minimum wage, create a new wage-indexing mechanism tied to median hourly wage growth, revise tipped wage rules, and phase out or eliminate several subminimum wage provisions. It would also increase FLSA civil penalties, protect Wage and Hour Division investigators from reductions in force, and authorize federal grants to state, local, and tribal governments for wage-law enforcement and education. Separately, it would amend the Internal Revenue Code to expand and make permanent certain Earned Income Tax Credit enhancements for low-income workers and families.
No committee transcript or vote record is available, so there is no direct evidence of support or opposition in the provided history. The bill’s structure and title indicate a clear pro-labor, pro-wage-increase policy approach, suggesting support from worker advocates and likely opposition from employer groups concerned about labor costs, tipped-wage changes, and the elimination of subminimum wage categories. The hospitality-specific advisory committee also suggests the bill is attentive to industry concerns, but the overall sentiment embedded in the text is strongly favorable to workers and enforcement.
The most likely points of contention are the minimum wage increase itself, the automatic wage indexing formula, and the higher tipped wage floor, all of which could raise payroll costs for employers. Employers in hospitality, restaurants, and entertainment may also object to the elimination of tip credits, the prohibition on retaining tips, and the eventual end of special certificate wages under section 14(c). Disability advocates and employers may disagree over the phaseout of subminimum wages for workers with disabilities, while supporters are likely to emphasize fairness and wage equity. The EITC expansion is likely less controversial, but its fiscal effects and eligibility changes could still draw scrutiny.