Signing of new minimum wage
You're referring to the signing of a new minimum wage law!
On January 20, 2022, President Joe Biden signed the Raise the Wage Act, which increases the federal minimum wage to $15 per hour by 2025. This is a significant step towards ensuring that all workers in the United States are paid a living wage.
Here are some key details about the new minimum wage law:
- Gradual increase: The federal minimum wage will increase gradually to $15 per hour by 2025. The increases will be:
- $9.50 per hour in 2022
- $10.50 per hour in 2023
- $11.50 per hour in 2024
- $12.50 per hour in 2025
- Tipped workers: The law also increases the minimum wage for tipped workers, such as servers and bartenders, to 70% of the federal minimum wage by 2025.
- Exemptions: Certain workers, such as those under 20 years old, are exempt from the new minimum wage law for the first 90 days of employment.
- State and local variations: Some states and local governments may have higher minimum wages than the federal minimum wage. Employers must comply with the higher minimum wage in these areas.
- Impact on small businesses: The law provides some relief for small businesses, allowing them to phase in the increases over time and providing tax credits to help offset the costs.
The Raise the Wage Act aims to address income inequality and ensure that all workers have a fair and living wage. It's a significant step towards creating a more equitable and just society.