- Emergency Consultation Services
- FMG BlogLine
By: Brad Adler
Recently, the Fair Minimum Wage Act of 2012 was introduced in Congress. This legislation would raise the federal minimum wage in three 85-cent steps from its current $7.25 an hour to $9.80 by the end of 2014. This act also would increase the required cash wage for tipped workers in similar annual 85-cent increases, from today’s $2.13 per hour until the tip credit reaches 70 percent of the regular minimum wage. If passed, the minimum wage would increase to $8.10 an hour 90 days after date of passage. One year later, the second 85-cent bump would go into effect, raising the wage to $8.95 an hour. The following year, it would raise another 85 cents to $9.80 and increase annually afterward, depending on inflation.