H.R.5970
Estate Tax and Extension of Tax Relief Act of
2006 (Considered and Passed by House)
TITLE
IV--INCREASE IN MINIMUM WAGE
SEC.
401. MINIMUM WAGE.
Section 6(a)(1) of the Fair Labor Standards Act
of 1938 (29 U.S.C. 206(a)(1)) is amended to read
as follows:
(1) except as otherwise provided in this section,
not less than--
-
(A) $5.15 an hour beginning September 1, 1997;
-
(B) $5.85 an hour, beginning on January 1, 2007;
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(C) $6.55 an hour, beginning June 1, 2008; and
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(D) $7.25 an hour, beginning June 1, 2009;'.
SEC.
402. TIPPED WAGE FAIRNESS.
Section 3(m) of the Fair Labor Standards Act of
1938 (29 U.S.C. 203(m)) is amended--
(1)
by redesignating paragraphs (1) and (2) as subparagraphs
(A) and (B), respectively;
(2)
by striking `Wage' paid to any employee' and inserting
`(1) `Wage' paid to any employee';
(3)
in subparagraph (B) (as so redesignated), by inserting
before the period the following: `: Provided,
That the tips shall not be included as part of
the wage paid to an employee to the extent that
they are excluded therefrom under the terms of
a bona fide collective bargaining agreement applicable
to the particular employee'; and
(4)
by adding at the end of the following:
(2) Notwithstanding any other provision of this
Act, any State or political subdivision of a State
which on or after the date of enactment of the
Estate Tax and Extension of Tax Relief Act of
2006 excludes all of a tipped employee's tips
from being considered as wages in determining
if such tipped employee has been paid the applicable
minimum wage rate, may not establish or enforce
the minimum wage rate provisions of such law,
ordinance, regulation, or order in such State
or political subdivision thereof with respect
to tipped employees unless such law, ordinance,
regulation, or order is revised or amended to
permit such employee to be paid a wage by the
employee's employer in an amount not less than
an amount equal to--
-
(A) the cash wage paid such employee which is
required under such law, ordinance, regulation,
or order on the date of enactment of the Estate
Tax and Extension of Tax Relief Act of 2006;
and
-
(B) an additional amount on account of tips
received by such employee which amount is equal
to the difference between the cash wage described
in subparagraph (A) and the minimum wage rate
in effect under such law, ordinance, regulation,
or order, or the minimum wage rate in effect
under section 6(a), whichever is higher.'
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