New $17 Minimum Wage Bill Sparks Debate as Teen Jobs Hang in the Balance

When Congress introduced the Raise the Wage Act of 2025 on April 8, 2025, few expected it to reignite a decades-old argument with such sharp edges. The bill, co-sponsored in both the U.S. House and Senate, would lift the federal minimum wage from $7.25—an amount unchanged since 2009—to $17 an hour by 2030. That’s more than a doubling. And while Economic Policy Institute estimates 22.2 million workers would see higher pay, the real tension lies not in the broad economic impact, but in the quiet corners where teenagers look for their first paycheck.

Who Actually Benefits?

Here’s the twist: only about 13% of those gaining from the raise are teens. More than 60% of affected workers are at least 25 years old, according to the National Women’s Law Center. In fact, one in five working mothers—nearly 30% of single moms—would get a raise under the $17 floor. That’s not a small detail. It means the bill isn’t really about high schoolers flipping burgers. It’s about single parents juggling three jobs, caregivers making $12 an hour at nursing homes, and kitchen workers who’ve been stuck at the same rate for a decade.

Still, the fear lingers. What happens to the 16-year-old who counted on that Saturday shift at the gas station? Or the 17-year-old hoping to save for college by working summers?

The Research Behind the Fear—and the Hope

Economists at the University of California, Berkeley, led by Michael Reich, have spent years studying this exact question. Their analysis, drawn from decades of state-level wage hikes, found that a 10% increase in the minimum wage reduces teen employment by between 0.5% and zero percent. In plain terms: no meaningful drop.

"The wage gains for low-wage teens would exceed the loss in the number of jobs," Reich wrote in his 2021 report. And here’s why: in low-wage labor markets, turnover is sky-high. Workers quit. Employers replace them. Unemployment spells are short. A teen who loses a job might be back at another restaurant by next month. Or maybe they land something better—a warehouse gig with benefits, or a paid internship.

What’s often ignored? The ripple effects. A 2020 study by Borgschulte and Cho found that when older workers earn more, they delay retirement. That means more experienced workers stay on the job, creating mentorship opportunities—and yes, sometimes fewer entry-level slots. But Godoey, Reich, and Wursten’s forthcoming research adds another layer: higher wages make childcare more affordable. That means more low-income mothers return to work. That’s not just about paychecks. It’s about economic mobility.

States Are Already Ahead of Washington

While Congress debates, local governments are moving fast. By the end of 2025, 88 jurisdictions—23 states and 65 cities and counties—will have raised their minimum wages. Fifty-three of them will hit or exceed $17. In King County, Washington, large employers will pay $20.29 an hour starting January 1. In Burien, Washington, the local minimum hits $21.16 for top-tier employers. These aren’t theoretical experiments. They’re real-world labs.

And the results? In states like California and New York, teen unemployment hasn’t spiked. In fact, in some cases, it’s dipped. Why? Because employers adapt. They raise prices slightly. They cut hours, not heads. They invest in automation—not to replace teens, but to reduce the grind so they can pay better.

The Hidden Exemptions That Must Go

The Raise the Wage Act of 2025 doesn’t just raise the floor. It kills loopholes. For decades, employers could legally pay tipped workers as little as $2.13 an hour. People with disabilities? Sometimes under $1 an hour. Teens? Some states let employers pay 85% of the minimum wage for the first 90 days. That’s not a training wage. It’s exploitation dressed up as policy.

The bill ends all of that. By 2030, every worker covered by the Fair Labor Standards Act gets the same minimum. No exceptions. That’s why Economic Policy Institute projects $70 billion in new annual wages. That’s not inflation. That’s justice.

What’s Next? The Automatic Adjustment Clause

Here’s what most people miss: after 2030, the minimum wage won’t stay frozen. The bill ties future increases to median wage growth. That’s huge. Since 2009, inflation has eaten away $3.50 from the value of $7.25. If this law passes, we won’t be back here in 2035, arguing about another decade of stagnation.

Business groups warn of layoffs. Labor advocates point to rising productivity. The truth? Neither side has all the answers. But the data from 20+ states shows that wage hikes don’t cause economic collapse. They shift power. And sometimes, that’s exactly what’s needed.