The Fair Wage Act of 2025: A New Era for Minimum Wage
Introduced by Representative Fitzpatrick (for himself and Ms. Perez) in May 2025, this bill aims to amend the Fair Labor Standards Act of 1938 to provide a Federal, cost-of-living based minimum wage.
Section 1: Short Title
This Act may be cited as the ‘‘Fair Wage Act of 2025’’.
Section 2: Cost-of-Living Based Minimum Wage
(a) In general. — 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 the amount determined by the Secretary under subsection (h) for the metropolitan statistical area or the nonmetropolitan portion in which the employer resides;’’.
Regional Minimum Wage Determination
Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) is amended by adding at the end the following:
‘‘(h) Determination of minimum wage. —’’.
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‘‘(1)(A) On the effective date of the Fair Wage Act of 2025, the wage determined under this paragraph for a metropolitan statistical area or nonmetropolitan portion shall be equal to the result obtained—’’.
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‘‘(i) by multiplying—’’
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‘‘(I) 40 percent of the national average hourly wage of private sector, non-supervisory workers (as reported by the Bureau of Labor Statistics of the Department of Labor for the most recent month for which data are available); by’’
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‘‘(II) the adjustment percentage specified in paragraph (2) for the area or portion; and’’
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‘‘(ii) by rounding the result obtained under clause (i) to the nearest tenth of a dollar.’’.
Adjustment Percentages
The adjustment percentage specified in this paragraph for a metropolitan statistical area or nonmetropolitan portion shall be—’’
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‘‘(A) 87.5 percent, for a metropolitan statistical area or nonmetropolitan portion with a regional price parity of less than 90;’’
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‘‘(B) 92.5 percent, for a metropolitan statistical area or nonmetropolitan portion with a regional price parity of less than 95, but not less than 90;’’
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‘‘(C) 100 percent, for a metropolitan statistical area or nonmetropolitan portion with a regional price parity of less than 105, but not less than 95;’’
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‘‘(D) 107.5 percent, for a metropolitan statistical area or nonmetropolitan portion with a regional price parity of less than 110, but not less than 105; and’’
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‘‘(E) 115 percent, for a metropolitan statistical area or nonmetropolitan portion with a regional price parity of not less than 110.’’.
Minimum Cash Wage for Tipped Employees
Clause (i) of section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)) is amended by striking ‘‘the cash wage required to be paid such an employee on the date of the enactment of this paragraph’’ and inserting ‘‘an amount equal to 30 percent of the wage determined under section 6(a)(1) for the metropolitan statistical area or the nonmetropolitan portion in which the employer resides.’’.
Minimum Wage for Newly Hired Employees who are 18 Years Old or Younger
Section 6(g) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(g)) is amended—’’
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‘‘(1) in paragraph (1), by striking ‘‘a wage which is not less than $4.25 an hour’’ and inserting ‘‘a wage which is not less than 2/3 of the wage determined under subsection (a)(1) for the metropolitan statistical area or the nonmetropolitan portion in which the employer resides’’; and’’
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‘‘(2) in paragraph (5)—’’
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‘‘(A) by striking ‘‘has not attained the age of 20 years’’ and inserting ‘‘is the age of 18 years or younger’’; and’’
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‘‘(B) by striking ‘‘25 years’’ and inserting ‘‘24 years or younger.’’.
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