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119-hr-3438119th CongressWALLET

Fair Wage Act of 2025

Sponsored By: Representative Fitzpatrick, Brian K. [R-PA-1]

Introduced

Summary

Establishes a cost-of-living based federal minimum wage that is phased in and adjusted by region. The bill would tie area minimums to a share of the national average hourly wage for private sector non-supervisory workers from the Bureau of Labor Statistics and scale rates using Bureau of Economic Analysis regional price parity.

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  • Workers and households: Would set each area's wage initially at 40% of the national average hourly wage for private sector non-supervisory workers and rise to 50% after two years. Rates are recalculated on a three-year cycle and use metropolitan statistical areas and aggregated nonmetropolitan portions.
  • Tipped employees: Would require a minimum cash wage for tipped employees equal to 30% of the area wage, tying tip cash floors to the regional schedule.
  • Young and newly hired workers: Would set the wage for newly hired employees aged 18 or younger at two-thirds of the area's minimum wage and update age references for youth and young adults.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Region-based minimum wage for workers

If enacted, this bill would set a federal minimum wage by metro area and each state's non‑metro area, based on a share of the national average hourly pay and adjusted for local prices. It would start at 40% on the effective date, rise to 45% in one year, and 50% in two years. Starting five years in, it would be reset every three years and could not fall below the prior level. Tipped workers’ cash wage would be 30% of the area wage. Newly hired workers who are 18 or younger could be paid no less than two‑thirds of the area wage. The rule would start on the first day of the third month after enactment.

Sponsors & CoSponsors

Sponsor

Fitzpatrick, Brian K. [R-PA-1]

PA • R

Cosponsors

  • Rep. Perez, Marie Gluesenkamp [D-WA-3]

    WA • D

    Sponsored 5/15/2025

  • Rep. Bresnahan, Robert P. [R-PA-8]

    PA • R

    Sponsored 8/29/2025

Roll Call Votes

No roll call votes available for this bill.

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