Bill · H.R. 3438· House(119-HR-3438)
Fair Wage Act of 2025
- Introduced
- 5/15/2025
- Last activity
- 5/15/2025 — Referred to the House Committee on Education and Workforce.
- Sponsored by
- Brian Fitzpatrick
- Cosponsors
- - 1 - 1
- Introduced
- In Committee
What this bill would do
The Fair Wage Act of 2025 seeks to amend the Fair Labor Standards Act of 1938 to implement a cost-of-living based minimum wage. This new system calculates wages based on a percentage of the national average hourly wage of private sector, non-supervisory workers and an adjustment percentage tied to regional price parity. The bill establishes specific regional wage determinations for metropolitan statistical areas and nonmetropolitan portions. It also adjusts the minimum cash wage required for tipped employees. Additionally, the bill changes the minimum wage requirements for employees aged 18 or younger. These changes are scheduled to take effect on the first day of the third month following the Act's enactment.
Yes· 3 of 5
Would households on low incomes be better off under this?+7
The bill increases wages for low-income workers through a cost-of-living adjustment mechanism.
Does this raise the lowest wage an employer may pay?+7
The bill implements a new cost-of-living based minimum wage formula that scales upward over time.
Is this likely to lift people out of poverty?+5
By increasing the minimum wage based on cost-of-living, the bill aims to lift low-income workers out of poverty.
The opposite
Would business owners be better off under this?-4
The bill increases labor costs for employers through higher minimum wage requirements.
Who it would affect, and how
Potential Positive Impacts for People
-
Regional Wage Adjustments: The bill implements a wage determination based on the employer's location, using a regional price parity adjustment that ranges from 87.5 percent to 115 percent (Section 2, subsection (b)(2)). This could ensure wages reflect local economic conditions.
-
Increasing Wage Percentages: The formula for calculating the wage increases over time, moving from 40 percent to 45 percent after one year and to 50 percent after two years (Section 2, subsection (b)(1)(A)(I)).
-
Wage Protection: After five years, the wage will be the greater of the amount determined by the new formula or the wage from the preceding three-year period (Section 2, subsection (b)(1)(D)).
-
Updated Tipped Employee Wages: The minimum cash wage for tipped employees will be set at 30 percent of the wage determined for the area in which the employer resides (Section 3).
-
Adjusted Minimums for Young Workers: The minimum wage for employees 18 years or younger is changed from a flat $4.25 an hour to 2/3 of the wage determined for their specific area (Section 4).
Potential Negative Impacts for People
-
Changes to Young Worker Wages: The bill replaces the fixed $4.25 an hour minimum wage for certain young workers with a calculation of 2/3 of the local determined wage (Section 4).
-
Changes to Tipped Employee Wages: The cash wage for tipped employees is tied to 30 percent of the wage determined under the new regional calculations (Section 3).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+7Good For Young Adults+4Good For Business Owners-4
- Economy And Finance
- Increases Minimum Wage+7
- Social Issues And Justice
- Improves Poverty Reduction+5
- Governance And Ideology
- Increases Federal Power+3
- 8/29/2025
- 1 Cosponsor added.
- 5/15/2025
- Referred to the House Committee on Education and Workforce.
- 1 Cosponsor added.
- Introduced in House
Robert BresnahanRepublican · Pennsylvania
Marie PerezDemocrat · Washington