[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3438 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 3438
To amend the Fair Labor Standards Act of 1938 to provide for a Federal,
cost-of-living based minimum wage, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
May 15, 2025
Mr. Fitzpatrick (for himself and Ms. Perez) introduced the following
bill; which was referred to the Committee on Education and Workforce
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A BILL
To amend the Fair Labor Standards Act of 1938 to provide for a Federal,
cost-of-living based minimum wage, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fair Wage Act of 2025''.
SEC. 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;''.
(b) Determination of Regional Minimum Wage.--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.--
``(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--
``(i) by multiplying--
``(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
``(II) the adjustment percentage specified
in paragraph (2) for the area or portion; and
``(ii) by rounding the result obtained under clause
(i) to the nearest tenth of a dollar.
``(B) Not later than 1 year after such effective date,
subparagraph (A)(i)(I) shall be applied by substituting `45
percent' for `40 percent'.
``(C) Not later than 2 years after such effective date,
subparagraph (A)(i)(I) shall be applied by substituting `50
percent' for `40 percent'.
``(D) Not later than 5 years after such effective date, and
for each 3-year period thereafter, the wage determined under
this paragraph for a metropolitan statistical area or
nonmetropolitan portion shall be equal to the greater of--
``(i) the result obtained under subparagraph (C);
or
``(ii) the wage determined under this paragraph for
such area or portion for the preceding three-year
period.
``(2) The adjustment percentage specified in this paragraph
for a metropolitan statistical area or nonmetropolitan portion
shall be--
``(A) 87.5 percent, for a metropolitan statistical
area or nonmetropolitan portion with a regional price
parity of less than 90;
``(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;
``(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;
``(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
``(E) 115 percent, for a metropolitan statistical
area or nonmetropolitan portion with a regional price
parity of not less than 110.
``(3) In this subsection:
``(A) The term `metropolitan statistical area'
means a geographic area, defined by the Office of
Management and Budget for statistical purposes,
containing a large population nucleus and adjacent
communities having a high degree of social and economic
integration with that nucleus.
``(B) The term `nonmetropolitan portion' means any
county (or portion thereof) which is not within a
metropolitan statistical area. All nonmetropolitan
portions of a State shall be treated, in aggregate, as
a single nonmetropolitan portion for the State.
``(C) The term `regional price parity' means the
regional price parity for a metropolitan statistical
area or nonmetropolitan portion determined by the
Bureau of Economic Analysis of the Department of
Commerce for the most recent year for which data are
available. In determining regional price parities for
purposes of this subsection, the Bureau of Economic
Analysis shall use the same methodology used to
determine such parities for the most recent year for
which such parities were reported by the Bureau before
the date of the enactment of this subsection.''.
SEC. 3. 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''.
SEC. 4. 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--
(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
(2) in paragraph (5)--
(A) by striking ``has not attained the age of 20
years'' and inserting ``is the age of 18 years or
younger''; and
(B) by striking ``25 years'' and inserting ``24
years or younger''.
SEC. 5. EFFECTIVE DATE.
The amendments and repeals made by this Act shall take effect on
the first day of the third month that begins after the date of the
enactment of this Act.
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