119-hr3438

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3438 Introduced in House

    (IH) ]

<DOC>

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.

_______________________________________________________________________

 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

_______________________________________________________________________

 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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