Referred to the House Committee on Education and Workforce.
The Fair Wage Act of 2025 amends the Fair Labor Standards Act to create a federal, regionally adjusted minimum wage. The wage is set as a percentage of the national average hourly wage for private-sector, non‑supervisory workers (determined by the Secretary), multiplied by a regional price parity adjustment for each metropolitan statistical area or aggregated nonmetropolitan portion.
Progressives emphasize wage increases and local cost alignment
Relative to its intended legislative type, this bill is a substantive statutory rewrite of the federal minimum-wage rule that is strong on formulaic detail and statutory integration but limited in administrative, fiscal, and accountability scaffolding.
The Fair Wage Act of 2025 amends the Fair Labor Standards Act to create a federal, regionally adjusted minimum wage.
The wage is set as a percentage of the national average hourly wage for private-sector, non‑supervisory workers (determined by the Secretary), multiplied by a regional price parity adjustment for each metropolitan statistical area or aggregated nonmetropolitan portion.
The bill phases the wage percentage from 40% at enactment to 45% within one year and 50% within two years, sets a 30% cash-wage floor for tipped employees (i.e., tip-credit allowed up to 70%), and makes youth and trainee wage provisions a fraction (2/3) of the regional minimum, with some age-threshold changes.
Major, controversial restructuring of wage law with clear stakeholders opposing increased employer costs; phased design helps but likely insufficient alone.
Relative to its intended legislative type, this bill is a substantive statutory rewrite of the federal minimum-wage rule that is strong on formulaic detail and statutory integration but limited in administrative, fiscal, and accountability scaffolding.
Progressives emphasize wage increases and local cost alignment
These are examples from the analysis, not a ranked list of the most-affected groups.
Progressives emphasize wage increases and local cost alignment
Generally supportive because the bill raises baseline pay and ties wages to local costs.
Concerned the tip credit and youth subminimum remain and initial phase-in may be too slow.
Generally favorable toward a regionally calibrated, phased minimum wage but cautious about business impacts and administrative complexity.
Would weigh economic evidence and consider small-business mitigation.
Likely opposed because it expands federal wage mandates, increases labor costs, and creates regionalized federal intervention.
Views it as a constraint on employers and local autonomy.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Major, controversial restructuring of wage law with clear stakeholders opposing increased employer costs; phased design helps but likely insufficient alone.
The bill has not accumulated any surfaced votes yet.
Progressives emphasize wage increases and local cost alignment
Major, controversial restructuring of wage law with clear stakeholders opposing increased employer costs; phased design helps but likely in…
Relative to its intended legislative type, this bill is a substantive statutory rewrite of the federal minimum-wage rule that is strong on formulaic detail and statutory integration but limited in administrative, fiscal…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.