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Fair Wage Act: Regional Minimum Wage Based on Cost of Living

This act introduces a new method for determining the minimum wage, which will vary by region, taking into account local living costs. This means that the minimum wage will be adjusted to the specifics of a given area, potentially affecting citizens' purchasing power across different parts of the country. Changes also apply to wages for tipped employees and young workers.
Key points
The minimum wage will be set regionally, based on the national average wage and local cost of living, aiming for fairer compensation.
The minimum wage will gradually increase over five years, reaching 50% of the national average wage, with further reviews every three years.
The minimum cash wage for tipped employees will be set at 30% of the regional minimum wage.
Younger employees (18 years old or younger) may receive 2/3 of the regional minimum wage, potentially impacting their employment opportunities.
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Additional Information
Print number: 118_HR_6722
Sponsor: Rep. Fitzpatrick, Brian K. [R-PA-1]
Process start date: 2023-12-12