Fair Wage Act of 2023

HR 6722, the Fair Wage Act of 2023, replaces the fixed federal minimum wage with a location-based rate adjusted for local cost of living. It sets the minimum wage as 40% of the national average hourly wage (increasing to 50% over five years) multiplied by a regional cost-of-living factor, creating different rates for metropolitan areas and rural regions. The bill also establishes a new minimum cash wage for tipped workers at 30% of the local minimum wage and sets a lower minimum for workers under 18 at two-thirds of the local rate. This bill directly affects all employers and low-wage workers across the U.S., with rates varying by geographic location based on regional economic data.