Fair Wage Act of 2019

To amend the Fair Labor Standards Act of 1938 to provide for a Federal, cost-of-living based minimum wage, and for other purposes. 1. Short title This Act may be cited as the Fair Wage Act of 2019 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) (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 (h) Determination of minimum wage (1) (A) On the effective date of the Fair Wage Act of 2019, 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 40 percent (C) Not later than 2 years after such effective date, subparagraph (A)(i)(I) shall be applied by substituting 50 percent 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 (B) The term nonmetropolitan portion (C) The term regional price parity . 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) the cash wage required to be paid such an employee on the date of the enactment of this paragraph 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 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) (1) in paragraph (1), by striking a wage which is not less than $4.25 an hour 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 (2) in paragraph (5)— (A) by striking has not attained the age of 20 years is the age of 18 years or younger (B) by striking 25 years 24 years or younger 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.

Summary: Fair Wage Act of 2019 This bill phases in increases in the federal minimum wage based on the metropolitan statistical area or the nonmetropolitan portion in which an employer resides, adjusted to account for the cost-of-living in such area. In determining the cash wage any employer is required to pay a tipped employee, such wage shall be no less than the amount equal to 30% of the federal minimum wage determined for the metropolitan statistical area or the nonmetropolitan portion in which the employer resides. Any employer may pay a newly hired employee who is 18 years of age or younger, or in the case of the wage that applies in Puerto Rico 24 years of age or younger, during the first 90 consecutive days after the employee's initial employment, a wage which is not less than 2/3 of the federal minimum wage determined for the metropolitan statistical area or the nonmetropolitan portion in which the employer resides.