1. Short title This Act may be cited as the Fair Wage Act of 2023 . 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 2023 , 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)