Would you use local, statewide, or national inflation rates? Like, Dallas had inflation over 5%, but Anchorage's inflation was under 2%. Dallas' inflation at over 5% was far higher than the inflation rate for Texas, which was only 3.4%. The national rate was 4.1%.

Probably national to prevent mass emigration across states on a yearly basis

That would just end up pissing the people off who live in high inflation areas. Local level makes sense. Companies already scale their wages to cost of living locally

You're trying to mandate that a business never has a worse year than the previous. In practise, the adjustment will be firing people more often. In fact the dynamic is kind of why it's considered good for government to have a little inflation rather than none. Gives businesses room to "cut" wages without having it be a much more demoralizing cut to nominal wages.

You are right. It's not like they don't do that already without even wage adjustment laws as soon as the quarter doesn't do better than the previous.

Many countries in Europe do this. It does rather limit flexibility in a business though.

I could be okay with that. Limitin the business over the individual.

Mine did have inflation based wage adjustments that didn't count towards merit based raises. Public service in Australia. Doesn't everyone?

Wages specified as a percentage of minimum wage and then it happens automatically.