Not all companies are going to decrease wages in response to this legislation. In fact I'd be willing to bet it's less than 50% of companies. Right now we are already in a huge labor shortage because employers aren't paying enough to attract the workers they need. Companies that don't decrease wages in this situation will out-compete companies that do decrease wages if the primary scarce resource right now is workers.

This is similar to what's happening right now with companies that try to do locality adjustments for remote workers -- they get out-competed by companies willing to pay full price regardless of location. Eventually this will cause locality adjustments to vanish completely imo.