There's already all kinds of incentives for companies to outsource the lowest end of the employment scale. A law like this would make it standard practice.
CEO's and executives are going to get their high-end pay. If they don't, some other company that's willing to pay more will get the good talent. Plain old competition. (You can dislike it all you want- that's what's going to happen.) The only way to keep the high-end pay is to get rid of the lowest level of the org chart. It's easy, and it's been done. A lot.
If you thought outsourcing make it hard to get a first job out of college, just wait until this kicks in. You'll have to work overseas just to get enough experience to qualify for the new "entry level" job here.
Dumb idea. Really, really dumb.