Texas 2015 - 84th Regular

Texas House Bill HB396 Compare Versions

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11 84R2345 MAW-D
22 By: McClendon H.B. No. 396
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the state minimum wage, including adjustments based on
88 the consumer price index and authorization for a county or
99 municipality to establish a local minimum wage.
1010 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1111 SECTION 1. Section 62.051, Labor Code, is amended to read as
1212 follows:
1313 Sec. 62.051. MINIMUM WAGE. (a) In this section:
1414 (1) "Adjusted minimum wage" means the minimum wage as
1515 calculated under Subsection (d).
1616 (2) "Consumer price index" means the Consumer Price
1717 Index for Urban Wage Earners and Clerical Workers (CPI-W),
1818 published by the Bureau of Labor Statistics of the United States
1919 Department of Labor.
2020 (b) This section applies only to wages paid to an employee
2121 who is subject to the minimum wage provisions of the Fair Labor
2222 Standards Act of 1938 (29 U.S.C. Section 201 et seq.).
2323 (c) Except as provided by Sections 62.052 and [Section]
2424 62.057, an employer shall pay to each employee not less than the
2525 greater of:
2626 (1) the adjusted minimum wage; or
2727 (2) the federal minimum wage under Section 6, Fair
2828 Labor Standards Act of 1938 (29 U.S.C. Section 206).
2929 (c-1) This subsection applies to wages paid by an employer
3030 for the 2016 and 2017 calendar years. Subsection (c) does not apply
3131 in a year to which this subsection applies. Except as provided by
3232 Sections 62.052 and 62.057:
3333 (1) for the 2016 calendar year, an employer shall pay
3434 to each employee not less than the greater of:
3535 (A) $8.75 an hour; or
3636 (B) the federal minimum wage under Section 6,
3737 Fair Labor Standards Act of 1938 (29 U.S.C. Section 206); and
3838 (2) for the 2017 calendar year, an employer shall pay
3939 to each employee not less than the greater of:
4040 (A) $10.10 an hour; or
4141 (B) the federal minimum wage under Section 6,
4242 Fair Labor Standards Act of 1938 (29 U.S.C. Section 206).
4343 (c-2) Subsection (c-1) and this subsection expire January
4444 1, 2018.
4545 (d) Not later than September 30 of each year, the commission
4646 shall calculate, to the nearest cent, the adjusted minimum wage to
4747 be paid for the next calendar year, if applicable, by increasing the
4848 adjusted minimum wage for that calendar year by the percentage
4949 increase, if any, in the consumer price index, for the 12-month
5050 period that ends on August 31 preceding the calculation.
5151 (e) The adjusted minimum wage may not be decreased under
5252 this section on the basis of any decrease in the consumer price
5353 index.
5454 (f) A reference in this code or another law to the minimum
5555 wage established by state law means the adjusted minimum wage.
5656 SECTION 2. Section 62.0515, Labor Code, is amended to read
5757 as follows:
5858 Sec. 62.0515. [APPLICATION OF] MINIMUM WAGE ESTABLISHED BY
5959 [TO] CERTAIN GOVERNMENTAL ENTITIES; CERTAIN AGREEMENTS WITH
6060 GOVERNMENTAL ENTITIES. (a) A municipality may adopt a minimum wage
6161 that is greater than the minimum wage established by Section 62.051
6262 to be paid by an employer to each employee for services performed in
6363 the municipality. A county may adopt a minimum wage that is greater
6464 than the minimum wage established by Section 62.051 to be paid by an
6565 employer to each employee for services performed in the
6666 unincorporated areas of the county, including areas located within
6767 the extraterritorial jurisdiction of a municipality. [Except as
6868 otherwise provided by this section, the minimum wage provided by
6969 this chapter supersedes a wage established in an ordinance, order,
7070 or charter provision governing wages in private employment, other
7171 than wages under a public contract.]
7272 (b) [This section does not apply to any state or federal job
7373 training or workforce development program.
7474 [(c) This section does not apply to a minimum wage
7575 established by a governmental entity that applies to a contract or
7676 agreement, including a non-annexation agreement, entered into by a
7777 governmental entity and a private entity.] A private entity that
7878 enters into a contract or agreement, including a non-annexation
7979 agreement, with a governmental entity, under the terms of which the
8080 private entity agrees to comply with a minimum wage that is greater
8181 than the minimum wage established by Section 62.051 or, if
8282 applicable, Subsection (a) of this section [the governmental
8383 entity], is subject to the terms of that contract or agreement, and
8484 those terms apply to and may be enforced against a general
8585 contractor, subcontractor, developer, and other person with which
8686 the private entity contracts in order to comply with the provisions
8787 of the original contract or agreement.
8888 [(d)] For purposes of this subsection [section],
8989 "governmental entity" includes a municipality, a county, a special
9090 district or authority, a junior college district, or another
9191 political subdivision of this state.
9292 SECTION 3. Subchapter D, Chapter 62, Labor Code, is amended
9393 by adding Section 62.162 to read as follows:
9494 Sec. 62.162. CERTAIN SMALL BUSINESSES. An employer that
9595 employs fewer than 26 employees is exempt from this chapter.
9696 SECTION 4. Section 62.151, Labor Code, is repealed.
9797 SECTION 5. Not later than September 30, 2017, the Texas
9898 Workforce Commission shall determine the first increase in the
9999 adjusted minimum wage, if any, as required by Section 62.051(d),
100100 Labor Code, as added by this Act. For purposes of that computation,
101101 the adjusted minimum wage for the 2017 calendar year is $10.10 an
102102 hour.
103103 SECTION 6. This Act takes effect January 1, 2016.