1 | 1 | | 84R2345 MAW-D |
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2 | 2 | | By: McClendon H.B. No. 396 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the state minimum wage, including adjustments based on |
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8 | 8 | | the consumer price index and authorization for a county or |
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9 | 9 | | municipality to establish a local minimum wage. |
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10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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11 | 11 | | SECTION 1. Section 62.051, Labor Code, is amended to read as |
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12 | 12 | | follows: |
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13 | 13 | | Sec. 62.051. MINIMUM WAGE. (a) In this section: |
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14 | 14 | | (1) "Adjusted minimum wage" means the minimum wage as |
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15 | 15 | | calculated under Subsection (d). |
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16 | 16 | | (2) "Consumer price index" means the Consumer Price |
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17 | 17 | | Index for Urban Wage Earners and Clerical Workers (CPI-W), |
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18 | 18 | | published by the Bureau of Labor Statistics of the United States |
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19 | 19 | | Department of Labor. |
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20 | 20 | | (b) This section applies only to wages paid to an employee |
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21 | 21 | | who is subject to the minimum wage provisions of the Fair Labor |
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22 | 22 | | Standards Act of 1938 (29 U.S.C. Section 201 et seq.). |
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23 | 23 | | (c) Except as provided by Sections 62.052 and [Section] |
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24 | 24 | | 62.057, an employer shall pay to each employee not less than the |
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25 | 25 | | greater of: |
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26 | 26 | | (1) the adjusted minimum wage; or |
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27 | 27 | | (2) the federal minimum wage under Section 6, Fair |
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28 | 28 | | Labor Standards Act of 1938 (29 U.S.C. Section 206). |
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29 | 29 | | (c-1) This subsection applies to wages paid by an employer |
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30 | 30 | | for the 2016 and 2017 calendar years. Subsection (c) does not apply |
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31 | 31 | | in a year to which this subsection applies. Except as provided by |
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32 | 32 | | Sections 62.052 and 62.057: |
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33 | 33 | | (1) for the 2016 calendar year, an employer shall pay |
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34 | 34 | | to each employee not less than the greater of: |
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35 | 35 | | (A) $8.75 an hour; or |
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36 | 36 | | (B) the federal minimum wage under Section 6, |
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37 | 37 | | Fair Labor Standards Act of 1938 (29 U.S.C. Section 206); and |
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38 | 38 | | (2) for the 2017 calendar year, an employer shall pay |
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39 | 39 | | to each employee not less than the greater of: |
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40 | 40 | | (A) $10.10 an hour; or |
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41 | 41 | | (B) the federal minimum wage under Section 6, |
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42 | 42 | | Fair Labor Standards Act of 1938 (29 U.S.C. Section 206). |
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43 | 43 | | (c-2) Subsection (c-1) and this subsection expire January |
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44 | 44 | | 1, 2018. |
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45 | 45 | | (d) Not later than September 30 of each year, the commission |
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46 | 46 | | shall calculate, to the nearest cent, the adjusted minimum wage to |
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47 | 47 | | be paid for the next calendar year, if applicable, by increasing the |
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48 | 48 | | adjusted minimum wage for that calendar year by the percentage |
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49 | 49 | | increase, if any, in the consumer price index, for the 12-month |
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50 | 50 | | period that ends on August 31 preceding the calculation. |
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51 | 51 | | (e) The adjusted minimum wage may not be decreased under |
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52 | 52 | | this section on the basis of any decrease in the consumer price |
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53 | 53 | | index. |
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54 | 54 | | (f) A reference in this code or another law to the minimum |
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55 | 55 | | wage established by state law means the adjusted minimum wage. |
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56 | 56 | | SECTION 2. Section 62.0515, Labor Code, is amended to read |
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57 | 57 | | as follows: |
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58 | 58 | | Sec. 62.0515. [APPLICATION OF] MINIMUM WAGE ESTABLISHED BY |
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59 | 59 | | [TO] CERTAIN GOVERNMENTAL ENTITIES; CERTAIN AGREEMENTS WITH |
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60 | 60 | | GOVERNMENTAL ENTITIES. (a) A municipality may adopt a minimum wage |
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61 | 61 | | that is greater than the minimum wage established by Section 62.051 |
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62 | 62 | | to be paid by an employer to each employee for services performed in |
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63 | 63 | | the municipality. A county may adopt a minimum wage that is greater |
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64 | 64 | | than the minimum wage established by Section 62.051 to be paid by an |
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65 | 65 | | employer to each employee for services performed in the |
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66 | 66 | | unincorporated areas of the county, including areas located within |
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67 | 67 | | the extraterritorial jurisdiction of a municipality. [Except as |
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68 | 68 | | otherwise provided by this section, the minimum wage provided by |
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69 | 69 | | this chapter supersedes a wage established in an ordinance, order, |
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70 | 70 | | or charter provision governing wages in private employment, other |
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71 | 71 | | than wages under a public contract.] |
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72 | 72 | | (b) [This section does not apply to any state or federal job |
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73 | 73 | | training or workforce development program. |
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74 | 74 | | [(c) This section does not apply to a minimum wage |
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75 | 75 | | established by a governmental entity that applies to a contract or |
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76 | 76 | | agreement, including a non-annexation agreement, entered into by a |
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77 | 77 | | governmental entity and a private entity.] A private entity that |
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78 | 78 | | enters into a contract or agreement, including a non-annexation |
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79 | 79 | | agreement, with a governmental entity, under the terms of which the |
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80 | 80 | | private entity agrees to comply with a minimum wage that is greater |
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81 | 81 | | than the minimum wage established by Section 62.051 or, if |
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82 | 82 | | applicable, Subsection (a) of this section [the governmental |
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83 | 83 | | entity], is subject to the terms of that contract or agreement, and |
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84 | 84 | | those terms apply to and may be enforced against a general |
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85 | 85 | | contractor, subcontractor, developer, and other person with which |
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86 | 86 | | the private entity contracts in order to comply with the provisions |
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87 | 87 | | of the original contract or agreement. |
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88 | 88 | | [(d)] For purposes of this subsection [section], |
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89 | 89 | | "governmental entity" includes a municipality, a county, a special |
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90 | 90 | | district or authority, a junior college district, or another |
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91 | 91 | | political subdivision of this state. |
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92 | 92 | | SECTION 3. Subchapter D, Chapter 62, Labor Code, is amended |
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93 | 93 | | by adding Section 62.162 to read as follows: |
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94 | 94 | | Sec. 62.162. CERTAIN SMALL BUSINESSES. An employer that |
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95 | 95 | | employs fewer than 26 employees is exempt from this chapter. |
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96 | 96 | | SECTION 4. Section 62.151, Labor Code, is repealed. |
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97 | 97 | | SECTION 5. Not later than September 30, 2017, the Texas |
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98 | 98 | | Workforce Commission shall determine the first increase in the |
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99 | 99 | | adjusted minimum wage, if any, as required by Section 62.051(d), |
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100 | 100 | | Labor Code, as added by this Act. For purposes of that computation, |
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101 | 101 | | the adjusted minimum wage for the 2017 calendar year is $10.10 an |
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102 | 102 | | hour. |
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103 | 103 | | SECTION 6. This Act takes effect January 1, 2016. |
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