| 1 | 1 | | By: Ortega H.B. No. 840 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to authorization for a county or municipality to establish |
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| 7 | 7 | | a local minimum wage. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 62.0515, Labor Code, is amended to read |
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| 10 | 10 | | as follows: |
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| 11 | 11 | | Sec. 62.0515. [APPLICATION OF] MINIMUM WAGE ESTABLISHED BY |
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| 12 | 12 | | [TO] CERTAIN GOVERNMENTAL ENTITIES; CERTAIN AGREEMENTS WITH |
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| 13 | 13 | | GOVERNMENTAL ENTITIES. (a) Notwithstanding Section 62.151: |
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| 14 | 14 | | (1) a municipality may adopt a minimum wage that is |
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| 15 | 15 | | greater than the minimum wage established by Section 62.051 to be |
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| 16 | 16 | | paid by an employer to each employee for services performed in the |
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| 17 | 17 | | municipality; and |
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| 18 | 18 | | (2) a county may adopt a minimum wage that is greater |
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| 19 | 19 | | than the minimum wage established by Section 62.051 to be paid by an |
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| 20 | 20 | | employer to each employee for services performed in the |
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| 21 | 21 | | unincorporated areas of the county, including areas located within |
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| 22 | 22 | | the extraterritorial jurisdiction of a municipality. [Except as |
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| 23 | 23 | | otherwise provided by this section, the minimum wage provided by |
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| 24 | 24 | | this chapter supersedes a wage established in an ordinance, order, |
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| 25 | 25 | | or charter provision governing wages in private employment, other |
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| 26 | 26 | | than wages under a public contract.] |
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| 27 | 27 | | (b) [This section does not apply to any state or federal job |
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| 28 | 28 | | training or workforce development program. |
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| 29 | 29 | | [(c) This section does not apply to a minimum wage |
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| 30 | 30 | | established by a governmental entity that applies to a contract or |
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| 31 | 31 | | agreement, including a non-annexation agreement, entered into by a |
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| 32 | 32 | | governmental entity and a private entity.] A private entity that |
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| 33 | 33 | | enters into a contract or agreement, including a non-annexation |
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| 34 | 34 | | agreement, with a governmental entity, under the terms of which the |
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| 35 | 35 | | private entity agrees to comply with a minimum wage that is greater |
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| 36 | 36 | | than the minimum wage established by Section 62.051 or, if |
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| 37 | 37 | | applicable, Subsection (a) of this section [the governmental |
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| 38 | 38 | | entity], is subject to the terms of that contract or agreement, and |
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| 39 | 39 | | those terms apply to and may be enforced against a general |
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| 40 | 40 | | contractor, subcontractor, developer, and other person with which |
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| 41 | 41 | | the private entity contracts in order to comply with the provisions |
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| 42 | 42 | | of the original contract or agreement. |
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| 43 | 43 | | [(d)] For purposes of this subsection [section], |
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| 44 | 44 | | "governmental entity" includes a municipality, a county, a special |
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| 45 | 45 | | district or authority, a junior college district, or another |
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| 46 | 46 | | political subdivision of this state. |
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| 47 | 47 | | SECTION 2. Section 62.151, Labor Code, is amended to read as |
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| 48 | 48 | | follows: |
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| 49 | 49 | | Sec. 62.151. PERSON COVERED BY FEDERAL ACT. This chapter |
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| 50 | 50 | | does [and a municipal ordinance or charter provision governing |
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| 51 | 51 | | wages in private employment, other than wages under a public |
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| 52 | 52 | | contract, do] not apply to a person covered by the Fair Labor |
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| 53 | 53 | | Standards Act of 1938 (29 U.S.C. Section 201 et seq.). |
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| 54 | 54 | | SECTION 3. This Act takes effect September 1, 2017. |
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