| 1 | 1 | | 85R5655 LED-D |
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| 2 | 2 | | By: Uresti, et al. S.B. No. 1586 |
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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 minimum wage, including authorizing certain |
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| 8 | 8 | | counties and municipalities to establish a minimum wage. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 62.051, Labor Code, is amended to read as |
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| 11 | 11 | | follows: |
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| 12 | 12 | | Sec. 62.051. MINIMUM WAGE. (a) Except as provided by |
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| 13 | 13 | | Section 62.057, an employer shall pay to each employee not less than |
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| 14 | 14 | | the greater of: |
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| 15 | 15 | | (1) the federal minimum wage under Section 6, Fair |
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| 16 | 16 | | Labor Standards Act of 1938 (29 U.S.C. Section 206); or |
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| 17 | 17 | | (2) if applicable, the greater of: |
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| 18 | 18 | | (A) the minimum wage adopted under Subsection (b) |
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| 19 | 19 | | by the municipality in which the employee performs services for the |
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| 20 | 20 | | employer; or |
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| 21 | 21 | | (B) the minimum wage adopted under Subsection (b) |
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| 22 | 22 | | by the county in which the employee performs services for the |
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| 23 | 23 | | employer. |
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| 24 | 24 | | (b) A municipality with a population of more than 100,000 or |
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| 25 | 25 | | a county with a population of more than 100,000 may adopt a minimum |
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| 26 | 26 | | wage to be paid by an employer to each employee for services |
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| 27 | 27 | | performed in the municipality or county. |
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| 28 | 28 | | (c) The minimum wage adopted under Subsection (b) may not |
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| 29 | 29 | | exceed 135 percent of the federal minimum wage in effect two years |
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| 30 | 30 | | before the date the municipality's or county's minimum wage is to |
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| 31 | 31 | | take effect. |
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| 32 | 32 | | (d) Subject to Subsection (c), an increase in the minimum |
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| 33 | 33 | | wage adopted under Subsection (b) may not be more than eight percent |
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| 34 | 34 | | of the municipality's or county's current minimum wage. |
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| 35 | 35 | | (e) An increase in the minimum wage adopted under Subsection |
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| 36 | 36 | | (b) may not take effect earlier than the first anniversary of the |
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| 37 | 37 | | date the most recent increased minimum wage takes effect. |
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| 38 | 38 | | (f) An employer that employs fewer than 10 employees is |
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| 39 | 39 | | exempt from a minimum wage requirement adopted under Subsection |
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| 40 | 40 | | (b). |
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| 41 | 41 | | SECTION 2. Section 62.0515, Labor Code, is amended to read |
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| 42 | 42 | | as follows: |
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| 43 | 43 | | Sec. 62.0515. [APPLICATION OF MINIMUM WAGE TO CERTAIN |
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| 44 | 44 | | GOVERNMENTAL ENTITIES;] CERTAIN AGREEMENTS WITH GOVERNMENTAL |
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| 45 | 45 | | ENTITIES. (a) [Except as otherwise provided by this section, the |
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| 46 | 46 | | minimum wage provided by this chapter supersedes a wage established |
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| 47 | 47 | | in an ordinance, order, or charter provision governing wages in |
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| 48 | 48 | | private employment, other than wages under a public contract. |
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| 49 | 49 | | [(b) This section does not apply to any state or federal job |
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| 50 | 50 | | training or workforce development program. |
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| 51 | 51 | | [(c) This section does not apply to a minimum wage |
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| 52 | 52 | | established by a governmental entity that applies to a contract or |
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| 53 | 53 | | agreement, including a non-annexation agreement, entered into by a |
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| 54 | 54 | | governmental entity and a private entity.] A private entity that |
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| 55 | 55 | | enters into a contract or agreement, including a non-annexation |
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| 56 | 56 | | agreement, with a governmental entity, under the terms of which the |
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| 57 | 57 | | private entity agrees to comply with a minimum wage that is greater |
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| 58 | 58 | | than the minimum wage established by Section 62.051 [the |
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| 59 | 59 | | governmental entity], is subject to the terms of that contract or |
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| 60 | 60 | | agreement, and those terms apply to and may be enforced against a |
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| 61 | 61 | | general contractor, subcontractor, developer, and other person |
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| 62 | 62 | | with which the private entity contracts in order to comply with the |
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| 63 | 63 | | provisions of the original contract or agreement. |
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| 64 | 64 | | (b) [(d)] For purposes of this section, "governmental |
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| 65 | 65 | | entity" includes a municipality, a county, a special district or |
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| 66 | 66 | | authority, a junior college district, or another political |
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| 67 | 67 | | subdivision of this state. |
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| 68 | 68 | | SECTION 3. Section 62.151, Labor Code, is repealed. |
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| 69 | 69 | | SECTION 4. This Act takes effect September 1, 2017. |
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