85R5655 LED-D
By: Uresti, et al. S.B. No. 1586
A BILL TO BE ENTITLED
AN ACT
relating to the minimum wage, including authorizing certain
counties and municipalities to establish a minimum wage.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 62.051, Labor Code, is amended to read as
follows:
Sec. 62.051. MINIMUM WAGE. (a) Except as provided by
Section 62.057, an employer shall pay to each employee not less than
the greater of:
(1) the federal minimum wage under Section 6, Fair
Labor Standards Act of 1938 (29 U.S.C. Section 206); or
(2) if applicable, the greater of:
(A) the minimum wage adopted under Subsection (b)
by the municipality in which the employee performs services for the
employer; or
(B) the minimum wage adopted under Subsection (b)
by the county in which the employee performs services for the
employer.
(b) A municipality with a population of more than 100,000 or
a county with a population of more than 100,000 may adopt a minimum
wage to be paid by an employer to each employee for services
performed in the municipality or county.
(c) The minimum wage adopted under Subsection (b) may not
exceed 135 percent of the federal minimum wage in effect two years
before the date the municipality's or county's minimum wage is to
take effect.
(d) Subject to Subsection (c), an increase in the minimum
wage adopted under Subsection (b) may not be more than eight percent
of the municipality's or county's current minimum wage.
(e) An increase in the minimum wage adopted under Subsection
(b) may not take effect earlier than the first anniversary of the
date the most recent increased minimum wage takes effect.
(f) An employer that employs fewer than 10 employees is
exempt from a minimum wage requirement adopted under Subsection
(b).
SECTION 2. Section 62.0515, Labor Code, is amended to read
as follows:
Sec. 62.0515. [APPLICATION OF MINIMUM WAGE TO CERTAIN
GOVERNMENTAL ENTITIES;] CERTAIN AGREEMENTS WITH GOVERNMENTAL
ENTITIES. (a) [Except as otherwise provided by this section, the
minimum wage provided by this chapter supersedes a wage established
in an ordinance, order, or charter provision governing wages in
private employment, other than wages under a public contract.
[(b) This section does not apply to any state or federal job
training or workforce development program.
[(c) This section does not apply to a minimum wage
established by a governmental entity that applies to a contract or
agreement, including a non-annexation agreement, entered into by a
governmental entity and a private entity.] A private entity that
enters into a contract or agreement, including a non-annexation
agreement, with a governmental entity, under the terms of which the
private entity agrees to comply with a minimum wage that is greater
than the minimum wage established by Section 62.051 [the
governmental entity], is subject to the terms of that contract or
agreement, and those terms apply to and may be enforced against a
general contractor, subcontractor, developer, and other person
with which the private entity contracts in order to comply with the
provisions of the original contract or agreement.
(b) [(d)] For purposes of this section, "governmental
entity" includes a municipality, a county, a special district or
authority, a junior college district, or another political
subdivision of this state.
SECTION 3. Section 62.151, Labor Code, is repealed.
SECTION 4. This Act takes effect September 1, 2017.