| 1 | 1 | | 89R15480 RDS-D |
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| 2 | 2 | | By: Morales of Harris H.B. No. 3447 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the 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) Except as otherwise |
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| 14 | 14 | | provided by this section [Section 62.057], an employer shall pay to |
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| 15 | 15 | | each employee not less than $18 an hour. |
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| 16 | 16 | | (b) Notwithstanding Subsection (a), and except as provided |
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| 17 | 17 | | by Subsection (c), an employer shall pay to each employee not less |
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| 18 | 18 | | than the greater of: |
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| 19 | 19 | | (1) the minimum wage established under Subsection (a); |
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| 20 | 20 | | or |
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| 21 | 21 | | (2) the amount set as the federal minimum wage under |
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| 22 | 22 | | Section 6, Fair Labor Standards Act of 1938 (29 U.S.C. Section 206) |
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| 23 | 23 | | plus 25 cents an hour. |
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| 24 | 24 | | (c) Beginning on October 1, 2026, an employer shall pay to |
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| 25 | 25 | | an employee not less than the minimum wage established under |
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| 26 | 26 | | Subsection (d). |
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| 27 | 27 | | (d) On June 1, 2026, and every year thereafter, the |
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| 28 | 28 | | commission shall adjust the minimum wage established under |
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| 29 | 29 | | Subsection (b) for inflation. The adjusted minimum wage rate shall |
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| 30 | 30 | | be computed to the nearest cent using the consumer price index for |
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| 31 | 31 | | all urban consumers (CPI-U), as computed by the United States |
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| 32 | 32 | | Department of Labor for the preceding 12 months, or an analogous |
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| 33 | 33 | | index adopted by the commission by rule. The commission by rule |
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| 34 | 34 | | shall: |
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| 35 | 35 | | (1) describe the process used in computing inflation |
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| 36 | 36 | | rates and the procedure for determining the level of inflation used |
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| 37 | 37 | | in the commission's computations; and |
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| 38 | 38 | | (2) based on the computations under Subdivision (1), |
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| 39 | 39 | | set the state minimum wage for the subsequent calendar year. |
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| 40 | 40 | | (e) This section does not apply to compensation paid to a |
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| 41 | 41 | | person under Section 62.057. |
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| 42 | 42 | | SECTION 2. Section 62.151, Labor Code, is repealed. |
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| 43 | 43 | | SECTION 3. This Act takes effect September 1, 2025. |
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