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 Section 62.151, Labor Code, is repealed.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