89R12960 JSC-D
By: Hernandez H.B. No. 3494
A BILL TO BE ENTITLED
AN ACT
relating to wages paid to certain workers with disabilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Effective September 1, 2030, Section 62.051,
Labor Code, is amended to read as follows:
Sec. 62.051. MINIMUM WAGE. An [Except as provided by
Section 62.057, an] employer shall pay to each employee the federal
minimum wage under Section 6, Fair Labor Standards Act of 1938 (29
U.S.C. Section 206).
SECTION 2. Section 62.057, Labor Code, is amended by adding
Subsection (e) to read as follows:
(e) This section expires September 1, 2030.
SECTION 3. Section 62.161, Labor Code, is amended to read as
follows:
Sec. 62.161. SHELTERED WORKSHOPS. (a) A nonprofit
charitable organization that is engaged in evaluating, training,
and employment services for clients with disabilities and that
complies with federal regulations covering those activities is
considered to have complied with this chapter.
(b) This section expires September 1, 2030.
SECTION 4. Chapter 62, Labor Code, is amended by adding
Subchapter F to read as follows:
SUBCHAPTER F. MINIMUM WAGE PLAN FOR WORKERS WITH DISABILITIES
Sec. 62.251. APPLICABILITY. This subchapter applies to an
employer who pays workers with disabilities wages that are less
than the federal minimum wage under Section 6, Fair Labor Standards
Act of 1938 (29 U.S.C. Section 206).
Sec. 62.252. WORKFORCE COMMISSION ASSISTANCE. The
workforce commission shall assist:
(1) an employer in developing a plan to increase the
wages paid to its workers with disabilities to the federal minimum
wage not later than September 1, 2030; and
(2) an employer by providing:
(A) information about certified benefits
counselors to ensure that workers are informed about work
incentives and the potential impact the increase in wages may have
on a worker's eligibility for any federal or state benefit program;
and
(B) a referral to a certified benefits counselor
to any worker with a disability who requests a referral.
Sec. 62.253. EMPLOYER RETENTION OF WORKERS. (a) Each
employer shall, to the maximum extent possible, ensure that each
worker with a disability remains employed by the employer after the
employer increases the wages paid to those workers to at least the
federal minimum wage.
(b) If an employer is unable to employ all workers with a
disability after the employer increases the wages paid to those
employees to the federal minimum wage, the employer shall work with
the commission and any other governmental entity to seek and obtain
any job training and employment services that may be suitable for
those former employees to find other employment that pays at least
the federal minimum wage.
Sec. 62.254. WORKER ASSISTANCE BY COMMISSION. In addition
to the assistance described by Section 62.253(b), the commission
may, at the worker's request, assist a worker with a disability not
retained by an employer to secure employment in a position that pays
at least the federal minimum wage.
Sec. 62.255. EXTENSION. (a) On request of an employer, the
commission may extend the period for compliance with the minimum
wage requirements of this chapter for not more than 12 months if the
employer:
(1) requests the extension not later than March 1,
2030;
(2) has demonstrated to the commission that an
extension would be in the best interest of the employer's current
workers with disabilities; and
(3) has worked with the commission to develop a
transition plan for the payment of at least the federal minimum wage
to workers with disabilities.
(b) The commission shall make a decision on a request for an
extension under Subsection (a) not later than May 1, 2030.
(c) The commission may not grant more than one extension to
an employer.
Sec. 62.256. EXPIRATION. This subchapter expires September
1, 2031.
SECTION 5. Effective September 1, 2030, Section 201.067(b),
Labor Code, is amended to read as follows:
(b) Notwithstanding Subsection (a)(1), in this subtitle
"employment" includes service performed by an individual whose
earning capacity is impaired by age, physical impairment,
developmental disability, mental illness, or intellectual
disability or injury[, other than an individual compensated as
provided by Section 62.057,] and who, after training, is working
for a sheltered workshop or other facility operated by a charitable
organization:
(1) temporarily while awaiting placement in a position
of employment in the competitive labor market; or
(2) permanently because the individual is unable to
compete in the competitive labor market.
SECTION 6. This Act takes effect September 1, 2025.