Texas 2025 - 89th Regular

Texas House Bill HB5598 Compare Versions

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11 By: Bryant H.B. No. 5598
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46 A BILL TO BE ENTITLED
57 AN ACT
68 relating to the minimum wage and a requirement for a biennial study
79 and report on the living wage in this state, expanding access to
810 childcare, and providing paid parental leave.
911 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1012 ARTICLE 1. RAISING THE MINIMUM WAGE
1113 SECTION 1.01 Section 62.051, Labor Code, is amended to read
1214 as follows:
1315 Sec. 62.051. MINIMUM WAGE. Except as provided by Section
1416 62.057, an employer shall pay to each employee not less than the
1517 greater of:
1618 (1) $15 an hour; or
1719 (2) the federal minimum wage under Section 6, Fair
1820 Labor Standards Act of 1938 (29 U.S.C. Section 206).
1921 SECTION 1.02 Subchapter B, Chapter 62, Labor Code, is
2022 amended by adding Section 62.058 to read as follows:
2123 Sec. 62.058. BIENNIAL STUDY AND REPORT ON STATE LIVING
2224 WAGE. (a) In this section, "consumer price index" means the
2325 Consumer Price Index for Urban Wage Earners and Clerical Workers
2426 (CPI-W), published by the Bureau of Labor Statistics of the United
2527 States Department of Labor.
2628 (b) Not later than September 1 of each even-numbered year,
2729 the commission shall conduct a study and deliver a report to the
2830 legislature on the living wage in this state. In conducting the
2931 study, the commission shall seek to determine what wage rate is
3032 required to meet minimum standards of living throughout this state,
3133 classified on the basis of county or region. In making that
3234 determination, the commission shall consider factors such as the
3335 consumer price index and the cost of daily necessities in each
3436 county or region.
3537 (c) In its report, the commission must include information
3638 from the preceding two-year period for each county or region
3739 regarding:
3840 (1) the number of jobs created that pay at least the
3941 minimum wage;
4042 (2) the effect of the consumer price index on the
4143 purchasing power of individuals and families;
4244 (3) the cost of daily necessities, such as housing,
4345 clothing, food, health care, and child care;
4446 (4) the number of small businesses created and closed;
4547 (5) housing affordability for individuals and
4648 families relying on the minimum wage; and
4749 (6) the feasibility of obtaining health care coverage
4850 when working in a job paying the minimum wage.
4951 (d) The commission may consult with other state agencies as
5052 necessary to conduct the study under this section.
5153 SECTION 1.03 Section 62.151, Labor Code, is repealed.
5254 ARTICLE 2. PAID PARENTAL LEAVE
5355 SECTION 2.01 Subtitle B, Title 4, Labor Code, is amended by
5456 adding Chapter 320 to read as follows:
5557 CHAPTER 320. PAID PARENTAL LEAVE FOR CERTAIN EMPLOYEES
5658 Sec. 320.001. DEFINITIONS. In this chapter:
5759 (1) "Employee" means an individual who performs
5860 services in this state for an employer for compensation under a
5961 contract for hire, whether express or implied. The term does not
6062 include an independent contractor or a state employee to which
6163 Section 661.9125, Government Code, applies.
6264 (2) "Employer" means a person that employs 50 or more
6365 employees.
6466 Sec. 320.002. PAID PARENTAL LEAVE FOR CERTAIN EMPLOYEES.
6567 (a) This section applies only to an employee who, during the
6668 preceding 12 months, has worked for the employer on a full-time
6769 basis.
6870 (b) Subject to Subsection (c), an employee to whom this
6971 section applies is entitled, on request, to 60 days of paid leave
7072 for the:
7173 (1) birth of a child by the employee;
7274 (2) birth of a child by the employee's spouse;
7375 (3) birth of a child by a gestational surrogate;
7476 (4) adoption of a child; or
7577 (5) provision of foster care or kinship care to a child
7678 younger than one year of age who is in the conservatorship of the
7779 Department of Family and Protective Services.
7880 (c) The amount of paid leave to which an employee is
7981 entitled under Subsection (b) for each week of leave taken under
8082 that subsection is an amount equal to the employee's average weekly
8183 wage during the 12-month period preceding the first day that the
8284 employee takes leave under that subsection.
8385 (d) This section does not entitle an employee to leave in
8486 addition to any leave the employee is entitled to under the federal
8587 Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et
8688 seq.). An employee is not entitled to paid leave under this section
8789 for any period during which the employee is taking other paid leave.
8890 (e) An employee may not take leave under this section:
8991 (1) later than the first anniversary of the date of
9092 birth or adoption of a child or placement of a child in foster care
9193 or kinship care; or
9294 (2) more than one time during a 12-month period.
9395 (f) Notwithstanding any other provision of this section, an
9496 employee who takes leave under this section for the purpose
9597 described by Subsection (b)(1) may take the leave before the birth
9698 of the child.
9799 (g) An employer may not take an adverse employment action
98100 against an employee because the employee has taken or plans to take
99101 paid leave under this section. For purposes of this subsection,
100102 "adverse employment action" includes termination or suspension of
101103 the employee's employment, an action that affects the employee's
102104 compensation, promotion, or performance evaluation, or any other
103105 employment action that would dissuade a reasonable employee from
104106 taking paid leave under this chapter.
105107 Sec. 320.003. PAYMENT OF PAID PARENTAL LEAVE COSTS. (a) To
106108 pay for the costs associated with paid leave required under Section
107109 320.002, an employer may directly pay those costs or maintain an
108110 insurance policy providing coverage for those costs in accordance
109111 with this section.
110112 (b) An employer electing to maintain an insurance policy
111113 under Subsection (a) shall maintain a policy that provides
112114 sufficient coverage for the employer's employees who are entitled
113115 to paid leave under Section 320.002. To the extent the policy does
114116 not cover the costs associated with paid leave required under
115117 Section 320.002, the employer is liable for those costs.
116118 (c) The commissioner of insurance may adopt rules
117119 prescribing sufficient coverage requirements and reasonable rates
118120 for an insurance policy described by this section.
119121 Sec. 320.004. EXCEPTION. Notwithstanding any other
120122 provision of this chapter, an employee is not entitled to paid leave
121123 under Section 320.002, and an employer is not required to pay costs
122124 associated with that leave under Section 320.003, if no insurer
123125 authorized to engage in the business of insurance in this state
124126 offers an insurance policy described by Section 320.003 by October
125127 1 of the year preceding the year in which the paid leave requirement
126128 would take effect.
127129 SECTION 2.02 An employee is not entitled to paid leave under
128130 Chapter 320, Labor Code, as added by this Act, before January 1,
129131 2027.
130132 ARTICLE 3. EXPANDED CHILDCARE SUBSIDY
131133 SECTION 3.01 Subchapter A, Chapter 302, Labor Code, is
132134 amended by adding Section 302.00415 to read as follows:
133135 Sec. 302.00415. SUBSIDIZED CHILD CARE PROGRAM:
134136 ELIGIBILITY. (a) A child is eligible for subsidized child care if
135137 the child:
136138 (1) is:
137139 (A) younger than four years of age; and
138140 (B) a member of a household with a total annual
139141 income that is at or below 250 percent of the federal poverty
140142 guidelines; or
141143 (2) meets eligibility requirements established by the
142144 commission.
143145 (b) The commission may adopt rules necessary to administer
144146 this section.
145147 SECTION 3.02 This Act takes effect September 1, 2025.