bill raising Texas minimum wage to $18

The text as introduced · 304 words

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 Section 62.151, Labor Code, is repealed.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.