Workers With Disabilities Get The Minimum Wage, Starting 2030

The text as introduced · 742 words

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.