And the tip credit ends. Employers can’t keep tips.
The bill raises the Texas minimum wage to $19 an hour, or the federal minimum wage if that is ever higher. It also ends the tip credit, so employers must pay tipped workers a set base wage tied to a cross-referenced section, and they may not keep any of a worker's tips. It repeals Section 62.151 of the Labor Code starting September 1, 2025, which changes who the state minimum wage covers.
Labels
Labels: ZOMBIE BILL. Died 2 times: 88R HB 2175 by Rep. Cole (Died in committee) and this bill (Died in committee). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 2175 by Rep. Cole (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.NEVER GOT A HEARING. Filed Nov 12, 2024 and referred to the House Trade, Workforce & Economic Development subcommittee on Workforce. No public hearing. The bill died.
And the tip credit ends. Employers can’t keep tips.
The bill raises the Texas minimum wage to $19 an hour, or the federal minimum wage if that is ever higher. It also ends the tip credit, so employers must pay tipped workers a set base wage tied to a cross-referenced section, and they may not keep any of a worker's tips. It repeals Section 62.151 of the Labor Code starting September 1, 2025, which changes who the state minimum wage covers.
House committee · Trade, Workforce & Economic Development · Final status: Died in committee
Subjects
Labor--Wages
MINIMUM WAGE
Text
The text as introduced · 253 words
By: Goodwin
H.B. No. 691
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. Except as provided by Sections
62.052 and [ Section ] 62.057, an employer shall pay to each employee
not less than the greater of:
(1) $19 an hour; or
(2) the federal minimum wage under Section 6, Fair
Labor Standards Act of 1938 (29 U.S.C. Section 206).
SECTION 2. Section 62.052, Labor Code, is amended to read as
follows:
Sec. 62.052. TIPPED EMPLOYEES. (a) [ In determining the
wage of a tipped employee, the amount paid the employee by the
employer is the amount described as paid to a tipped employee under
Section 3(m), Fair Labor Standards Act of 1938 (29 U.S.C. Section
203(m)).
[ (b) ] In this section, "tipped employee" means an employee
engaged in an occupation in which the employee customarily and
regularly receives more than $20 a month in tips.
(b) An employer shall pay to each tipped employee not less
than half of the amount outlined in Sec. 63.025. The amount paid to
an employee may not be reduced by a tip credit against the minimum
wage.
(c) This section may not be construed to allow an employer
to keep any portion of a tipped employee's tips.
SECTION 3. Section 62.151, Labor Code, is repealed.
SECTION 4. This Act takes effect September 1, 2025.