bill lets cities and counties set their own minimum wage

The text as introduced · 465 words

89R4375 RDS-F

By: Eckhardt
S.B. No. 339

A BILL TO BE ENTITLED

AN ACT

relating to authorization for a county or municipality to establish

a local minimum wage.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 62.0515, Labor Code, is amended to read

as follows:

Sec. 62.0515. [ APPLICATION OF ] MINIMUM WAGE ESTABLISHED BY

[ TO ] CERTAIN GOVERNMENTAL ENTITIES; CERTAIN AGREEMENTS WITH

GOVERNMENTAL ENTITIES. (a) Notwithstanding Section 62.151:

(1) a municipality may adopt a minimum wage that is

greater than the minimum wage established by Section 62.051 to be

paid by an employer to each employee for services performed in the

municipality; and

(2) a county may adopt a minimum wage that is greater

than the minimum wage established by Section 62.051 to be paid by an

employer to each employee for services performed in the

unincorporated areas of the county, including areas located within

the extraterritorial jurisdiction of a municipality. [ Except as

otherwise provided by this section, the minimum wage provided by

this chapter supersedes a wage established in an ordinance, order,

or charter provision governing wages in private employment, other

than wages under a public contract. ]

(b) [ This section does not apply to any state or federal job

training or workforce development program.

[ (c) This section does not apply to a minimum wage

established by a governmental entity that applies to a contract or

agreement, including a non-annexation agreement, entered into by a

governmental entity and a private entity. ] A private entity that

enters into a contract or agreement, including a non-annexation

agreement, with a governmental entity, under the terms of which the

private entity agrees to comply with a minimum wage that is greater

than the minimum wage established by Section 62.051 or, if

applicable, Subsection (a) of this section [ the governmental

entity ], is subject to the terms of that contract or agreement, and

those terms apply to and may be enforced against a general

contractor, subcontractor, developer, and other person with which

the private entity contracts in order to comply with the provisions

of the original contract or agreement.

[ (d) ] For purposes of this subsection [ section ],

"governmental entity" includes a municipality, a county, a special

district or authority, a junior college district, or another

political subdivision of this state.

SECTION 2. Section 62.151, Labor Code, is amended to read as

follows:

Sec. 62.151. PERSON COVERED BY FEDERAL ACT. This chapter

does [ and a municipal ordinance or charter provision governing

wages in private employment, other than wages under a public

contract, do ] not apply to a person covered by the Fair Labor

Standards Act of 1938 (29 U.S.C. Section 201 et seq.).

SECTION 3. This Act takes effect September 1, 2025.