HB5368 - Relating to the minimum wage.

      By: Rodríguez Ramos H.B. No. 5368       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 $19 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).           (c)     Beginning on October 1, 2026, an employer shall pay to   an employee not less than the minimum wage established under   Subsection (d).           (d)     Except as provided by Subsection (e), 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)     The commission may not adjust the minimum wage under   Subsection (d) to an amount that is less than the minimum wage for   the preceding calendar year.           (f)     This section does not apply to compensation paid to a   person under Section 62.057 or to a tipped employee under Section   62.052.          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 the   federal minimum wage under Section 6, Fair Labor Standards Act of   1938 (29 U.S.C. Section 206(a)(1)). 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 497.004(a), Government Code, is amended   to read as follows:          (a)  The board shall [ may ] develop by rule and the department   shall [ may ] administer an incentive pay scale for work program   participants consistent with rules adopted by the board under   Subchapter C. The board shall set pay levels at a minimum of the   federal minimum wage under Section 6, Fair Labor Standards Act of   1938 (29 U.S.C. Section 206(a)(1)). Prison industries may be   financed through contributions donated for this purpose by private   businesses contracting with the department. The department shall   apportion pay earned by a work program participant in the same   manner as is required by rules adopted by the board under Section   497.0581.          SECTION 4.  Section 497.099(b), Government Code, is amended   to read as follows:          (b)  The board shall [ may ] develop by rule and the department   shall [ may ] administer an incentive pay scale program for inmates   required to work in agricultural, industrial, or other work   programs. In developing the program, the board shall set pay levels   not to unjustly reward inmates, but rather to instruct inmates on   the virtues of diligent participation in the workplace , provided   that the board shall set pay levels at a minimum of the federal   minimum wage under Section 6, Fair Labor Standards Act of 1938 (29   U.S.C. Section 206(a)(1)) . The department shall deposit an amount   earned by an inmate under this subsection into the inmate's trust   fund and may deduct not more than 80 percent of the amount deposited   under this subsection for payment of restitution and dependent care   owed by the inmate. [ This subsection does not apply to the   compensation of an inmate participating in a Texas Correctional   Industries program under Subchapter A or an inmate participating in   a private sector prison industries program under Subchapter C. ]          SECTION 5.  Section 62.151, Labor Code, is repealed.          SECTION 6.  Not later than December 1, 2025, the Texas Board   of Criminal Justice shall adopt the rules required by Sections   497.004(a) and 497.099(b), Government Code, as amended by this Act.          SECTION 7.  This Act takes effect September 1, 2025.