BILL ANALYSIS H.B. 1297 By: Rodriguez March 7, 1995 Committee Report (Unamended) BACKGROUND The federal minimum wage is set by the Fair Labor Standards Act, 29 U.S.C. §201 et seq. and is currently set at $4.25 an hour. While the vast majority of workers in all industries, including agriculture, are covered by the federal minimum wage, some workers are excluded from the federal minimum wage protection. The Texas Minimum Wage Act is intended to be a safety net protecting some of those workers who fall through the cracks in the federal law. The state minimum wage law applies only to workers who are not covered by the federal minimum wage law. In 1987, the Texas Minimum Wage Act was amended to bring the state minimum wage back up to parity with the federal minimum wage, which at that time was $3.35 an hour. The Texas minimum wage had not been increased since 1970 when it was at $1.70 and the federal minimum wage had been raised on a regular basis. Now in 1995 the State minimum wage has again begun to lag behind the federal minimum wage. In 1989, the U.S. Congress amended the federal minimum wage law increasing the federal minimum wage in two steps: to $3.80 an hour effective April 1, 1990 and then to $4.25 an hour effective April 1, 1991. No further increases in the federal minimum wage are currently scheduled. In addition, the Texas Minimum Wage Act does not comply with the American Disabilities Act because it allows that certain employees, such as if a person's earning or productive capacity is impaired by age, physical or mental deficiency or injury; a person over 65 years of age can be employed at a wage less than the applicable minimum. PURPOSE House Bill 1297 merely updates the wage rate itself to reflect current standards. It will restore the parity between the state minimum wage and the federal minimum wage which is $4.25. It prevents the state minimum wage from lagging behind the federal minimum and it helps the state minimum wage keep pace with the increased cost of living. This bill also beings Texas in compliance with the American Disabilities Act. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, department, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 62.051 of the Labor Code by raising the minimum wage from $3.35 an hour to $4.25 an hour or the current federal minimum wage under Section 6, Fair Labor Standards Act of 1938. SECTION 2. Repeals Section 62.055 and 62.056, Labor Code which excluded certain employees that are protected under the American Disabilities Act. SECTION 3. This Act takes effect September 1, 1995. SECTION 4. Emergency clause. SUMMARY OF COMMITTEE ACTION H.B. 1297 was considered by the committee in a public hearing on March 6, 1995. Testifying on the bill was Ed Davis, representing the Texas Employment Commission. Testifying in favor of the bill was Laura Brown, representing the Coalition of Texans with Disabilities; Rebecca Flores Harrington, representing the United Farm Workers; Jesse Romero, representing the Mexican American Legal Defense and Education Fund; Cheri-Louise Horton, representing herself; and Rebecca Murillo, representing herself. Testifying against the bill was Ed Small, representing the Texas and Southwestern Cattle Raisers Association; Kathryn Keller, representing the Texas Farm Bureau; Robert Howden, representing the National Federation of Independent Business, Texas; David Wittie, representing ADAPT of Texas; Rona Schnall, representing ADAPT of Texas; and David Pinkus, representing the Small Business United of Texas. H.B. 1297 was reported favorably without amendment, with the recommendation that it do pass and be printed, by a record vote of 5 ayes, 3 nays, 0 pnv, 1 absent.