HBA-EDN H.B. 533 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 533 By: Thompson Economic Development 7/17/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature, the Texas Minimum Wage Act provided a state minimum wage of $3.35 per hour for nonexempt employees and $1.68 per hour for tipped employees. In comparison, the Fair Labor Standards Act of 1938 (FLSA) provides that the current federal minimum wage for nonexempt employees is $5.15 per hour and $2.13 per hour for tipped employees. House Bill 533 increases the state minimum wage rate to the federal minimum wage rate and makes state minimum wage amounts subject to FLSA standards. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 533 amends the Labor Code to require an employer to pay to each employee the federal minimum wage under the Fair Labor Standards Act of 1938 (FLSA). The bill provides that 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 FLSA. EFFECTIVE DATE September 1, 2001.