By Coleman H.B. No. 762
77R2522 AEI-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to requiring certain employers who contract with or
1-3 receive financial assistance from the state or a state agency to
1-4 pay its employees a living wage; providing a penalty.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle C, Title 2, Labor Code, is amended by
1-7 adding Chapter 65 to read as follows:
1-8 CHAPTER 65. LIVING WAGE
1-9 Sec. 65.001. DEFINITIONS. In this chapter:
1-10 (1) "Commission" means the Texas Workforce Commission.
1-11 (2) "Employee" includes any individual employed by an
1-12 employer.
1-13 (3) "Employer" includes a person acting directly or
1-14 indirectly in the interest of an employer in relation to an
1-15 employee.
1-16 (4) "Fair market rent" means the most recent fair
1-17 market rent established by the United States Department of Housing
1-18 and Urban Development for a two bedroom dwelling in a market area.
1-19 (5) "Living wage" means a wage computed under Section
1-20 65.003.
1-21 (6) "Market area" means the area designated by the
1-22 United States Department of Housing and Urban Development in which
1-23 the employer's office is located at which an employee works or is
1-24 based.
2-1 (7) "Service contract" means a contract with the state
2-2 or a state agency primarily for the furnishing of services to or
2-3 for the state or state agency.
2-4 (8) "State agency" means:
2-5 (A) a board, commission, department, office, or
2-6 other agency in the executive branch of state government that is
2-7 created by the constitution or a statute of this state, including a
2-8 river authority and an institution of higher education as defined
2-9 by Section 61.003, Education Code;
2-10 (B) the legislature or a legislative agency; or
2-11 (C) the Supreme Court of Texas, the Texas Court
2-12 of Criminal Appeals, a court of appeals, a state judicial agency,
2-13 or the State Bar of Texas.
2-14 Sec. 65.002. PAYMENT OF LIVING WAGE REQUIRED. (a) An
2-15 employer who contracts with the state or a state agency on a
2-16 service contract, and a subcontractor who works on the service
2-17 contract, shall pay each employee employed by the employer or
2-18 subcontractor in execution of the contract or subcontract not less
2-19 than the living wage for the market area.
2-20 (b) An employer who obtains financial assistance by loan,
2-21 grant, tax abatement, or other subsidy from the state or a state
2-22 agency shall pay each employee not less than the living wage for
2-23 the market area.
2-24 Sec. 65.003. COMPUTATION OF LIVING WAGE. The living wage for
2-25 a market area is computed by:
2-26 (1) multiplying the fair market rent for the market
2-27 area by three to obtain the gross monthly income;
3-1 (2) multiplying the gross monthly income by 12 to
3-2 obtain the gross yearly income; and
3-3 (3) dividing the gross yearly income by 2,080 to
3-4 obtain the hourly wage.
3-5 Sec. 65.004. NOTICE. (a) An employer shall post a notice as
3-6 prescribed by the commission by rule regarding the living wage
3-7 required by this chapter. The notice must be posted at conspicuous
3-8 places at each of the employer's places of business.
3-9 (b) The notice must include the living wage rate and the
3-10 telephone number of the commission for information about the living
3-11 wage requirement and procedures for filing a claim.
3-12 Sec. 65.005. RECORDS. An employer shall keep full and
3-13 accurate payroll records for each employee subject to this chapter
3-14 and shall report that information periodically to the commission as
3-15 prescribed by commission rule.
3-16 Sec. 65.006. RETALIATION. An employer may not retaliate or
3-17 discriminate against an employee who, under this chapter:
3-18 (1) makes or files a complaint; or
3-19 (2) testifies, assists, or participates in any manner
3-20 in any investigation, proceeding, or hearing.
3-21 Sec. 65.007. COMMISSION DUTIES. (a) The commission shall
3-22 adopt rules for monitoring compliance by employers with this
3-23 chapter.
3-24 (b) The commission may require reports, conduct
3-25 investigations, and take other action it considers necessary to
3-26 implement this chapter.
3-27 (c) The commission shall file a report annually with the
4-1 legislature regarding the operation of the living wage requirement.
4-2 Sec. 65.008. LIVING WAGE AND RETALIATION CLAIM. (a) A claim
4-3 may be filed with the commission by an employee or former employee
4-4 who:
4-5 (1) is not paid a living wage as required by this
4-6 chapter; or
4-7 (2) is retaliated or discriminated against in
4-8 violation of this chapter.
4-9 (b) A claim must be filed under this section not later than
4-10 the first anniversary of:
4-11 (1) the violation giving rise to the claim; or
4-12 (2) the date the employee or former employee knows, or
4-13 has reason to know, of the violation giving rise to the claim.
4-14 (c) A claim under this section shall be filed with the
4-15 commission according to procedures analogous to the rules set forth
4-16 in Subchapter D, Chapter 61.
4-17 (d) The commission shall investigate a claim filed under
4-18 this section, make a preliminary determination on whether a
4-19 violation has occurred, and recommend a penalty.
4-20 (e) The commission shall mail notice of the preliminary
4-21 determination to the employer and the complainant at each party's
4-22 last known address, as reflected by commission records.
4-23 (f) Either party may request a hearing to contest the
4-24 preliminary determination according to commission rules.
4-25 Sec. 65.009. ADMINISTRATIVE PENALTY; OTHER ACTIONS. (a) The
4-26 commission may assess an administrative penalty against an employer
4-27 determined to be in violation of this chapter in the manner
5-1 provided by Section 61.053.
5-2 (b) In addition to an administrative penalty under
5-3 Subsection (a), the commission may by order take one or more of the
5-4 following actions:
5-5 (1) withhold payment or money due the employer in an
5-6 amount sufficient to pay the wages of the employee or former
5-7 employee;
5-8 (2) terminate, cancel, or suspend the service contract
5-9 or financial assistance agreement, in whole or in part; or
5-10 (3) disqualify the employer from contracting with or
5-11 receiving financial assistance from the state or a state agency, or
5-12 from working on a service contract, for a period of up to three
5-13 years.
5-14 Sec. 65.010. JUDICIAL REVIEW. (a) A party may seek judicial
5-15 review of the commission's order in accordance with the procedures
5-16 adopted under Section 61.062.
5-17 (b) An employee or former employee who files suit under
5-18 Subsection (a) may be awarded reinstatement, back pay, damages,
5-19 attorney's fees, court costs, and other equitable relief as may be
5-20 appropriate.
5-21 Sec. 65.011. LIVING WAGE SUPERSEDES PREVAILING WAGE. A
5-22 requirement under this chapter to pay a living wage supersedes a
5-23 requirement to pay a prevailing wage under Chapter 2258, Government
5-24 Code, to the extent of any conflict.
5-25 SECTION 2. The requirement imposed by Section 65.002, Labor
5-26 Code, as added by this Act, applies only to a service contract or
5-27 financial assistance agreement made or renewed on or after the
6-1 effective date of this Act. A service contract or financial
6-2 assistance agreement made or renewed before that date is governed
6-3 by the law in effect at the time the service contract or financial
6-4 assistance agreement was made or renewed, and the former law is
6-5 continued in effect for that purpose.
6-6 SECTION 3. This Act takes effect September 1, 2001.