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A BILL TO BE ENTITLED
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AN ACT
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relating to the minimum wage. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 62.051, Labor Code, is amended to read as |
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follows: |
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Sec. 62.051. MINIMUM WAGE. (a) Except as otherwise |
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provided by this section [Section 62.057], an employer shall pay to |
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each employee the federal minimum wage under Section 6, Fair Labor |
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Standards Act of 1938 (29 U.S.C. Section 206). |
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(b) Beginning with the calendar year beginning on January 1, |
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2008, and each calendar year thereafter, an employer shall pay to an |
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employee not less than the minimum wage established under |
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Subsection (c). |
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(c) On October 1, 2007, and each following October 1, the |
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commission shall adjust the minimum wage established under |
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Subsection (b) for inflation. The adjusted minimum wage rate shall |
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be computed to the nearest cent using the consumer price index for |
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urban wage earners and clerical workers (CPI-W), as computed by the |
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United States Department of Labor for the preceding 12 months, or an |
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analogous index adopted by the commission by rule. The commission |
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by rule shall: |
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(1) describe the process used in computing inflation |
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rates and the procedure for determining the level of inflation used |
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in the commission's computations; and |
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(2) based on the computations under Subdivision (1), |
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set the state minimum wage for the subsequent calendar year. |
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(d) This section does not apply to compensation paid to a |
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person under Section 62.057. |
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SECTION 2. Section 62.052(a), Labor Code, is amended to |
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read as follows: |
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(a) In determining the wage of a tipped employee, the amount |
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paid the employee by the employer is the amount described by Section |
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62.051. An employer may not apply tips or gratuities bestowed on |
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employees as a credit toward payment of the minimum hourly wage |
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required by Section 62.051 [as paid to a tipped employee under
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Section 3(m), Fair Labor Standards Act of 1938 (29 U.S.C. Section
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203(m))]. |
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SECTION 3. Section 62.151, Labor Code, is repealed. |
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SECTION 4. This Act takes effect September 1, 2007. |