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A BILL TO BE ENTITLED
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AN ACT
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relating to the state minimum wage, including adjustments based on |
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the consumer price index and authorization for a county or |
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municipality to establish a local 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) In this section: |
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(1) "Adjusted minimum wage" means the minimum wage as |
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calculated under Subsection (d). |
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(2) "Consumer price index" means the Consumer Price |
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Index for Urban Wage Earners and Clerical Workers (CPI-W), |
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published by the Bureau of Labor Statistics of the United States |
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Department of Labor. |
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(b) This section applies only to wages paid to an employee |
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who is subject to the minimum wage provisions of the Fair Labor |
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Standards Act of 1938 (29 U.S.C. Section 201 et seq.). |
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(c) Except as provided by Sections 62.052 and [Section] |
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62.057, an employer shall pay to each employee not less than the |
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greater of: |
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(1) the adjusted minimum wage; or |
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(2) the federal minimum wage under Section 6, Fair |
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Labor Standards Act of 1938 (29 U.S.C. Section 206). |
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(c-1) This subsection applies to wages paid by an employer |
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for the 2016 and 2017 calendar years. Subsection (c) does not apply |
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in a year to which this subsection applies. Except as provided by |
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Sections 62.052 and 62.057: |
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(1) for the 2016 calendar year, an employer shall pay |
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to each employee not less than the greater of: |
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(A) $8.75 an hour; or |
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(B) the federal minimum wage under Section 6, |
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Fair Labor Standards Act of 1938 (29 U.S.C. Section 206); and |
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(2) for the 2017 calendar year, an employer shall pay |
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to each employee not less than the greater of: |
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(A) $10.10 an hour; or |
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(B) the federal minimum wage under Section 6, |
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Fair Labor Standards Act of 1938 (29 U.S.C. Section 206). |
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(c-2) Subsection (c-1) and this subsection expire January |
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1, 2018. |
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(d) Not later than September 30 of each year, the commission |
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shall calculate, to the nearest cent, the adjusted minimum wage to |
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be paid for the next calendar year, if applicable, by increasing the |
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adjusted minimum wage for that calendar year by the percentage |
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increase, if any, in the consumer price index, for the 12-month |
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period that ends on August 31 preceding the calculation. |
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(e) The adjusted minimum wage may not be decreased under |
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this section on the basis of any decrease in the consumer price |
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index. |
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(f) A reference in this code or another law to the minimum |
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wage established by state law means the adjusted minimum wage. |
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SECTION 2. Section 62.0515, Labor Code, is amended to read |
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as follows: |
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Sec. 62.0515. [APPLICATION OF] MINIMUM WAGE ESTABLISHED BY |
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[TO] CERTAIN GOVERNMENTAL ENTITIES; CERTAIN AGREEMENTS WITH |
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GOVERNMENTAL ENTITIES. (a) A municipality may adopt a minimum wage |
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that is greater than the minimum wage established by Section 62.051 |
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to be paid by an employer to each employee for services performed in |
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the municipality. A county may adopt a minimum wage that is greater |
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than the minimum wage established by Section 62.051 to be paid by an |
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employer to each employee for services performed in the |
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unincorporated areas of the county, including areas located within |
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the extraterritorial jurisdiction of a municipality. [Except as
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otherwise provided by this section, the minimum wage provided by
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this chapter supersedes a wage established in an ordinance, order,
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or charter provision governing wages in private employment, other
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than wages under a public contract.] |
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(b) [This section does not apply to any state or federal job
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training or workforce development program.
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[(c)
This section does not apply to a minimum wage
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established by a governmental entity that applies to a contract or
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agreement, including a non-annexation agreement, entered into by a
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governmental entity and a private entity.] A private entity that |
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enters into a contract or agreement, including a non-annexation |
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agreement, with a governmental entity, under the terms of which the |
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private entity agrees to comply with a minimum wage that is greater |
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than the minimum wage established by Section 62.051 or, if |
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applicable, Subsection (a) of this section [the governmental
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entity], is subject to the terms of that contract or agreement, and |
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those terms apply to and may be enforced against a general |
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contractor, subcontractor, developer, and other person with which |
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the private entity contracts in order to comply with the provisions |
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of the original contract or agreement. |
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[(d)] For purposes of this subsection [section], |
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"governmental entity" includes a municipality, a county, a special |
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district or authority, a junior college district, or another |
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political subdivision of this state. |
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SECTION 3. Subchapter D, Chapter 62, Labor Code, is amended |
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by adding Section 62.162 to read as follows: |
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Sec. 62.162. CERTAIN SMALL BUSINESSES. An employer that |
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employs fewer than 26 employees is exempt from this chapter. |
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SECTION 4. Section 62.151, Labor Code, is repealed. |
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SECTION 5. Not later than September 30, 2017, the Texas |
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Workforce Commission shall determine the first increase in the |
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adjusted minimum wage, if any, as required by Section 62.051(d), |
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Labor Code, as added by this Act. For purposes of that computation, |
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the adjusted minimum wage for the 2017 calendar year is $10.10 an |
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hour. |
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SECTION 6. This Act takes effect January 1, 2016. |