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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 not less than $18 an hour. |
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(b) Notwithstanding Subsection (a), and except as provided |
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by Subsection (c), an employer shall pay to each employee not less |
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than the greater of: |
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(1) the minimum wage established under Subsection (a); |
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or |
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(2) the amount set as the federal minimum wage under |
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Section 6, Fair Labor Standards Act of 1938 (29 U.S.C. Section 206) |
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plus 25 cents an hour. |
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(c) Beginning on October 1, 2026, an employer shall pay to |
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an employee not less than the minimum wage established under |
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Subsection (d). |
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(d) On June 1, 2026, and every year thereafter, 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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all urban consumers (CPI-U), as computed by the United States |
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Department of Labor for the preceding 12 months, or an analogous |
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index adopted by the commission by rule. The commission by rule |
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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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(e) 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 62.151, Labor Code, is repealed. |
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SECTION 3. This Act takes effect September 1, 2025. |