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A BILL TO BE ENTITLED
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AN ACT
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relating to wages paid to certain workers with disabilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Effective September 1, 2030, Section 62.051, |
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Labor Code, is amended to read as follows: |
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Sec. 62.051. MINIMUM WAGE. An [Except as provided by |
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Section 62.057, an] employer shall pay to each employee the federal |
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minimum wage under Section 6, Fair Labor Standards Act of 1938 (29 |
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U.S.C. Section 206). |
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SECTION 2. Section 62.057, Labor Code, is amended by adding |
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Subsection (e) to read as follows: |
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(e) This section expires September 1, 2030. |
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SECTION 3. Section 62.161, Labor Code, is amended to read as |
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follows: |
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Sec. 62.161. SHELTERED WORKSHOPS. (a) A nonprofit |
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charitable organization that is engaged in evaluating, training, |
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and employment services for clients with disabilities and that |
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complies with federal regulations covering those activities is |
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considered to have complied with this chapter. |
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(b) This section expires September 1, 2030. |
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SECTION 4. Chapter 62, Labor Code, is amended by adding |
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Subchapter F to read as follows: |
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SUBCHAPTER F. MINIMUM WAGE PLAN FOR WORKERS WITH DISABILITIES |
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Sec. 62.251. APPLICABILITY. This subchapter applies to an |
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employer who pays workers with disabilities wages that are less |
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than the federal minimum wage under Section 6, Fair Labor Standards |
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Act of 1938 (29 U.S.C. Section 206). |
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Sec. 62.252. WORKFORCE COMMISSION ASSISTANCE. The |
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workforce commission shall assist: |
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(1) an employer in developing a plan to increase the |
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wages paid to its workers with disabilities to the federal minimum |
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wage not later than September 1, 2030; and |
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(2) an employer by providing: |
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(A) information about certified benefits |
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counselors to ensure that workers are informed about work |
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incentives and the potential impact the increase in wages may have |
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on a worker's eligibility for any federal or state benefit program; |
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and |
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(B) a referral to a certified benefits counselor |
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to any worker with a disability who requests a referral. |
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Sec. 62.253. EMPLOYER RETENTION OF WORKERS. (a) Each |
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employer shall, to the maximum extent possible, ensure that each |
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worker with a disability remains employed by the employer after the |
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employer increases the wages paid to those workers to at least the |
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federal minimum wage. |
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(b) If an employer is unable to employ all workers with a |
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disability after the employer increases the wages paid to those |
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employees to the federal minimum wage, the employer shall work with |
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the commission and any other governmental entity to seek and obtain |
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any job training and employment services that may be suitable for |
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those former employees to find other employment that pays at least |
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the federal minimum wage. |
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Sec. 62.254. WORKER ASSISTANCE BY COMMISSION. In addition |
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to the assistance described by Section 62.253(b), the commission |
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may, at the worker's request, assist a worker with a disability not |
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retained by an employer to secure employment in a position that pays |
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at least the federal minimum wage. |
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Sec. 62.255. EXTENSION. (a) On request of an employer, the |
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commission may extend the period for compliance with the minimum |
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wage requirements of this chapter for not more than 12 months if the |
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employer: |
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(1) requests the extension not later than March 1, |
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2030; |
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(2) has demonstrated to the commission that an |
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extension would be in the best interest of the employer's current |
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workers with disabilities; and |
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(3) has worked with the commission to develop a |
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transition plan for the payment of at least the federal minimum wage |
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to workers with disabilities. |
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(b) The commission shall make a decision on a request for an |
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extension under Subsection (a) not later than May 1, 2030. |
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(c) The commission may not grant more than one extension to |
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an employer. |
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Sec. 62.256. EXPIRATION. This subchapter expires September |
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1, 2031. |
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SECTION 5. Effective September 1, 2030, Section 201.067(b), |
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Labor Code, is amended to read as follows: |
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(b) Notwithstanding Subsection (a)(1), in this subtitle |
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"employment" includes service performed by an individual whose |
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earning capacity is impaired by age, physical impairment, |
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developmental disability, mental illness, or intellectual |
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disability or injury[, other than an individual compensated as |
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provided by Section 62.057,] and who, after training, is working |
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for a sheltered workshop or other facility operated by a charitable |
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organization: |
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(1) temporarily while awaiting placement in a position |
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of employment in the competitive labor market; or |
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(2) permanently because the individual is unable to |
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compete in the competitive labor market. |
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SECTION 6. This Act takes effect September 1, 2025. |