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A BILL TO BE ENTITLED
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AN ACT
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relating to the minimum wage and a requirement for a biennial study |
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and report on the living wage in this state, expanding access to |
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childcare, and providing paid parental leave. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. RAISING THE MINIMUM WAGE |
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SECTION 1.01 Section 62.051, Labor Code, is amended to read |
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as follows: |
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Sec. 62.051. MINIMUM WAGE. Except as provided by 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) $15 an hour; 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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SECTION 1.02 Subchapter B, Chapter 62, Labor Code, is |
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amended by adding Section 62.058 to read as follows: |
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Sec. 62.058. BIENNIAL STUDY AND REPORT ON STATE LIVING |
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WAGE. (a) In this section, "consumer price index" means the |
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Consumer Price Index for Urban Wage Earners and Clerical Workers |
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(CPI-W), published by the Bureau of Labor Statistics of the United |
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States Department of Labor. |
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(b) Not later than September 1 of each even-numbered year, |
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the commission shall conduct a study and deliver a report to the |
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legislature on the living wage in this state. In conducting the |
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study, the commission shall seek to determine what wage rate is |
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required to meet minimum standards of living throughout this state, |
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classified on the basis of county or region. In making that |
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determination, the commission shall consider factors such as the |
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consumer price index and the cost of daily necessities in each |
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county or region. |
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(c) In its report, the commission must include information |
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from the preceding two-year period for each county or region |
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regarding: |
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(1) the number of jobs created that pay at least the |
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minimum wage; |
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(2) the effect of the consumer price index on the |
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purchasing power of individuals and families; |
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(3) the cost of daily necessities, such as housing, |
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clothing, food, health care, and child care; |
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(4) the number of small businesses created and closed; |
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(5) housing affordability for individuals and |
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families relying on the minimum wage; and |
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(6) the feasibility of obtaining health care coverage |
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when working in a job paying the minimum wage. |
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(d) The commission may consult with other state agencies as |
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necessary to conduct the study under this section. |
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SECTION 1.03 Section 62.151, Labor Code, is repealed. |
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ARTICLE 2. PAID PARENTAL LEAVE |
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SECTION 2.01 Subtitle B, Title 4, Labor Code, is amended by |
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adding Chapter 320 to read as follows: |
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CHAPTER 320. PAID PARENTAL LEAVE FOR CERTAIN EMPLOYEES |
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Sec. 320.001. DEFINITIONS. In this chapter: |
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(1) "Employee" means an individual who performs |
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services in this state for an employer for compensation under a |
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contract for hire, whether express or implied. The term does not |
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include an independent contractor or a state employee to which |
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Section 661.9125, Government Code, applies. |
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(2) "Employer" means a person that employs 50 or more |
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employees. |
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Sec. 320.002. PAID PARENTAL LEAVE FOR CERTAIN EMPLOYEES. |
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(a) This section applies only to an employee who, during the |
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preceding 12 months, has worked for the employer on a full-time |
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basis. |
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(b) Subject to Subsection (c), an employee to whom this |
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section applies is entitled, on request, to 60 days of paid leave |
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for the: |
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(1) birth of a child by the employee; |
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(2) birth of a child by the employee's spouse; |
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(3) birth of a child by a gestational surrogate; |
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(4) adoption of a child; or |
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(5) provision of foster care or kinship care to a child |
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younger than one year of age who is in the conservatorship of the |
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Department of Family and Protective Services. |
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(c) The amount of paid leave to which an employee is |
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entitled under Subsection (b) for each week of leave taken under |
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that subsection is an amount equal to the employee's average weekly |
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wage during the 12-month period preceding the first day that the |
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employee takes leave under that subsection. |
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(d) This section does not entitle an employee to leave in |
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addition to any leave the employee is entitled to under the federal |
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Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et |
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seq.). An employee is not entitled to paid leave under this section |
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for any period during which the employee is taking other paid leave. |
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(e) An employee may not take leave under this section: |
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(1) later than the first anniversary of the date of |
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birth or adoption of a child or placement of a child in foster care |
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or kinship care; or |
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(2) more than one time during a 12-month period. |
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(f) Notwithstanding any other provision of this section, an |
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employee who takes leave under this section for the purpose |
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described by Subsection (b)(1) may take the leave before the birth |
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of the child. |
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(g) An employer may not take an adverse employment action |
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against an employee because the employee has taken or plans to take |
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paid leave under this section. For purposes of this subsection, |
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"adverse employment action" includes termination or suspension of |
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the employee's employment, an action that affects the employee's |
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compensation, promotion, or performance evaluation, or any other |
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employment action that would dissuade a reasonable employee from |
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taking paid leave under this chapter. |
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Sec. 320.003. PAYMENT OF PAID PARENTAL LEAVE COSTS. (a) To |
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pay for the costs associated with paid leave required under Section |
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320.002, an employer may directly pay those costs or maintain an |
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insurance policy providing coverage for those costs in accordance |
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with this section. |
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(b) An employer electing to maintain an insurance policy |
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under Subsection (a) shall maintain a policy that provides |
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sufficient coverage for the employer's employees who are entitled |
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to paid leave under Section 320.002. To the extent the policy does |
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not cover the costs associated with paid leave required under |
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Section 320.002, the employer is liable for those costs. |
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(c) The commissioner of insurance may adopt rules |
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prescribing sufficient coverage requirements and reasonable rates |
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for an insurance policy described by this section. |
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Sec. 320.004. EXCEPTION. Notwithstanding any other |
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provision of this chapter, an employee is not entitled to paid leave |
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under Section 320.002, and an employer is not required to pay costs |
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associated with that leave under Section 320.003, if no insurer |
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authorized to engage in the business of insurance in this state |
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offers an insurance policy described by Section 320.003 by October |
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1 of the year preceding the year in which the paid leave requirement |
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would take effect. |
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SECTION 2.02 An employee is not entitled to paid leave under |
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Chapter 320, Labor Code, as added by this Act, before January 1, |
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2027. |
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ARTICLE 3. EXPANDED CHILDCARE SUBSIDY |
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SECTION 3.01 Subchapter A, Chapter 302, Labor Code, is |
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amended by adding Section 302.00415 to read as follows: |
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Sec. 302.00415. SUBSIDIZED CHILD CARE PROGRAM: |
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ELIGIBILITY. (a) A child is eligible for subsidized child care if |
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the child: |
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(1) is: |
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(A) younger than four years of age; and |
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(B) a member of a household with a total annual |
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income that is at or below 250 percent of the federal poverty |
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guidelines; or |
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(2) meets eligibility requirements established by the |
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commission. |
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(b) The commission may adopt rules necessary to administer |
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this section. |
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SECTION 3.02 This Act takes effect September 1, 2025. |