HB 958 -- EXEMPTIONS FROM MINIMUM WAGE AND OVERTIME COMPENSATION REQUIREMENTS

SPONSOR: Miller

This bill specifies that beginning on or after January 1, 2026, an employer can pay an employee wages at a rate that is lower than the State minimum wage and the employer can be exempt from overtime requirements for such employee under the Minimum Wage Law, under any of the following circumstances:

(1) Any employee who is under 21 years of age at the start of a pay period;

(2) Any employee of a business that employs 49 or fewer full- or part-time Fair Labor Standards Act (FLSA) nonexempt employees;

(3) Any employee who voluntarily terminates employment without providing and completing a two-week notice period; or

(4) Any employee who was notified of a company policy during the employee's on-boarding or annually, as indicated in the bill, and received one written notice of violation of a company policy, or the employee received two written notices of violation of the company policy as indicated in the bill.

The bill requires employers to maintain records of written notices provided to employees for the policy violations.

The bill also includes provision relating to co-employment providers and details who is included in the employee count.

The bill includes a severability clause.

Statutes affected:
Introduced (1702H.02): 290.509