The bill, S.B. No. 339, amends the Labor Code to authorize counties and municipalities in Texas to establish local minimum wage rates that exceed the state minimum wage. Specifically, it allows municipalities to adopt a higher minimum wage for services performed within their jurisdiction and permits counties to do the same for unincorporated areas, including those within a municipality's extraterritorial jurisdiction. The bill removes previous language that stated the state minimum wage supersedes local ordinances regarding wages in private employment, thereby granting local governments more autonomy in setting wage standards.

Additionally, the bill clarifies that private entities entering contracts with governmental entities must comply with the agreed-upon minimum wage, which can be higher than the state minimum wage. It also specifies that the provisions of the Fair Labor Standards Act of 1938 will not apply to the local minimum wage regulations. The changes are set to take effect on September 1, 2025.

Statutes affected:
Introduced: Labor Code 62.0515, Labor Code 62.151 (Labor Code 62)