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 employees working within their jurisdiction and permits counties to do the same for employees in 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 wage-setting.

Additionally, the bill clarifies that private entities entering contracts with governmental entities must comply with the established local minimum wage if it is greater than the state minimum wage. It also specifies that the provisions of the bill do not apply to individuals covered by the Fair Labor Standards Act. 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)