House Bill No. 3184 proposes amendments to the Labor Code to allow counties and municipalities in Texas to establish local minimum wage rates that exceed the state minimum wage. Specifically, the bill enables municipalities to adopt a higher minimum wage for services performed within their jurisdiction and allows counties to do the same for unincorporated areas, including those within a municipality's extraterritorial jurisdiction. The bill removes previous provisions that stated the state minimum wage supersedes local ordinances and 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.

Additionally, the bill clarifies that the provisions do not apply to individuals covered by the Fair Labor Standards Act of 1938. The changes aim to empower local governments to set wage standards that better reflect the cost of living in their areas, thereby enhancing economic conditions for workers. The act is set to take effect on September 1, 2025.

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