The bill, H.B. No. 3447, proposes amendments to the Texas Labor Code regarding the minimum wage. It establishes a new minimum wage of not less than $18 per hour for employees, with provisions for adjustments based on inflation starting June 1, 2026. Specifically, the bill mandates that the minimum wage will be adjusted annually according to the consumer price index, ensuring that it keeps pace with inflation. Additionally, it allows for a comparison with the federal minimum wage, stipulating that employees must be paid the greater of the state minimum wage or the federal minimum wage plus 25 cents per hour.

Furthermore, the bill repeals Section 62.151 of the Labor Code, which may have contained previous minimum wage regulations. The new provisions aim to provide a more robust framework for minimum wage standards in Texas, ensuring that wages are not only increased but also regularly adjusted to reflect economic conditions. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Labor Code 62.051, Labor Code 62.151 (Labor Code 62)