H.B. No. 3447 proposes amendments to the Texas Labor Code regarding the minimum wage. The bill 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 for urban consumers, ensuring that the wage keeps pace with inflation. Additionally, it allows for a minimum wage that is either the established rate or the federal minimum wage plus 25 cents per hour, whichever is greater.

The bill also repeals Section 62.151 of the Labor Code, which may have contained previous minimum wage provisions. The changes are set to take effect on September 1, 2025, allowing time for employers and employees to prepare for the new wage structure. Overall, this legislation aims to enhance the financial well-being of workers in Texas by establishing a higher minimum wage and ensuring it remains relevant through annual adjustments.

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