Bill > SB339

This bill modifies Texas labor laws to allow municipalities and counties to establish local minimum wages that are higher than the state minimum wage. Specifically, municipalities can set a minimum wage for employees working within city limits, while counties can set a minimum wage for employees working in unincorporated areas, including extraterritorial jurisdictions. The bill removes previous language that prevented local governments from establishing their own minimum wage rates. It clarifies that private entities entering into contracts or agreements with governmental entities must comply with the higher local minimum wage if agreed upon, and this requirement can be enforced against general contractors, subcontractors, and other related parties. The bill also adjusts language related to the Fair Labor Standards Act, maintaining that the state minimum wage law does not apply to persons already covered by federal labor standards. The changes will take effect on September 1, 2025, giving local governments and businesses time to prepare for the new minimum wage flexibility.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB339