Bill > HB3447

This bill proposes significant changes to the minimum wage law in Texas, establishing a new baseline hourly wage of $18 for employees, with provisions for future annual adjustments. Specifically, the bill mandates that employers must pay workers at least $18 per hour, or the federal minimum wage plus 25 cents, whichever is greater. Starting October 1, 2026, the minimum wage will be subject to annual inflation adjustments computed using the Consumer Price Index for All Urban Consumers (CPI-U), as determined by the U.S. Department of Labor. The Texas workforce commission will be responsible for calculating and setting the state minimum wage each year based on inflation rates, ensuring the wage keeps pace with economic changes. The bill also repeals a previous section of labor code related to minimum wage and is scheduled to take effect on September 1, 2025. An important caveat is that the new minimum wage requirements do not apply to certain types of compensation specified in a separate section of the labor code, providing flexibility for specific employment scenarios.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3447