Bill > HB5368

This bill proposes significant changes to minimum wage regulations in Texas, establishing a state minimum wage of $19 per hour starting immediately, with an annual inflation adjustment mechanism beginning in October 2026. The bill mandates that employers must pay employees either the state minimum wage or the federal minimum wage, whichever is greater. For tipped employees, the bill eliminates the previous tip credit system and requires employers to pay the full federal minimum wage without reducing wages based on tips. The bill also modifies government code sections related to work programs for inmates, requiring that pay levels for work program participants and inmates in agricultural, industrial, or other work programs be set at a minimum of the federal minimum wage. Additionally, the bill changes language from permissive ("may") to mandatory ("shall") for developing and administering pay scale programs for work participants and inmates. The legislation is set to take effect on September 1, 2025, with the Texas Board of Criminal Justice required to adopt new rules by December 1, 2025, ensuring compliance with the updated minimum wage requirements across various employment contexts.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5368