SB 339

relating to authorization for a county or municipality to establish
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 62.0515, Labor Code, is amended to read
Sec. 62.0515.  [APPLICATION OF] MINIMUM WAGE ESTABLISHED BY
[TO] CERTAIN GOVERNMENTAL ENTITIES;  CERTAIN AGREEMENTS WITH
GOVERNMENTAL ENTITIES.  (a)  Notwithstanding Section 62.151:
(1)  a municipality may adopt a minimum wage that is
greater than the minimum wage established by Section 62.051 to be
paid by an employer to each employee for services performed in the
(2)  a county may adopt a minimum wage that is greater
than the minimum wage established by Section 62.051 to be paid by an
employer to each employee for services performed in the
unincorporated areas of the county, including areas located within
the extraterritorial jurisdiction of a municipality.  [Except as
otherwise provided by this section, the minimum wage provided by
this chapter supersedes a wage established in an ordinance, order,
or charter provision governing wages in private employment, other
than wages under a public contract.]
(b)  [This section does not apply to any state or federal job
training or workforce development program.
[(c)  This section does not apply to a minimum wage
established by a governmental entity that applies to a contract or
agreement, including a non-annexation agreement, entered into by a
governmental entity and a private entity.]  A private entity that
enters into a contract or agreement, including a non-annexation
agreement, with a governmental entity, under the terms of which the
private entity agrees to comply with a minimum wage that is greater
than the minimum wage established by Section 62.051 or, if
applicable, Subsection (a) of this section [the governmental
entity], is subject to the terms of that contract or agreement, and
those terms apply to and may be enforced against a general
contractor, subcontractor, developer, and other person with which
the private entity contracts in order to comply with the provisions
of the original contract or agreement.
[(d)]  For purposes of this subsection [section],
"governmental entity" includes a municipality, a county, a special
district or authority, a junior college district, or another
political subdivision of this state.
SECTION 2.  Section 62.151, Labor Code, is amended to read as
Sec. 62.151.  PERSON COVERED BY FEDERAL ACT.  This chapter
does [and a municipal ordinance or charter provision governing
wages in private employment, other than wages under a public
contract, do] not apply to a person covered by the Fair Labor
Standards Act of 1938 (29 U.S.C. Section 201 et seq.).
SECTION 3.  This Act takes effect September 1, 2025.