HBA-DMD H.B. 327 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 327
By: Thompson
Economic Development
4/19/1999
Committee Report (Amended)



BACKGROUND AND PURPOSE 

Under current state law, the state minimum wage is $3.35 per hour.  H.B.
327 increases the state minimum wage rate to the federal minimum wage rate,
with certain exceptions. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 62.051, Labor Code, to require an employer to
pay each employee the federal minimum wage under Section 6, Fair Labor
Standards Act of 1938 (29 U.S.C. Section 206), except as provided by
Section 62.055 (Special Wage for Certain Employees) and Section 62.057
(Patients and Clients of Texas Department of Mental Health and Mental
Retardation). Deletes the provision which authorizes payment of a wage of
not less than $3.35 an hour. 

SECTION 2.  Effective date:  September 1, 1999.

SECTION 3.  Emergency clause.

EXPLANATION OF AMENDMENTS

Adds new SECTION 2, to amend Section 62.052(a), Labor Code, to establish
that in determining the wage of a tipped employee, the amount paid by the
employer is the federal wage as defined under the Fair Labor Standards Act
of 1938 (29 U.S.C. Section 203(m)). Existing law provides that, for
purposes of such a determination, the amount paid by the employer is
considered to be increased because of tips by an amount determined by the
employer, but that does not exceed 50 percent of the applicable minimum
wage. Renumbers subsequent sections of this bill accordingly.