HBA-EDN H.B. 533 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 533
By: Thompson
Economic Development
7/17/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, the Texas Minimum Wage Act provided a state
minimum wage of $3.35 per hour for nonexempt employees and $1.68 per hour
for tipped employees.  In comparison, the Fair Labor Standards Act of 1938
(FLSA) provides that the current federal minimum wage for nonexempt
employees is $5.15 per hour and $2.13 per hour for tipped employees.  House
Bill 533 increases the state minimum wage rate to the federal minimum wage
rate and makes state minimum wage amounts subject to FLSA standards.  

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. 

ANALYSIS

House Bill 533 amends the Labor Code to require an employer to pay to each
employee the federal minimum wage under the Fair Labor Standards Act of
1938 (FLSA).  The bill provides that in determining the wage of a tipped
employee, the amount paid the employee by the employer is the amount
described as paid to a tipped employee under FLSA.   

EFFECTIVE DATE

September 1, 2001.