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


Office of House Bill AnalysisH.B. 533
By: Thompson
Economic Development
2/16/2001
Introduced



BACKGROUND AND PURPOSE 

The Texas Minimum Wage Act provides that the current state minimum wage is
$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.