2005 Texas Labor Code CHAPTER 62. MINIMUM WAGE


LABOR CODE
CHAPTER 62. MINIMUM WAGE
SUBCHAPTER A. GENERAL PROVISIONS
§ 62.001. SHORT TITLE. This chapter may be cited as the Texas Minimum Wage Act. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.002. DEFINITIONS. In this chapter, unless the context requires a different definition: (1) "Agricultural piece rate worker" means a person: (A) who is employed as a hand harvest laborer in agriculture; and (B) whose pay is computed on a piece rate in an operation for which the pay has been and is customarily and generally recognized as having been computed on a piece rate in the region of employment. (2) "Agriculture" includes: (A) farming in all its branches; (B) cultivating and tilling the soil; (C) dairying; (D) producing, cultivating, growing, and harvesting an agricultural or horticultural commodity, including a commodity defined as an agricultural commodity by Section 15(g), Agricultural Marketing Act (12 U.S.C. Section 1141j(g)); (E) raising livestock, bees, fur-bearing animals, or poultry; and (F) any practice performed by a farmer or on a farm as an incident to or in conjunction with farming operations, including: (i) forestry or lumber operations; (ii) preparation for market; and (iii) delivery to storage, market, or a carrier for transportation to market. (3) "Commission" means the Texas Employment Commission. (4) "Employ" includes to permit to work. (5) "Employee" includes any individual employed by an employer. (6) "Employer" includes a person acting directly or indirectly in the interest of an employer in relation to an employee. (7) "Person" means an individual, partnership, association, corporation, business trust, legal representative, or any organized group of persons. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.003. EARNINGS STATEMENT. (a) At the end of each pay period, an employer shall give each employee a written earnings statement covering the pay period. (b) An earnings statement must be signed by the employer or the employer's agent and must show: (1) the name of the employee; (2) the rate of pay; (3) the total amount of pay earned by the employee during the pay period; (4) any deduction made from the employee's pay and the purpose of the deduction; (5) the amount of pay after all deductions are made; and (6) the total number of: (A) hours worked by the employee if the employee's pay is computed by the hour; or (B) units produced by the employee during the pay period if the employee's pay is computed on a piece rate (c) An earnings statement may be in any form determined by the employer. The information required by Subsection (b) may be stated on a check voucher or bank draft given to an employee for the employee's wages. (d) In this section, "pay period" means the period that an employee works for which salary or wages are regularly paid under the employee's employment agreement. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended by Acts 2003, 78th Leg., ch. 461, § 1, eff. Sept. 1, 2003. § 62.004. PROVISION OF INFORMATION. The commission shall provide information to the public about this chapter to ensure that both employers and employees in this state are fully aware of: (1) their respective rights and responsibilities; (2) the specified exemptions; and (3) the penalties and liabilities that may be incurred for a violation of this chapter. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.005. COLLECTIVE BARGAINING NOT IMPAIRED. This chapter does not interfere with or in any way diminish the right of employees to bargain collectively with their employer through representatives chosen by the employees to establish wages that exceed the applicable minimum wage under this chapter. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993.
SUBCHAPTER B. MINIMUM WAGE
§ 62.051. MINIMUM WAGE. Except as provided by Section 62.057, an employer shall pay to each employee the federal minimum wage under Section 6, Fair Labor Standards Act of 1938 (29 U.S.C. Section 206). Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended by Acts 2001, 77th Leg., ch. 386, § 1, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 461, § 2, eff. Sept. 1, 2003. § 62.0515. APPLICATION OF MINIMUM WAGE TO CERTAIN GOVERNMENTAL ENTITIES; CERTAIN AGREEMENTS WITH GOVERNMENTAL ENTITIES. (a) 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 established by 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 section, "governmental entity" includes a municipality, a county, a special district or authority, a junior college district, or another political subdivision of this state. Added by Acts 2003, 78th Leg., ch. 461, § 3, eff. Sept. 1, 2003. § 62.052. TIPPED EMPLOYEES. (a) 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 Section 3(m), Fair Labor Standards Act of 1938 (29 U.S.C. Section 203(m)). (b) In this section, "tipped employee" means an employee engaged in an occupation in which the employee customarily and regularly receives more than $20 a month in tips. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended by Acts 2001, 77th Leg., ch. 386, § 2, eff. Sept. 1, 2001. § 62.053. COST OF MEALS OR LODGING. In computing the wage paid to an employee, an employer may include the reasonable cost to the employer of furnishing meals, lodging, or both to the employee if: (1) meals or lodging customarily are furnished by the employer to employees; and (2) the cost of the meals and lodging are separately stated and identified in the earnings statement furnished to the employee under Section 62.003. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.054. CERTAIN EMPLOYEES SUBJECT TO CALL. An employer may not be required to pay an employee who lives on the premises of a business and who is assigned certain working hours plus additional hours when the employee is subject to call for more than the number of hours the employee actually works or is on duty because of assigned working hours. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.057. PATIENTS AND CLIENTS OF TEXAS DEPARTMENT OF MENTAL HEALTH AND MENTAL RETARDATION. (a) A person may be compensated for services rendered to the Texas Department of Mental Health and Mental Retardation or a department facility at a percentage of the base wage adopted under this section if: (1) the person is a patient or client of a department facility; (2) the person's productive capacity is impaired; (3) the person: (A) assists in the operation of the facility as part of the person's therapy; or (B) receives occupational training in a sheltered workshop or other program operated by the department; and (4) the facility or department derives an economic benefit from the person's services. (b) The percentage of the base wage paid to a person under Subsection (a) must correspond to the percentage of the person's productive capacity compared with the capacity of an employee who performs the same or similar tasks and who is not similarly impaired. (c) The department shall adopt rules to determine the base wage and the percentage of productive capacity of the patients and clients and other rules necessary to implement this section. (d) Services rendered and payment provided under this section may not be construed as creating an employer-employee relationship between the department and the patient or client engaged in occupational training or therapeutic or rehabilitative services. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993.
SUBCHAPTER C. AGRICULTURAL PIECE RATE WORKERS
§ 62.101. DEFINITION.. In this subchapter, "commissioner" means the commissioner of agriculture. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.102. MINIMUM WAGE FOR AGRICULTURAL PIECE RATE WORKERS. (a) A person employed as an agricultural piece rate worker to harvest a commodity for which a piece rate has been established by the commissioner under this subchapter is entitled to receive not less than the minimum hourly wage established under Section 62.051. (b) Section 62.051 applies to an employer employing a hand harvest laborer to harvest a commodity for which a piece rate has not been established. (c) An employer may not pay an agricultural piece rate worker at a piece rate less than the rate determined by the commissioner under Section 62.103. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.103. PIECE RATE DETERMINED BY COMMISSIONER. (a) The commissioner shall determine a piece rate for each agricultural commodity that is commercially produced in substantial quantity in this state. (b) For each agricultural commodity, the piece rate must be equivalent to the minimum hourly wage for other agricultural workers, as provided by Section 62.051, so that when payment by unit of production is applied to a worker of average ability and diligence in harvesting the commodity, the worker receives an amount equal to the minimum hourly wage for other agricultural workers. (c) If an agricultural piece rate worker harvests more than the number of units of a particular commodity that would provide the established minimum wage, the worker shall be paid for the total number of units of production that the worker harvests. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.104. COLLECTION OF INFORMATION. (a) The commissioner shall collect sufficient information about the actual productivity of hand harvesters of agricultural commodities in this state to reasonably determine a piece rate for each commodity. (b) The commissioner shall retain all information used for determining a piece rate while the piece rate is in effect. (c) All information used for determining a piece rate shall be available for public inspection. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.105. COMPUTATION OF PIECE RATE. (a) From the information collected under Section 62.104, the average hourly productivity of hand harvest laborers for each agricultural commodity commercially produced in substantial quantity in this state shall be computed and expressed in: (1) units of the commodity; or (2) units of weight or measure customarily used in regard to the commodity. (b) The piece rate established by the commissioner for a commodity must equal the minimum wage for agricultural workers under Section 62.051 divided by the average hourly production of hand harvesters of the commodity, rounded to the nearest cent. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.106. HEARINGS. (a) Before issuing an order establishing a piece rate, the commissioner or a person designated by the commissioner shall hold a public hearing at which the proposed rate and the information from which the rate is determined shall be presented. (b) Agricultural employers and employees or their representatives shall be given a reasonable opportunity to be heard and to protest the establishment of a proposed rate. (c) After a hearing, the commissioner may modify a proposed rate before finally establishing the rate. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.107. ORDER ESTABLISHING PIECE RATE. (a) An order of the commissioner establishing or modifying a piece rate may not take effect before the 31st day after the date the order is issued. (b) Each order establishing a piece rate shall be kept on file in the commissioner's office in Austin, Texas. (c) The commissioner shall furnish a copy of each order establishing a piece rate to the Texas Workforce Commission. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended by Acts 2003, 78th Leg., ch. 817, § 10.12, eff. Sept. 1, 2003. § 62.108. RULES. The commissioner may adopt rules necessary for the proper administration of this subchapter, including procedures for giving notice of and conducting hearings. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.109. APPEAL OF COMMISSIONER'S DECISION. (a) Unless set aside by a judgment of a court of competent jurisdiction, the commissioner's decision establishing a piece rate is final and binding on all parties subject to this chapter. (b) If a piece rate for a commodity is set aside by final judgment of a court of competent jurisdiction, the minimum hourly wage provided by Section 62.051 applies to harvesting the commodity until a valid piece rate is established. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.110. CHANGE IN PIECE RATE. A new piece rate may be established for a commodity in the manner provided for the establishment of an initial piece rate at any time the information available to the commissioner indicates a substantial change in condition. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.111. ANNUAL REVIEW OF PIECE RATES. The commissioner shall review each piece rate at least annually and shall determine if a new piece rate is needed. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.112. PIECE RATE FOR CERTAIN COMMODITIES PROHIBITED. (a) A piece rate may not be established for harvesting of a commodity if, in the commissioner's judgment: (1) sufficient information is not available for determining the average hourly productivity of hand harvesters of the commodity; or (2) the commodity is not commercially produced in this state in sufficient quantity to justify establishing a piece rate. (b) The commissioner's decision not to establish a piece rate for a particular commodity does not preclude the subsequent establishment of a piece rate for the commodity when, in the commissioner's judgment: (1) sufficient information is available; and (2) the quantity of production of the commodity justifies establishing a piece rate. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.113. APPLICATION TO DIRECT EMPLOYMENT AND CONTRACT LABOR. This subchapter applies to: (1) a person directly employed by an owner, operator, or manager of a farm; and (2) a person whose services to perform agricultural labor are furnished to an employer by someone other than the laborer. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.114. SUSPENSION OF PIECE RATE. The commissioner by order may suspend a piece rate in a specified area for not more than 30 days in an emergency caused by: (1) a flood, hurricane, or other natural disaster; or (2) any occurrence that may result in the excessive loss of agricultural products. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993.
SUBCHAPTER D. EXEMPTIONS
§ 62.151. PERSON COVERED BY FEDERAL ACT. This chapter 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.). Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended by Acts 2003, 78th Leg., ch. 461, § 4, eff. Sept. 1, 2003. § 62.152. EMPLOYMENT BY RELIGIOUS, EDUCATIONAL, CHARITABLE, OR NONPROFIT ORGANIZATION. An employer is exempt from this chapter with respect to the employment of a person who is: (1) a member of a religious order while the person is performing a service for or at the direction of the order; (2) a duly ordained, commissioned, or licensed minister, priest, rabbi, sexton, or Christian Science reader while the person is performing services in that capacity for a church, synagogue, or religious organization; (3) engaged in the activities of a religious, educational, charitable, or nonprofit organization in which: (A) the employer-employee relationship does not in fact exist; or (B) the services are rendered to the organization gratuitously; (4) employed by the Boy Scouts of America, the Girl Scouts of America, or a local organization affiliated with those organizations; (5) employed by a camp of a religious, educational, charitable, or nonprofit organization; or (6) employed with the person's spouse by a nonprofit educational institution to serve as the parents of a child: (A) who is an orphan; (B) one of whose natural parents is deceased; or (C) who is enrolled in and resides in residential facilities of the institution, if the employee and the employee's spouse: (i) reside in residential facilities of the institution; and (ii) receive, without cost, board and lodging from the institution. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.153. EMPLOYMENT OF CERTAIN PROFESSIONALS, SALESPERSONS, AND PUBLIC OFFICIALS. An employer is exempt from this chapter with respect to the employment of a person: (1) employed in a bona fide executive, administrative, or professional capacity; (2) employed as an outside salesperson or collector and paid a commission; or (3) who performs services for a political subdivision as an elected official or as a member of a legislative body. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.154. DOMESTIC EMPLOYMENT. An employer is exempt from this chapter with respect to the employment of a person who: (1) performs domestic services in or about a private home, including a person who performs the duties of baby-sitting in or out of the employer's home; or (2) lives in or about a private home and furnishes personal care for a resident of the home. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.155. EMPLOYMENT OF CERTAIN YOUTHS AND STUDENTS. An employer is exempt from this chapter with respect to the employment of a person who: (1) is less than 18 years of age and is not a high school graduate or a graduate of a vocational training program, other than a person who is employed in agriculture and whose pay is computed on a piece rate; (2) is less than 20 years of age and is a student regularly enrolled in a high school, college, university, or vocational training program, other than a person who is employed in agriculture and whose pay is computed on a piece rate; or (3) has a disability and who is: (A) not more than 21 years of age; (B) a client of vocational rehabilitation; and (C) participating in a cooperative school-work program. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.156. EMPLOYMENT OF INMATES. An employer is exempt from this chapter with respect to the employment of a person who performs services while imprisoned in the institutional division of the Texas Department of Criminal Justice or while confined in a local jail. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.157. EMPLOYMENT OF CERTAIN FAMILY MEMBERS. An employer is exempt from this chapter with respect to employment of the employer's brother, sister, brother-in-law, sister-in-law, child, spouse, parent, son-in-law, daughter-in-law, ward, or person in loco parentis to the employee. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.158. CERTAIN AMUSEMENT AND RECREATIONAL ESTABLISHMENTS. An employer is exempt from this chapter with respect to employment in an amusement or recreational establishment that: (1) does not operate for more than seven months in a calendar year; or (2) had average receipts for any six months of the preceding calendar year of not more than 33-1/3 percent of its average receipts for the other six months of the year. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.159. CERTAIN EMPLOYERS NOT CONTRIBUTING TO UNEMPLOYMENT COMPENSATION FUND; CERTIFICATE. (a) An employer that is not liable for payment of contributions to the unemployment compensation fund under Subtitle A, Title 4, is exempt from this chapter, except with respect to employment of a person in agriculture. (b) The commission shall furnish a certificate stating whether a specified employer is liable for the payment of contributions to the unemployment compensation fund under Subtitle A, Title 4, to a person making a written request for a certificate. The commission may require payment of a fee not to exceed $5 for the issuance of the certificate. (c) A certificate issued under this section is admissible in evidence in an action brought by an employee under Subchapter E. In the absence of evidence to the contrary: (1) it is presumed that the facts stated in the certificate are true; and (2) the certificate is conclusive as to whether the named employer is exempt from this chapter under this section. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 76, § 9.16, eff. Sept. 1, 1995. § 62.160. AGRICULTURAL EXEMPTIONS. (a) An employer is exempt from this chapter with respect to employment of a person in dairy farming. (b) Sections 62.051-62.054 and Subchapter C do not apply to an agricultural employer with respect to an employee engaged in the production of livestock. (c) In this section, "production of livestock" includes: (1) any livestock operation, without regard to size or type of location, in which the land produces forage or feedstuffs, including naturally or artificially revegetated forage or feedstuffs; (2) breeding, feeding, watering, containing, maintaining, and caring for livestock; (3) production of livestock in feedlots; and (4) all other activities necessary or useful to the raising of livestock. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.161. SHELTERED WORKSHOPS. A nonprofit charitable organization that is engaged in evaluating, training, and employment services for clients with disabilities and that complies with federal regulations covering those activities is considered to have complied with this chapter. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993.
SUBCHAPTER E. CIVIL PENALTY
§ 62.201. CIVIL PENALTY. An employer who violates Section 62.051, 62.052, 62.053, or 62.054 or Subchapter C is liable to an affected employee in the amount of the unpaid wages plus an additional equal amount as liquidated damages. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. Amended by Acts 2003, 78th Leg., ch. 461, § 5, eff. Sept. 1, 2003. § 62.202. LIMITATIONS. An action to recover a liability imposed by this subchapter must be brought not later than the second anniversary of the date on which the unpaid wages are due and payable. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.203. PLAINTIFFS. (a) An action to recover a liability under this subchapter may be brought by an employee for that employee and other similarly affected employees. (b) An employee may not be a plaintiff to an action brought under this subchapter unless: (1) the employee consents in writing; and (2) the consent is filed in the court in which the action is brought. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.204. REQUIRED FINDINGS. At the trial of an action brought under this subchapter, the plaintiff recovers if the jury or the court finds from a preponderance of the evidence that: (1) the plaintiff is or has been employed by the defendant at any time during the two years preceding the institution of the action; (2) the original petition filed by or on behalf of the plaintiff is verified; and (3) the defendant failed to pay the plaintiff the minimum wage under this chapter. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993. § 62.205. ATTORNEY'S FEES; COSTS. In addition to a judgment awarded to the plaintiff, the court shall allow reasonable attorney's fees and costs of the action to be paid by the defendant. Acts 1993, 73rd Leg., ch. 269, § 1, eff. Sept. 1, 1993.

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