TX HB5368

Establishes a state minimum wage of $19 per hour, or the federal minimum wage if higher, effective September 1, 2025

Beginning October 1, 2026, requires the Texas Workforce Commission to annually adjust the minimum wage for inflation using the Consumer Price Index for All Urban Consumers (CPI-U), with adjustments calculated each June 1

Prohibits the minimum wage from being reduced below the previous year's rate regardless of inflation calculations

Eliminates the tip credit for tipped employees, requiring employers to pay tipped workers the full federal minimum wage without deductions for tips received

Requires the Texas Board of Criminal Justice to establish mandatory incentive pay scales for prison work programs at the federal minimum wage level, with rules to be adopted by December 1, 2025