Houston City Council requires $18 minimum wage for tax abatement businesses
The Houston City Council approved new requirements on Wednesday, October 28, 2026 for businesses receiving tax abatements from the city, including an $18 minimum wage, health insurance and workers' compensation for injuries. The rules also bar contractors with recent OSHA violations or wage theft history from participating in tax abatement construction projects.
- When it happened
- Wednesday, October 28, 2026
- Where
- Houston
- First reported by an outlet
- Oct 28, 2026 at 10:41 am
- Confirmed by
- the original record or a trusted outlet
Taxes & money
| What | Amount | Who pays |
|---|---|---|
| minimum wage required for tax abatement businesses | $18 an hour[1] | businesses receiving tax abatements |
| maximum property tax relief for tax abatement projects | up to 90%[1] | City of Houston |
Who's involved
The facts
- The new rules tie workers' pay to the city's minimum wage for municipal employees—$18 an hour as of July 2026—or to prevailing wages for construction work.[1]
- The Houston City Council has approved 20 tax abatements since 2004, including for Chevron, Kroger, Memorial Hermann, Halliburton and UPS.[1]
- For each tax abatement project, companies promised to create jobs and generate community benefits in exchange for a negotiated amount of property tax relief—up to a maximum of 90% over ten years.[1]
- Contractors with a recent history of violating OSHA rules or committing wage theft will be barred from participating in tax abatement-related construction projects.[1]
- A proposal by council member Fred Flickinger to limit OSHA violation sanctions to violations in Texas, Oklahoma and New Mexico failed in an 8-8 vote on October 28, 2026.[1]
- Fred Flickinger was the sole vote against the overall tax abatement update.[1]
- The updated program strengthens and expands requirements for apprenticeship training opportunities.[1]
Who said what
- Alejandra Salinas, Houston City Council member Tax abatements must be used wisely and in a way that benefits all Houstonians, not just the companies that receive the tax break.[1]
- Fred Flickinger, Houston City Council member In a perfect world, the city wouldn't give out tax abatements, and the rules have muddied the water with a lot of different wish lists from people who want things done.[1]
- Jennifer Hernandez, director of government affairs for the International Union of Painters and Allied Trades district council 10 The city should expect more than a promise of economic growth in exchange for tax breaks; it should expect good jobs, fair wages, safe working conditions and benefits that help working families make ends meet, and economic development should not come at the expense of workers or taxpayers.[1]
Sources
- News Center Houston to require better wages, health benefits for businesses receiving tax breaks Houston Public Media · Oct 28, 2026
Written by AI from the sources above, under fixed rules: every fact is cited, claims are kept apart from facts, and dollar figures appear only when a source states them. Mistakes get corrected in public.