HB 3494 phases out subminimum wages for workers with disabilities in Texas sheltered workshops, aligning with federal standards. By September 1, 2030, all employers paying below the federal minimum wage must raise wages to at least the federal minimum wage. The Texas Workforce Commission (TWC) will assist employers in developing transition plans, connecting workers with benefits counselors, and ensuring workers are retained whenever possible. Employers may apply for a one-year extension under certain conditions, but no additional extensions will be granted beyond September 1, 2031​.