Houston City Council has approved ordinance amendments introduced by Council Member Alejandra Salinas that strengthen wage, workplace safety and employee benefit requirements for companies seeking new city property tax abatements.

The measure establishes additional labor standards for businesses receiving property tax incentives, linking public financial benefits to improved working conditions and protections for employees involved in eligible projects.

The amendments require companies to meet a higher minimum wage tied to the City of Houston’s municipal wage and provide prevailing wages for construction workers. They also establish requirements for workers’ compensation coverage for construction workers and health insurance benefits for project employees and eligible dependents.

The ordinance further strengthens contractor accountability by prohibiting the use of contractors with substantiated wage theft or Occupational Safety and Health Administration (OSHA) safety violations.

Additional provisions increase apprenticeship participation requirements to 15% across all trades through locally certified apprenticeship programs. The amendments also introduce stronger auditing requirements to monitor compliance with the new standards and contractor safety records.

Child-care subsidies for employees are also included as an eligible community benefit under the updated requirements.

Property tax abatements are among the tools Houston uses to attract business investment, support company expansion and encourage job creation. The ordinance changes add worker protections to the conditions companies must meet when seeking new city tax incentives.

The Gulf Coast Area Labor Federation, AFL-CIO, supported the amendments, which focus on improving compensation, workplace safety, access to health care and career development opportunities for Houston workers.

Linda Morales, organizing director of the Texas Gulf Coast Area Labor Federation, AFL-CIO, said the ordinance represents progress toward ensuring companies benefiting from public incentives provide quality jobs and meaningful opportunities for workers.

The amendments were spearheaded by Salinas as part of an effort to ensure economic development incentives also produce tangible benefits for the workforce.

The new requirements establish additional expectations for companies seeking city property tax abatements, reinforcing the connection between public investment, business growth and worker protections.