Understanding the Texas Minimum Wage: Key Facts and Rates Explained
If you are living or working in Texas, knowing about the minimum wage is essential. Whether you're searching for your first job, starting a small business, or just trying to keep up with labor laws, understanding the state's minimum pay requirements can help you make smart decisions.
Texas Minimum Wage Rate: What Is the Current Number?
The minimum wage in Texas is set at $7.25 per hour. This rate is the same as the federal minimum wage. The Texas minimum wage became effective on July 24, 2009, and has remained unchanged since then.
- Minimum hourly wage: $7.25
- Overtime wage: $10.88 (time and a half after 40 hours per week)
- No statewide plans announced for an increase
- Applies to most workers covered by the Fair Labor Standards Act (FLSA)
If you earn tips or do specific types of work, there may be exceptions under Texas and federal law. But for most hourly employees, $7.25 is the legal least amount you can be paid per hour in Texas.
Are There Cities in Texas With a Higher Minimum Wage?
Some major cities in the U.S.—like Seattle or San Francisco—have raised their local minimum wages above state or federal levels. In Texas, cities such as Austin, Houston, Dallas, and San Antonio do not have a higher local minimum wage. The Texas state government does not allow cities or counties to set their own minimum wage rates. So the minimum wage in Austin, Dallas, Houston, and other Texas cities remains at $7.25 per hour.
Who Is Eligible for Minimum Wage in Texas?
Most hourly workers in Texas are eligible to receive at least the state minimum wage. This includes positions such as:
- Retail workers
- Restaurant and fast-food employees
- Grocery store staff
- Hospitality workers (hotels, motels)
- Receptionists and clerical assistants
- Laborers in factories or warehouses
Minimum wage laws help protect you from being paid less than a fair rate for your work.
Exceptions to the Texas Minimum Wage Law
Some types of workers in Texas can be paid less than the standard minimum wage, according to state and federal rules. These can include:
- Workers who regularly receive tips, like servers and bartenders (tipped minimum wage is $2.13 per hour, but with tips they must make at least $7.25 per hour)
- Some student workers and interns (under certain training programs)
- Migrant and seasonal agricultural workers (with federal exemptions)
- Certain nonprofit and charitable employees
- Employees with disabilities (if special certificates are obtained)
If you think your pay is below minimum wage, you may want to review your situation or contact the Texas Workforce Commission for accurate guidance.
Popular Related Search Queries About Minimum Wage in Texas
- Minimum wage for restaurant workers in Texas
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- Does Texas have a living wage?
- Minimum wage laws for small businesses in Texas
- Texas overtime pay law
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Why Does the Texas Minimum Wage Matter?
The minimum wage is important for many reasons. It sets base pay for workers and can affect your paychecks, job choices, and planning for your future. If you are a business owner, it also impacts your operating costs and payroll planning. For local communities, minimum wage rules can affect the local economy and household budgets.
- Workers: Helps ensure fair pay for entry-level and low-wage jobs.
- Employers: Sets basic legal standards for hiring and compensation.
- Families: Influences overall household income and financial stability.
Even though $7.25 is the legal minimum, it is always a good idea to research for jobs and employers who offer more competitive wages. Some industries and positions pay well above minimum wage, especially in high-demand sectors.
How Texas Minimum Wage Compares to Other States
Many U.S. states and cities have set a higher minimum wage than the federal rate. For example, as of 2024:
- California minimum wage: $16.00 per hour
- New York minimum wage: $15.00 per hour (varies by area)
- Florida minimum wage: $12.00 per hour
- Texas minimum wage: $7.25 per hour
This means Texas is on the lower end compared to many other states. While this can be good for reducing payroll costs for some businesses, it challenges workers to manage on a lower wage, especially in larger cities where the cost of living is higher.
Frequently Asked Questions About Texas Minimum Wage
Your Texas Minimum Wage FAQs Answered
Is the minimum wage in Texas going up in 2024?
As of 2024, there are no new laws in place to increase the minimum wage in Texas. The state minimum wage stays at $7.25 per hour, matching the federal rate. Some lawmakers and city officials have pushed for increases, but no statewide changes have been approved.
Do tipped workers in Texas get minimum wage?
Tipped workers, such as servers and bartenders, have a lower cash wage of $2.13 per hour. However, if their tips plus base pay do not add up to at least $7.25 per hour, employers must make up the difference. This ensures all employees receive at least the minimum wage.
Does Texas have a different minimum wage for minors or student workers?
In most cases, minors and student workers in Texas are entitled to the regular minimum wage of $7.25 per hour. Some exemptions apply for student learners in vocational education and certain training programs, as allowed by federal law.
How is overtime pay calculated for minimum wage workers in Texas?
If you work more than 40 hours in one week, Texas law follows federal regulations. Overtime is paid at 1.5 times your regular rate, meaning at least $10.88 per hour for each overtime hour.
Can a city or county in Texas set a higher minimum wage?
No. Texas state law stops cities and counties from setting a local minimum wage higher than the state or federal rate. All cities must follow the $7.25 per hour minimum unless a new state or federal law is passed.
Recent Changes and Future Possibilities
While some states have increased their minimum wage in recent years, Texas has not changed its minimum wage since 2009. However, the debate continues, and lawmakers review proposals from time to time.
It is wise to keep an eye on news from the Texas Legislature and the U.S. Department of Labor for updates. Any increase to the minimum wage could affect take-home pay, hiring trends, and cost of living for workers across the state.
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