Texas Minimum Wage Laws – 2022


Minimum Wage

Texas’ current minimum wage is $7.25 per hour.

The state has adopted, by statute, the federal minimum wage rate set forth in the Fair Labor Standards Act (see TX Labor Code 62.051).

Texas’ minimum wage law does not apply to employees covered by the Fair Labor Standards Act.

Thus, for most employers and employees, minimum wage obligations and minimum wage rules are governed by the Fair Labor Standards Act.

For more information, see TX Labor Code 62.151.


Minimum Wage Calculator


Tip Minimum Wage

Texas’ current minimum wage for tipped employees is $2.13 per hour.

Texas has adopted, by statute, the federal minimum tipped wage rate set forth in the Fair Labor Standards Act TX Labor Code 62.052.

The law defines a “tipped employee” as one that consistently receives tips of $20 or more a month while employed in an occupation, according to the TX Labor Code 62.052.

Other requirements and limitations related to paying employees tipped wages are likely governed by the Fair Labor Standards Act.

Again, it is important to note that Texas’ minimum wage law does not apply to employees covered by the Fair Labor Standards Act.

Therefore, for most employers and employees, including tipped employees, tipped minimum wage obligations are governed by the Fair Labor Standards Act.To get more information, check TX Labor Code 62.151.

Tip Pooling and Sharing

Texas minimum wage laws do not address whether an employer may require employees to participate in a tip pooling or tip sharing arrangement.


Subminimum wage

Employees with Disabilities

For most Texas employers, the standards regarding subminimum wage rates and the lowest minimum wage for employees with disabilities are governed by the Fair Labor Standards Act.

Texas law exempts from its coverage nonprofit charitable organizations that engage in evaluating, training, and employment services for a disabled individual employee.

That applies only if the organization is compliant with federal regulations covering those activities.

Texas labor laws also exclude employees with disabilities from the minimum wage requirements if the employee is:

  • Not more than 21 years old;
  • A client of vocational rehabilitation; and
  • Participating in a cooperative school-work program.

Get more information by visiting TX Labor Code 62.155.


Trainees

For most Texas employers, the standards regarding subminimum wage rates for trainee employees are governed by the Fair Labor Standards Act.

For employers with employees not covered by the Fair Labor Standards Act, such as trainees, Texas law does not provide any exceptions from its minimum wage requirements.

Apprentices

For most Texas employers, the standards regarding subminimum wage rates for apprentices are governed by the Fair Labor Standards Act.For employers with employees not covered by the Fair Labor Standards Act, such as apprentices, Texas law does not provide any exceptions from its minimum wage requirements.


Learners

For most Texas employers, the standards regarding subminimum wage rates for apprentices are governed by the Fair Labor Standards Act.

For employers with employees not covered by the Fair Labor Standards Act, such as learners, Texas law does not provide any exceptions from its minimum wage requirements.


Student Learners

For most Texas employers, the standards regarding subminimum wage rates for learners, who are often seasonal employees, are governed by the Fair Labor Standards Act.

For employers with employees not covered by the Fair Labor Standards Act, such as learners, Texas law does not provide any exceptions from its minimum wage requirements.


Student Workers

For most Texas employers, the standards regarding subminimum wage rates for student workers are governed by the Fair Labor Standards Act. TX Labor Code 62.151.

For employers with employees who are not covered by the Fair Labor Standards Act, Texas labor laws exempt from it minimum wage requirements employee who are less than 20 years old and is a student regularly enrolled in a high school, college, university, or vocational training program, other than a person who is employed in agriculture and whose pay is computed on a piece rate. TX Labor Code 62.155

Also, Texas labor laws exempt from its minimum wage employees who are less than 18 years old and is not a high school graduate or a graduate of a vocational training program, other than a person who is employed in agriculture and whose pay is computed on a piece rate. TX Labor Code 62.155


Texas Minimum Wage Laws 2022 FAQs

What do Texas labor laws state about agricultural employment?

Employers in the agricultural industry are entitled to a primary exemption from a minimum wage rate and overtime provisions if they were unable to use more than 500 “man-days” of work. 

What this means is that an agricultural employee has rendered work, within a workday, for a minimum of one hour.

The exemptions include agricultural piece-rate workers, which are harvest laborers from local residences who travel daily to work.

For more information on other labor law exemptions and agricultural employment, check specific details here.

Whether as employer or employee, what other source of info can I consult regarding Texas labor laws?

You can check updated employment law news and also subscribe to a newsletter for business owners. The Texas Economic Development even sends updates straight to its subscribers’ inboxes. 

These are part of the government’s efforts in helping all kinds of businesses.

Whether mid-sized businesses, recreational establishments, and even prospective businesses, they can help you find ways to jumpstart or grow your company.

The resource also provides a helpful business perspective for all kinds of employers (such as public employers and non-agricultural employers).

For other questions about employers’ compliance regarding minimum wage, it is best to seek legal advice from a tax professional or tax attorney.

What factors do business owners in Texas have to consider about minimum wage increases?

There are various points that companies need to consider when determining minimum wage rates and increases. Some of these are:

  • The current federal minimum wage. Since Texas’ current minimum wage is based on the federal rate, you must stay up to date with any related changes.
  • The types of employees. You need to consider the type of employee you hired as their compensation may also vary.

For instance, non-exempt workers have a different hourly wage rate compared to those who receive special exemptions. 

In addition, you need to consider the rate for overtime and the rate before tips, depending on the type of employee and the industry he belongs to.

The days of employment and working hours. Some employers resort to irregular hours in an effort to bring down their regular pay rate.

However, we find that having a flexible work hour plan is ideal.

Don’t forget to account for regular hours, overtime hours, and even school hours for your qualified student employees.

Other hour-related factors include your hour requirement, hour restriction, hour minimums, and hour maximums.

Business productivity and profitability. The main machine that will keep your business operations running and the payroll week rolling despite economic challenges is the company’s efficiency and revenue.

How can you make your business better? Do you need to give your business premises a quick refresh? How about offering a return policy? All of these factors will help ease the financial pressure if there’s a sudden increase in the federal minimum rate.


Other State’s Minimum Wage Information

AlabamaHawaiiMassachusettsNew MexicoSouth Dakota
AlaskaIdahoMichiganNew YorkTennessee
ArizonaIllinoisMinnesotaNorth CarolinaTexas
ArkansasIndianaMississippiNorth DakotaUtah
CaliforniaIowaMissouriOhioVermont
ColoradoKansasMontanaOklahomaVirginia
ConnecticutKentuckyNebraskaOregonWashington
DelawareLouisianaNevadaPennsylvaniaWest Virginia
District of ColumbiaMaineNew HampshireRhode IslandWisconsin
FloridaMarylandNew JerseySouth CarolinaWyoming
Georgia

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Employment Law Updates

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Have employees in more than one state? SUBSCRIBE HERE!

THANK YOU FOR SUBSCRIBING!

We hope you find our newsletters help you better navigate employment and labor law issues.