A quick guide for employees to understand Texas State Minimum Wage in 2021
What is the Minimum Wage in Texas 2021?
Texas states minimum wage for 2021 is $7.25 / hour. This is the same as the current Federal Minimum Wage rate. The weekly minimum wage in Texas comes up-to $290 / 40-hours a week. The minimum wage in Texas is applied to most of the employees, however with limited exemptions like student workers, tipped employees and other exempt occupations.
Texas state doesn’t have a state specific minimum wage policy hence it adopts and refers to the Federal Minimum Wage rate. The last change in Texas minimum wage was done in 2008, when it was raised from $6.55 per hour to $7.25 per hour. Like all the other states, the minimum wage rate in Texas as well is linked to the Consumer Price Index, which is intended to raise the rate along with the inflation.
Under the Federal Minimum Wage policy, Texas employers should not pay its employees under $7.25 per hour unless you or your occupation are specifically exempted from the minimum wage under the state or federal law.
Texas Minimum Wage and Labor Law Posters
According to the Texas Labor Laws and Fair Labor Standards Act (FLSA), all the employers in Texas are required to display an approved Texas Minimum wage poster and other Texas and labor law posters, to ensure that all the employees in Texas are aware of Texas and Federal labor laws and overtime regulations. For the employers who fail to display the Texas Labor Law posters in the workplace can result in severe fines.
Texas Overtime Minimum Wage
According to the Texas state overtime minimum wage rule, all the employees who work for over 40 hours in a week are entitled for a minimum wage of at least 1.5 times the regular applicable minimum wage.
Under Fair Labor Standards Act, all the employees working in Texas are guaranteed adequate overtime compensation for all the qualifying overtime hours worked. If any of the employers doesn’t pay adequate overtime wages, the employee can file an unpaid overtime claim with the Texas Department of Labor.
Texas Minimum Wage Exemptions
Under the Federal Fair Labor Standards Act, special minimum wage rates are applicable to certain types of workers, which is in addition to any other minimum wage exceptions made by Texas Labor Laws. If you for into any of the following categories, you may be paid under the Texas minimum wage rule:
Under 20 Minimum Wage: Under this law, the employer can pay its employee who is under the age of 20, working in Texas, a training wage of $4.25 per hour for the first 90 days of employment.
Student Minimum Wage Rule: College students of full-time high school students who work part time may be paid $6.16 per hour for upto 20 hours of work per week.
Tipped Minimum Wage Rule: Under this rule, all the employees working in the state of Texas who earn a certain amount of tips every month may be paid lower minimum wage, but they must earn a minimum $7.25 per hour including their tips.
Frequently Asked Questions on Texas Minimum Wage and Labor Laws:
What is Texas Payday Law?
The Texas Payday Law states that the employer must pay its employees in full and on time on regular scheduled paydays. This law has very strict guidelines for wage payments.
What is the minimum wage in Texas?
The current minimum wage in Texas is $7.25 per hour, which is the minimum rate a non-exempt employee in the state of Texas gets paid legally by the hour. However, for certain exempt employees, like student workers, employees under the age of 20 and certain tipped employees, a special minimum wage rate may be applicable.
What is Texas under 18 minimum wage?
Under the Texas under 18 minimum wage act, all the employers in Texas are entitled to pay 18 year old and minors the youth minimum wage of $4.25 per hour for the first 90 days of their employment.
What is the Texas Minimum Wage in 2021?
The Texas Minimum Wage for all the non-exempt employees working in the state of Texas for the year 2021 is $7.25 per hour.
In Texas, how much will I earn working a minimum wage job?
A full time non exempt employee working in the state of Texas for 8 hours a day, 40 hours a week and 52 weeks a year will earn a minimum of $58.00 per day, $290.00 per week and $15,080.00 per year. However, for your consideration, the national poverty line for a family of 2 is $16,020.00 per year.
What is the overtime minimum wage in Texas?
Texas overtime minimum wage is $10.88 per hour, which is one and half times the regular Texas minimum wage of $7.25 per hour.