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Texas State Minimum Wage 2023

A quick guide for employees to understand Texas State Minimum Wage in 2023

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What Is the Minimum Wage in Texas 2023?

Texas states minimum wage for 2023 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 $0.70, that is, 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.

Managing labor compliance at large organizations in Texas may lead to legal issues. Learn how organizations are leveraging Replicon’s solutions with built-in compliance modules to solve Texas minimum wage needs.

Under the Federal Minimum Wage policy, Texas employers should not pay their employees under $7.25 per hour unless you or your occupation is specifically exempted from the minimum wage under the state or federal law. Although, the Texas minimum wage act does not prohibit the employees of Texas from negotiating with their employers for higher remuneration.

Besides, certain NPO and educational organizations in Texas can send an application to the department of labor to pay their employees less than the stipulated minimum wage.

Are There Any Plans to Increase the Minimum Wage in Texas in 2023?

Many states have witnessed increases in the minimum wage according to the inflation rate. However, no increase has been seen in Texas after 2009. Currently, there are no bills passed to amend the minimum wage rate in texas; however, some organizations are striving to enhance this minimum wage rate. For instance, in San Antonio, the security services federal credit union raised the minimum wage of around 400 employees from $15 to $20 per hour effective from September 2021, which is double the Texas state and federal minimum wage.

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 to ensure that all the employees in Texas understand Texas and Federal labor laws and overtime regulations appropriately. Employees who fail to present the Texas Labor Law posters in the workplace can face severe fines.

Texas minimum wage 2020

Texas Overtime Minimum Wage 2023

According to the Texas state overtime minimum wage rule, all employees who work for over 40 hours in a week are entitled to 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 employer refuse to pay the right overtime wages, in such scenarios, an 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:

  1. 1. 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.
  2. 2. Student Minimum Wage Rule: College students of full-time high school students who work part-time may be paid $6.16 per hour for up to 20 hours of work per week.
  3. 3. 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 a lower minimum wage, Tipped employees earn $20 or more in tips per month instead of $30 per month as defined in the FLSA. However, they must be remunerated at least $7.25 per hour, including their tip, unless their occupation is specifically exempted from the minimum wage under federal law.

To know about state-by-state analysis of on-call work and shift work rules click here!

Frequently Asked Questions on Texas Minimum Wage and Labor Laws:

1. What is Texas Payday Law?

The Texas Payday Law states that the employer must pay its employees in full and on time on regularly scheduled paydays. This law has very strict guidelines for wage payments.

2. 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.

3. What is Texas under 18 minimum wage?

Under Texas under 18 minimum wage act, all 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.

4. 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.

5. 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.

6. 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.

Disclaimer: The material provided above is for informational purposes only and is subject to change. We endeavor to keep all material up-to-date and correct but make no representations about the information's completeness, accuracy, or reliability. Laws vary by jurisdiction and are subject to change and interpretation based on individual factors that may differ between organizations. The material is not meant to constitute legal advice and we suggest you seek the advice of legal counsel in connection with any of the information presented.
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