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Minimum Wage in Texas in 2023

Last Updated on:

05 January 2023
Minimum Wage In Texas

Employees in the United States are entitled to a minimum wage under fair labor law. So, whether a person works in his home state or travels to another state for work, he must pay the minimum wage. By the end of the twentieth century, almost all countries had implemented minimum wage legislation.

The minimum wage differs not only from country to country but also from state to state. Assume that the minimum wage in Florida, Colorado, or California in the United States differs from Texas, even within the same state. It is, therefore, preferable to be aware of a state's minimum wage before deciding to work or reside in one of them.

In this post, we will discuss the minimum wage in Texas, one of the finest minimum wage states in the US. If you are thinking of moving to Texas or seeking work there, you may read the article. This page will provide a more complete and descriptive understanding of Texas's minimum wage.

What is the Standard Minimum Wage in Texas?

Texas's current standard minimum wage in 2023 equals the federal minimum wage of $7.25 an hour. All Texas employees are entitled to a minimum wage corresponding to the nature of their work and their age. The standard minimum wage in Texas is regulated by following the federal minimum wage. The state requires all employers to pay the minimum wage unless an employee is paid for an exempt job, including an excluded business or part-time student work.

Weekly Minimum Wage

An employee is to be paid a minimum wage of $290 a week. An employee will receive the weekly minimum wage if the employee works 40 hours a week with 52 weeks in the year.

Types of Minimum Wage in Texas

In Texas, employers pay workers different minimum wage rates depending on the nature of their work. Here are some of them-

1. Tipped Minimum Wage

The minimum wage for tipped employees in Texas is $2.13 per hour, a stipulation that applies if an employee receives more than $30 per month in gratuity tips. Since monthly tips are considered part of the federal minimum wage, any employee has the right to keep tips. The total amount of tips received in a month and direct wages must equal at least $7.25 per hour.

2. Under 20 Minimum Wage

Federal law requires employers to pay workers under 20 a minimum wage of $4.25 an hour for the first 90 days of training. Also, they will be paid standard minimum wages after completing the training session.

3. Student Minimum Wage

Employers must pay student workers at least 85% of the minimum wage, and high school students under 16 receive at least 75% of the standard minimum wage. Here, employers must require a certificate from the DOL (Department of Labor) to pay this minimum wage to student workers.

Difference Between the Texas Minimum Wage and the Federal Minimum Wage

The federal and state minimum wages in Texas are the same because Texas does not set a minimum wage rate for its employees. This is why the standard minimum wage in Texas is $7.25. Also, employees in exempt or other exceptional jobs may be paid under the minimum salary of the Minimum Wage Act. Still, the rate is the same as the federal minimum wage for workers in exceptional jobs. The federal minimum and standard wage for tipped employees is $2.13 an hour. 

What is the Minimum Wage Act in Texas?

Texas rules and regulations require employers to follow federal minimum wage laws. The Texas minimum wage law entitles employees to a minimum wage, excluding exempt employees, and mandates that employers provide required minimum wage documentation.

Local minimum Wage in Texas

Because Texas does not set a state minimum wage, instead following the federal minimum wage, it also does not allow its municipalities to select a different minimum wage. However, to partially lift the ban, Dallas, Austin, and San Antonio raised the minimum wage for public and private employees under the contract. Dallas raised the minimum wage for contract workers to $10.37 in 2015. San Antonio and Austin raised the minimum wage for their full-time state employees to $15 an hour.

Reasons Behind the Minimum Wage in Texas

There are several reasons why any US state, including Texas, has a mandatory minimum wage. Here’s a look at the following reasons for the minimum wage exists.

  • Providing a standard life of living for Texas Citizens
  • Ensuring safeguards for the well-being and health of workers.
  • Ensuring financial security and stability for employees
  • Protecting workers from exploitative and abusive actions of employers

Rules and Regulations of Minimum Wage in Texas

Since Texas does not set any minimum wage rates for its own, instead of following the federal laws, the regulations regarding minimum wage are also the same. The following are the areas where Texas applies wage regulations. Regarding:

1. State Minimum Wage

Earlier, we mentioned that Texas follows federal laws regarding minimum wage rates. Therefore, the minimum wage rate in Texas is equal to the federal minimum wage of $7.25 per hour for nonexempt workers.

But when paying employees for hourly exception work, federal and state laws exclude them from receiving minimum wage.

Here is the employees' list who are exempt from receiving the minimum wage under the Fair Labor Standards Act-.

  • Administrative employees
  • Executive
  • Professionals
  • Farmers
  • Employees who work in the fish industry
  • Outside salesperson

Moreover, minimum wage exemptions in Texas include the following:

  • Employees of educational or religious organizations
  • Employees of non-profit or charitable institutions.
  • Housekeepers
  • Student workers
  • Convicted prisoners who are employed while incarcerated in Texas local jails
  • Family members who are involved in the family business
  • Entertainers or artists of the theater 

2. Tipped Minimum Wage

If an employee receives more than $20 in tips per month, the employee is considered a tipped employee under US labor regulations.

The minimum wage is set at $2.13 an hour for tipped workers, but tipped employees must make it equal to the standard minimum wage of $7.25 per hour by combining tips and wages. Otherwise, the recruiters will take responsibility.

3. Subminimum Wage

A subminimum wage rate is less than the standard minimum wage that employers can pay employees under certain conditions. Typically patients or clients of the Texas Department of Mental Health and Mental Retardation are paid this minimum wage based on their productivity.

The following list of persons may get the Texas subminimum wage, who are:

  • A mentally disabled person who has a weak productive capacity
  • Therapists or assistants. 
  • Trainees or participants of a sheltered work center.
  • Registered patients or persons of the Texas Department of Mental Health and Mental Retardation 

History of Texas Minimum Wage 

Year

Min Wage

Wage Increase

% Increase

2022

$7.25

$0

0%

2022

$7.25

$0

0%

2021

$7.25

$0

0%

2020

$7.25

$0

0%

2019

$7.25

$0

0%

2018

$7.25

$0

0%

2017

$7.25

$0

0%

2016

$7.25

$0

0%

2015

$7.25

$0

0%

2014

$7.25

$0

0%

2013

$7.25

$0

0%

2012

$7.25

$0

0%

2011

$7.25

$0

0%

2010

$7.25

$0

0%

2009

$7.25

$0.70

10.6%

2008

$6.55

$0

0%

2007

$6.55

$0.70

11.96%

2006

$5.85

$0.70

13.59%

2005

$5.15

$0

0%

2004

$5.15

$0

0%

2003

$5.15

$0

0%

2002

$5.15

$0

53.73%

2001

$3.35

$0

0%

2000

$3.35

$0

0%

1999

$3.35

$0

0%

1998

$3.35

$0

0%

1997

$3.35

$0

0%

1996

$3.35

$0

0%

1995

$3.35

$0

0%

1994

$3.35

$0

0%

1993

$3.35

$0

0%

1992

$3.35

$0

0%

1991

$3.35

$0

0%

FAQ

1. How long has Texas Minimum Wage remained the same? 

While most US states raise their minimum wages for employees almost every year, the Texas minimum wage has remained the same since 2009. The minimum wage was last raised from $6.55 to $7.25, an increase of just $0.70. Texas does not have its minimum wage regulations but instead follows federal minimum laws. And since 2009, the federal minimum wage has remained unchanged, and the Texas state minimum has remained unchanged.

2. Will the Minimum Wage change in 2023?

Texas cities and municipalities have shied away from following rules to set their minimum wages. Although Texas law does not support the rules of making different minimum wages within the state, cities raised the minimum wage significantly to improve workers' living conditions and health. For example, in Dallas and San Antonio, the minimum wage rate for full-time city employees is $15 an hour, nearly double the state or federal minimum wage. The state of Texas has yet to pass a bill aimed at raising the state's minimum wage to $15. Because proposals to raise the minimum wage in Texas are considered at the state and local level, it is still being determined when and how the Texas minimum wage will change.


Josh Evan

Written by:

Josh Evan

Josh Evan is the professional career counselor and career development writer at When Work Works. He loves to see people from this field succeed through initiating the right thing in the right way. He never tells; he shows the way. We appointed John not because of his impressive CV. It was his counseling charisma which stood out of everything. He can implant idea, confidence and productive thoughts into mind almost effortlessly. His pen and mouth both speak for the greater good.


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