EMPLOYMENT LAW NEWS

Texas Minimum Wage

By GovDocs
Updated August 2024

Texas Minimum Wage

While Texas minimum wage follows the federal rate, like many of the other states in the area, it is interesting to see the interest it garners from people who continually monitor its rate.

Texas minimum wage…

Why does it garner so much interest when the rate hasn’t changed since 2009?

The Lone Star State, like about 20 other states in the U.S., still follows the federal minimum wage. As of August 2024, the Texas minimum wage rates are:

  • $7.25
  • $2.13 (tipped employees)

Still, it is worth exploring the potential reasons why so many people are curious about minimum wage in Texas.

Minimum Wage Management. Simplified.

Texas Minimum Wage in 2024

There are likely several reasons Texas minimum wage generates so much attention. Let’s examine a few possibilities.

First, the state boasts the mosthome to the most minimum wage employees in the country. Hundreds of thousands of Texans earn minimum wage, which certainly contributes to the number of people who wonder about the rate.

It is also worth noting that Texas is the second-largest economy in the U.S. behind California, and it is among the leaders of states with the most Fortune 500 companies.

However, Texas lawmakers have introduced new minimum wage legislation in the past. A bill in 2021 gained some momentum in the legislature but never went anywhere. And it appears there is no clear path toward a new minimum wage bill in Texas anytime soon.

How Many States Have a $15 Minimum Wage?

Minimum Wage in Austin, Dallas, Houston, and San Antonio

But for employers, perhaps the reason for the robust interest in Texas minimum wage could be the relatively recent happenings with paid sick leave laws in three major cities.

A few years ago, Texas’s four largest cities – Austin, Dallas, Houston, and San Antonio – passed paid sick leave laws that were all similar in nature. All three were ultimately struck down by the courts, however.

Officials decided the ordinances ran afoul of the Texas minimum wage law, deciding these regulations required employers to pay a higher rate than the state minimum wage and conflicted with the Texas Constitution.

This, of course, had sweeping ramifications for employers and set the course for Texas over the past few years. While paid leave laws continue to grow in jurisdictions across the U.S., local legislators in Texas appear to be hamstrung by the courts in terms of new laws.

Paid Leave Management. Simplified.

Meanwhile, other provisions of the Texas minimum wage law include:

  • The Texas Minimum Wage Act does not prohibit employees from bargaining collectively with their employers for a higher wage
  • With specified restrictions, employers may count tips and the value of meals and lodging toward minimum wage
  • An employer does not need to pay an employee who lives on the business premises for on-call time in addition to assigned working hours
  • Under certain conditions, an employer may pay a subminimum wage to an employee who is a patient or client of the Texas Department of Mental Health and Mental Retardation, or to other individuals due to age or to productivity impairments

Also, simply for clarity, there are no cities in Texas with their own minimum wage laws.

2024 State Minimum Wage Rates

Minimum Wage in the U.S.

Despite the inactivity regarding Texas minimum wage, the tide of new laws across the U.S. continues unabated.

With the federal minimum wage unchanged in more than a decade, more jurisdictions have passed these types of laws over the past several years.

But the latest development is a shift from scheduled rates, which employers can more easily plan for, to indexed rates, which are becoming more popular each year. Additionally, jurisdictions sometimes announce updated rates only weeks before their effective date, creating additional challenges for employers that operate across the U.S.

Also, there has also been a rise of industry-specific rates, especially in places like California (notably for hotel and healthcare employees), which adds another layer to the employment law compliance puzzle.

Minimum Wage Compliance Resources

Finally, as mentioned above, there are several states that still go by the federal minimum wage. As of August 2024, they are:

  • Alabama
  • Georgia
  • Iowa
  • Idaho
  • Indiana
  • Kansas
  • Kentucky
  • Louisiana
  • Mississippi
  • New Hampshire
  • North Carolina
  • North Dakota
  • Oklahoma
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Texas
  • Utah
  • Wisconsin
  • Wyoming

The Fight for a $20 Minimum Wage

Conclusion

While the Texas minimum wage follows the federal rate, it sees an an unusually high interest from people who continually monitor its rate, probably due to the number of minimum wage employees in Texas, as well as both its population and economic strength.

This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.

GovDocs Minimum Wage
gov-docs-paid-leave-laws-management-simplified-us-map-call-to-action

Keep Informed
with GovDocs Employment Law News

Employment Law Compliance LinkedIn Group

Who is GovDocs?

GovDocs simplifies employment law compliance for large employers in the U.S. and Canada. The GovDocs software platform integrates three solutions in one convenient place to help you master the employment laws impacting your business. Whether you manage a labor law posters, minimum wage or paid leave program, our products cut through research time, provide proactive insights into the everchanging landscape of employment laws and reduce the risk of noncompliance. The company is headquartered in Eagan, Minn.

Have fewer than 30 locations? 

The GovDocs Poster Store simplifies posting compliance for employers with less than 30 locations across all industries, offering a variety of posting products to meet your labor law compliance needs.