Your Complete Guide to Minimum Wage in Texas (2025 Update)

 When was the last time Texas raised its minimum wage? Despite being the second-largest state in the U.S., Texas has not seen an increase in its minimum wage since 2009. While other states surge ahead with wage increases, Texas remains stagnant—leaving many to wonder, will Texas raise the minimum wage in 2025? In this guide, we will explore everything you need to know about the minimum wage in Texas, the potential for future changes, and how it affects workers across various cities and industries. Whether you’re an employer, employee, or small business owner, this article will provide you with crucial insights into the state’s wage laws. Let’s dive into the details!

Minimum wage in Texas is the lowest hourly pay rate that employers are legally required to offer their workers. Currently, it aligns with the federal minimum wage of $7.25 per hour, set by the Fair Labor Standards Act (FLSA). This rate has not increased since 2009, despite inflation and rising living costs. Employers are required to comply with this rate unless local laws or specific exemptions apply, like for tipped employees or those working in certain industries.

Overview of Texas Minimum Wage Laws

The minimum wage in Texas is governed by both federal and state law, but the state follows the federal minimum wage rate of $7.25 per hour. Texas does not have its own state-specific minimum wage, meaning the federal rate automatically applies unless local laws or exceptions specify otherwise. This rate has remained unchanged since 2009, despite rising inflation and the increasing cost of living.

Key Differences Between Federal and Texas Minimum Wage Rates

The primary difference between the federal minimum wage in Texas and other states is that Texas has not implemented any state-specific wage increases. In contrast, some states have set higher rates to meet local economic conditions. However, Texas employers are required to follow federal wage laws, which include regulations on overtime pay, breaks, and exempt employee categories.

Current Texas Minimum Wage for 2024

The minimum wage in Texas for 2024 remains unchanged at $7.25 per hour. This aligns with the federal minimum wage rate, which has been in place since 2009. Despite the economic pressures caused by inflation, this rate continues to apply across Texas, with no additional state mandates for an increase in the immediate future.

Projected Minimum Wage for 2025

The minimum wage in Texas for 2025 is projected to remain at the federal rate of $7.25, unless there is a significant change in the state legislature or federal policies. Although some local areas may push for changes, statewide minimum wage increases have been slow to materialize due to political and economic factors.

Minimum Wage in Houston, Texas

The minimum wage in Houston is the same as the state’s, currently set at $7.25 per hour. Local businesses and workers in Houston may face the same challenges as other parts of Texas, where the cost of living continues to rise but the wage rate remains the same. However, local discussions continue about raising the minimum wage to reflect the city’s growing economy.

Minimum Wage in Dallas, Texas

Similar to Houston, the minimum wage in Dallas, Texas is also set at $7.25. While Dallas is a major urban center with a high cost of living, the minimum wage has not been raised above the federal standard, despite ongoing debates and calls for a raise from local activists and business leaders.

Minimum Wage in Austin, Texas

Austin is one of the cities where the conversation around minimum wage in Austin, Texas is most prominent. While the city follows the federal rate of $7.25, there have been continuous efforts by local lawmakers and advocates to raise wages, especially given the high cost of living in the area. Despite these efforts, there has been no official increase as of 2024.

Minimum Wage in El Paso, Texas

In El Paso, like other cities in Texas, the minimum wage in El Paso follows the state rate of $7.25. The city’s economy, primarily driven by retail, education, and healthcare, has pushed some employers to consider higher wages, but no official increase has been made.

Minimum Wage in San Antonio, Texas

The minimum wage in San Antonio is also $7.25 per hour, in line with both the state and federal rates. Although local activists have proposed increases to match the rising cost of living, no change has been enacted at the state level.

Minimum Wage in Corpus Christi, Texas

As with other cities in Texas, the minimum wage in Corpus Christi is set to $7.25 per hour. The local government has not passed any legislation to increase the minimum wage beyond this, despite the growing population and economy in the area.

Minimum Wage in Lubbock, Texas

Lubbock follows the same rate as the rest of Texas, with the minimum wage in Lubbock at $7.25 per hour. There have been discussions at the local level regarding the wage rate, but no official increase has been proposed.

Understanding the Federal Minimum Wage

The federal minimum wage in Texas is set at $7.25 per hour, which is applicable across all states unless overridden by local or state laws. This rate applies to most workers, although some exceptions exist based on the nature of the job or the employer’s size.

How the Federal Minimum Wage Affects Texas Workers

Since Texas has no state-specific minimum wage, the federal minimum wage directly affects all workers in the state. Employers are obligated to adhere to this rate unless exemptions, like those for tipped employees or specific industries, apply. Texas has no plans to change this rate, so it remains the baseline for most workers in the state.

Minimum Wage for Servers in Texas

Servers in Texas are often paid a tipped minimum wage, which is lower than the standard rate. This means they earn $2.13 per hour in cash wages, but tips make up the difference to ensure that they earn at least $7.25 per hour. The tipping system can sometimes lead to unpredictable earnings, depending on the restaurant or service sector.

Minimum Wage for Waitresses in Texas

Like servers, waitresses in Texas also earn $2.13 per hour in base pay, with the expectation that tips will bring their total earnings up to at least $7.25 per hour. While some restaurants pay higher wages, the law allows employers to use the tips to make up the difference in wages.

Minimum Wage for Minors in Texas

The minimum wage in Texas for minors can vary, especially for those under 18. Minors working in part-time jobs often receive the same minimum wage rate, but some employers may offer reduced wages or specific exemptions based on job type and work hours.

Minimum Wage for Salaried Employees in Texas

Salaried employees in Texas are generally exempt from the minimum wage in Texas laws if their salary exceeds a certain threshold. This means that they may not be entitled to overtime or hourly wage increases, but their pay is considered sufficient for their role.

Key Milestones in Texas Minimum Wage Legislation

Texas has a long history with minimum wage laws, with significant changes occurring during the 1960s and later in 2009, when the state adopted the federal rate of $7.25 per hour. There have been several discussions about raising the wage, but no substantial changes have been made at the state level in recent years.

How Texas’ Minimum Wage Has Evolved Over Time

Since adopting the federal minimum wage, Texas minimum wage laws have remained relatively unchanged. Efforts to raise the wage have failed to gain traction, even as neighboring states and cities continue to push for increases based on local economic conditions.

Will Texas Raise the Minimum Wage in 2024?

There are no plans to raise the minimum wage in Texas in 2024. However, given national trends and local pressures in cities like Austin and Houston, the conversation about a potential raise will continue to shape the political landscape.

Is Minimum Wage Going Up in Texas?

The minimum wage in Texas is not expected to increase in the near future unless legislative actions are taken to address the growing disparity between the cost of living and wages.

Projected Changes to Minimum Wage Laws in Texas for 2025 and Beyond

Looking ahead, minimum wage in Texas may change if there is enough support for wage hikes at the local or state level. Proposals for higher wages are often discussed in major cities, but state legislation remains a significant barrier to implementing widespread changes.

Who Is Exempt from Texas Minimum Wage Laws?

Certain categories of workers are exempt from Texas minimum wage laws, such as agricultural workers, employees in religious institutions, and some minors. These exemptions are designed to accommodate specific industries and workforce demographics.

Overtime Pay Regulations in Texas

Texas adheres to federal overtime pay regulations, requiring employers to pay time-and-a-half for any hours worked over 40 per week for non-exempt employees.

Can Employers Pay Less Than the Minimum Wage in Texas?

Employers can pay less than the minimum wage in Texas in certain situations, such as for trainees or disabled workers under specific conditions outlined by state and federal law.

Practical Steps for Texas Employers

Employers in Texas can stay compliant by ensuring they pay at least the minimum wage to non-exempt workers, keeping accurate payroll records, and being aware of exemptions that may apply to specific workers or industries.

Importance of Accurate Payroll Records

Accurate payroll records are vital for employers to ensure they meet legal obligations. This includes tracking hours worked, overtime, and ensuring that wages are in line with the minimum wage in Texas.

Tools for Tracking Minimum Wage Compliance

There are several tools available that help employers track minimum wage compliance. These tools automate payroll processes, calculate hours worked, and flag potential discrepancies to ensure employers meet wage laws.

How Software Solutions Simplify Payroll Management

Payroll software can simplify compliance with minimum wage regulations by automatically adjusting to changing laws, tracking hours, and generating payroll reports. This reduces the risk of errors and ensures that employees are paid correctly.

The minimum wage in Texas has remained stagnant for years, with no immediate plans to increase it in 2025. However, local advocacy and federal trends may lead to changes in the future. For now, Texas workers are subject to the federal minimum wage, and employers must comply with both state and federal regulations. Stay informed and ensure that your business remains compliant to avoid legal issues.