Texas Minimum Wage Guide 2024
A BBQ joint in El Paso and a jewelry store in San Antonio have one thing in common. Both businesses must pay their employees the same minimum wage rate as mandated by Texas labor laws. With operational costs rising each year, forcing businesses to change how they manage their employees and finances, we've put together a simple guide on the minimum wage for business owners and workers alike.
Unlike other states, Texas has simple wage requirements. The minimum wage will remain the same if a restaurant or retail business has more or less than 26 employees. While other states may be changing their wage rates as well, Texas is not planning to raise its minimum wage. Keep reading to see tables with the most accurate information as of 2024 and learn more about Texas's minimum wage requirements.
What is the state minimum wage of Texas?
The standard minimum wage in Texas is $7.25 per hour. Unlike other states that raise the minimum wage each year, such as California or Illinois, the minimum wage in Texas will only change if the federal minimum wage laws demand a change.
Here is a table with the 2024 minimum wage of Texas and other states nationwide. The information comes from the Department of Labor's state minimum wage law website.
State | State minimum wage in 2024 | Tipped minimum wage |
Texas | $7.25 | Yes |
California | $16.00 | No |
Washington | $16.28 | No |
Colorado | $14.42 | Yes |
Illinois | $14.00 | Yes |
Missouri | $12.30 | Yes |
Pennsylvania | $7.25 | Yes |
Michigan | $10.33 | Yes |
Does Texas have tipped minimum wage laws?
Yes, Texas does have a tipped minimum wage that businesses must follow. A tipped minimum wage is a lowered hourly wage that matches or surpasses the regular minimum wage after employees receive their tips. In Texas, tipped employees must receive a minimum cash wage of $2.13, and the maximum tip credit is $5.12. The combined minimum wage for tipped employees equals $7.25 per hour. Regarding labor laws for exempt and non-exempt employees, employers should consult Texas' labor laws.
The following table uses information from the Department of Labor website on tipped and regular minimum wages.
Total wage (including tips) | Maximum tip credit | Minimum cash wage | |
Federal wages | $7.25 | $5.12 | $2.13 |
Texas wages | $7.25 | $5.12 | $2.13 |
Is the Texas minimum wage different than the federal minimum wage?
No, the minimum wage in Texas is the same as the federal minimum wage. According to the federal minimum wage website, businesses must pay their employees $7.25 per hour. If the federal law increases the hourly wage, the Texas wage will also increase.
Is there a different minimum wage in Dallas, San Antonio, and Austin?
No, the minimum wage remains a standard $7.25 per hour for every city in Texas. The tipped wage will remain at $2.13 per hour. The permitted maximum tip credit remains at $5.12 per hour as well. As with any business, Texas employers can also choose to pay their employees above the minimum wage rate.
Are you spending too much time calculating tips instead of building your business? Small businesses can use their point-of-sale system to automatically distribute tips to employees. Tip-pooling will save employers time each week while ensuring employees get their fair share at the end of each shift. SpotOn Teamwork gives business owners the right labor management software for employees and employers, payroll automation, and more so your business can focus on operations, not paperwork.
DISCLAIMER: Everything here is just for informational purposes. The links and graphics may not be accurate and we encourage you to do your own research. Also, we can't guarantee results from following our advice. Always consult a professional for your specific situation.