Texas minimum wage tips. 25 per hour.

Texas minimum wage tips. 25 per hour, which can include a combination of direct wages and tips. It is a common practice for employers to use tips to meet minimum wage and other pay requirements. Sep 8, 2023 · Discover the minimum wage requirements for tipped employees by state, such as waiters and waitress. It does not include additional compensation like tips or other benefits. S. Jan 13, 2025 · Do your employees earn tips? You may be able to pay them the federal or state tipped minimum wage. 13 per hour is because of the employer’s applicable tip credit. Employers can pay tipped employees a base wage of $2. Most workers earn less than those in many other states with higher minimum wages. Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7. Hence, the minimum wage rate stands at $7. However, many employers fail to comply with these regulations, leading to wage theft or other unlawful practices. If an employee’s tips do not make up the difference, the employer must Lawyers for Tipped Employees and Service Workers Many employees in Texas earn tips by waiting tables, mixing drinks, or parking cars. Employers are allowed to pay a direct cash wage of $2. 052. 25/hour. Sep 10, 2025 · The distinction between Texas minimum wage and tipped minimum wage creates specific pay rules for tipped workers. The reason why some tipped employees, especially here in Texas, receive $2. Does your employer owe you unpaid wages or overtime? Or, maybe you need information on the breaks you’re entitled to, overtime rules, or your right to tips. 25 per hour for all nonexempt employees. – Unlike many other states, Texas does not have a provision for adjusting its minimum wage based on cost of living or inflation. Feb 29, 2024 · In Texas, there is a history of minimal enforcement of minimum wage laws for servers. *Note: State laws and regulations for tipped minimum wages have been checked and updated for 2025. However, according to the Texas Minimum Wage Act, employees are allowed to bargain with their employers to get a higher per-hour rate. Castellanos on January 8, 2021 Posted in Department of Labor, FLSA violations, Minimum Wage, Tip pool, Tipped Employees, Tips Apr 21, 2025 · Texas MINIMUM WAGES The state of Texas has been following the federal minimum wage rate since 2009. Mar 30, 2023 · In this tipped minimum wage by state guide for 2025, we’ll cover: Basic information regarding wages for tipped employees in the US, Current minimum tipped wages for states in the US, and Frequently asked questions about tipped minimum wage by state. In Texas, tipped employees are subject to the same federal minimum wage laws as non-tipped employees. This Allowable Deductions Under the FLSA Under the Fair Labor Standards Act, allowable deductions from minimum wage include: Meals, Lodging, and Other Facilities Tip Credits Voluntary Wage Assignments Loans and Wage Advances Vacation Pay Advances Uniforms and Uniform Cleaning Costs Employee-Owed Payroll Taxes Union Dues Court-Ordered Garnishments or Statutorily-Required Wage Attachments Cash The FLSA sets minimum wage levels (minimum wage of $7. FRED: Download, graph, and track economic data. That said, your business might need to pay more depending on your location or industry, especially if you want to attract top-notch talent. As of 2021, the federal minimum wage for tipped employees is $2. This Confused about the minimum wage in Texas? We break down the laws, tipped wages, and what you really need to know to run your small business right. Ultimate Texas labor law guide; learn about Texas minimum wage, overtime, break, leave, hiring, termination, and miscellaneous labor laws. While some states are proactive in increasing wages to keep pace with inflation, Texas will remain at the federal minimum wage of $7. The minimum wage applies to most employees in Texas, with limited exceptions including tipped employees, some student workers, and other exempt occupations. Jul 31, 2025 · Georgia has a state minimum wage law, but it does not apply to tipped employees. Unfortunately, some employers do not follow the rules for tipped employees. With specified restrictions, employers may count tips and the value of meals and lodging toward minimum wage. Becoming effective in 2009, the Texas Minimum Wage Act was created to outline the salary rights given to working individuals in the state of Texas. 55 to $7. 25/hour minimum wage. This is the minimum per hour a Texas server must pay and a Texas employer must pay its servers. This article explains the current minimum wage requirements in Texas, covers Jul 6, 2025 · The minimum wage in Texas remains $7. Texas is one of the few states that has avoided increases in the State's minimum wage. (b) In this section, “tipped employee” means an employee engaged in an occupation in which the employee customarily and regularly receives more than $20 a month Jan 5, 2025 · Browse this comprehensive guide to the Texas minimum wage in 2025, including exemptions, projections, and other information for small business owners. The state follows the federal minimum wage for servers, which allows for a lower hourly wage for tipped employees as long as their total earnings (including tips) meet or exceed the standard minimum wage. The current minimum wage in They are subject to minimum wage requirements, overtime pay and several unique wage rules. Get expert legal help today. Sep 5, 2025 · Everything you need to know about the Texas minimum wage to ensure compliance: requirements, rates, history, enforcement and exemptions In 2025 the tipped minimum wage rate is $2. Effective July 24, 2009, the federal minimum wage is $7. (And I bet way lower than your current states minimum wage) My husband is a server at an Austin chain restaurant that's middle of the road as far as menu pricing and averages $20 an hour with tips. Aug 19, 2025 · Texas Minimum-Wage and Tip-Credit Rules: Key Takeaways Texas minimum wage aligns with the federal rate of $7. Jul 14, 2025 · Learn how tipped minimum wage laws work in 2025 — including federal rules, tip credit examples, and a full state-by-state breakdown. " (See Cumbie v. Many employees do not fully understand their rights, leading to unpaid wages and unfair treatment. The current federal minimum wage is $7. Jul 21, 2025 · Navigate Texas restaurant minimum wage regulations with ease. 25 an hour for each hour worked in a single work week, or your employer must make up the difference. Understanding these rules is essential for employers and employees to ensure fair wage practices and compliance with labor laws. In Texas, tipped employees must receive a minimum wage of $7. In Texas, the tipped minimum wage is 2. 052), so long as their workers’ reported tips ensure they meet or Texas Tipped Minimum Wage In Texas, your employer may pay you a minimum wage of $2. Dec 23, 2024 · The minimum wage rate is expected to change in 2025 in the following states: Alaska Arizona California Colorado Connecticut Delaware District of Columbia Florida Illinois Maine Michigan Minnesota Missouri Montana… Jan 8, 2025 · Understanding Texas minimum wage laws and their broader impact is crucial for both employees and employers navigating the Lone Star State’s labor market. 13 per hour, plus a tip credit of up to $5. 25 $2. All cities in Texas follow the same minimum wage rate and have no independent Jul 31, 2025 · Alabama No state minimum wage law. 13, and the maximum tip credit is $5. 25 per hour when combining tips and wages. This is the same as the current Federal Minimum Wage rate. Mar 13, 2025 · Explore the minimum wage for tipped employees by state in 2025 along with federal guidelines and key regulations for restaurant workers and tipped staff. 13 per hour and apply a tip credit of up to $5. 13 per hour, but employers must ensure employees' tips make up the difference to $7. To see if you are making minimum wage, add your wages for a single work week to your tips for the same period. † The Texas minimum wage was last changed in 2008, when it was raised $0. If you believe your employer has mishandled your tips, understanding your rights is critical. 13 per hour, provided that their tips bring their total earnings to at least $7. Jan 1, 2018 · Learn more about Texas minimum wage: the value compared to other states, upcoming increases, tipped minimum wage values and detailed city level data. If you don’t earn enough in tips to bring your compensation to the full minimum wage, your employer must make up the difference. This includes stealing tips, prohibited tip-sharing, or paying base pay of $3. Under the act, if an employee works for tips, under certain provisions, the employer may count the earnings from tips towards a minimum wage. 25 per hour, unchanged since 2009. The page provides information about employer and employee rights, duties, and remedies under the Texas Minimum Wage Law. Texas follows the federal minimum wage guidelines, however, five major cities in the state start city employees at nearly double the current wage. Nov 25, 2024 · In Texas, the baseline tipped minimum wage is $2. This Fact Sheet provides general information concerning the application of the FLSA to tipped employees, whether an employer pays the full minimum wage or takes a Texas Minimum Wage for Tipped Employees The minimum wage calculation slightly differs in the restaurant industry, where tipping is a standard practice. Tipped Wages In Texas, the minimum cash wage for tipped employees is $2. . 25 per hour, the employer In Texas, tipped workers who regularly receive more than $20 a month in tips can be paid a lower direct minimum wage rate of $5. Woody Woo, Inc. Sep 2, 2025 · Clarify the minimum wage in Houston, Texas. This minimum wage by state chart tracks minimum wage requirements for federal and state laws and legislation that can change annually for any state. While it may seem less complex, compliance remains crucial for restaurant owners. 12 per hour, bringing the total paid to tipped employees to $7. 12 to meet the federal minimum wage. ) The 4th Circuit recently agreed with the 9th Circuit on that issue Jun 2, 2025 · Local minimum wage increases Numerous cities and counties are also increasing their minimum wage effective July 1, 2025. The calculator will automatically assume that the employer takes the maximum possible tip credit, and calculate tip and cash wage earnings accordingly. The state minimum wage rates may be increased annually based upon changes in the cost of living index, which would in turn increase the minimum cash wage for tipped employees. 12. Feb 29, 2024 · Minimum wage requirements: Employers in Texas are required to ensure that tipped employees receive at least the minimum wage, including tips received, through a combination of direct wages and tip income. , still follows the federal minimum wage. Subminimum wage is allowed for roles that earn tips, like servers and bartenders. 2024 State Minimum and Tipped Wages Rates The federal Fair Labor Standards Act (FLSA) establishes minimum wage and overtime requirements for virtually all employers. Reply reply bpowell4939 • That's pretty terrible for Austin tbh Reply (a) In determining the wage of a tipped employee, the amount paid the employee by the employer is the amount described as paid to a tipped employee under Section 3 (m), Fair Labor Standards Act of 1938 (29 U. 1. Learn about the minimum wage in Texas 2025, including current rates, laws, and how it impacts workers. Stay informed on the latest wage news and changes. 13/hr. Texas has a large number of service industry employees so this can be a substantial issue. 25 per hour applies to all workers in Texas. Feb 9, 2024 · Discover the latest Texas State Minimum Wage 2024. In most states, including Texas, the tipped minimum wage is $2. 3d 577, 582 (9th Cir. That’s why employers must still carefully track tip credits, overtime, and employee classifications. You can only use tip credits in Texas if: The employee earns a minimum of $30 a month in tips. 12 in earned tips against an employee's wages per hour, which can result in a cash wage as low as $2. , 596 F. Texas allows employers to credit up to $5. Jul 12, 2025 · What Are Tipped Employees? Working in a job where tips are a significant part of your earnings involves a unique set of pay rules governed by the U. 12 per hour (as of 2020) before tips. Tipped Employees Texas follows federal guidelines for tipped employees, allowing employers to pay a lower base wage if workers earn enough in tips to meet the minimum wage. 12 per hour (Texas Labor Code §62. Texas’s minimum wage for tipped employees, such as waitstaff and bartenders, is $2. Jul 12, 2024 · Texas minimum wage laws in 2024: rates, exemptions, compliance, enforcement, and future trends for fair and legal workplace practices. To learn more, visit the TWC's Texas Minimum Wage Law page. 12, totaling at least $7. 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. For a role-specific overview, see server minimum wage guidance. 25 an hour. 15) an hour. The Texas minimum wage for 2025 is set at $7. Some cities like Austin pay higher wages only to city employees. Dec 5, 2024 · Texas Minimum Wage Definition: The Texas minimum wage is the minimum hourly wage that employers in Texas are legally required to pay their employees. By following these guidelines and Dec 7, 2024 · Texas follows the federal minimum wage, meaning employers must pay a minimum of $7. TX Labor Code 62. 70 from $6. Jul 1, 2020 · The state minimum wage rates may be increased annually based upon changes in the cost of living index, which would in turn increase the minimum cash wage for tipped employees. Sep 25, 2025 · Employers who meet certain criteria are permitted to take a partial credit against minimum wage obligations for tipped employees. 13 tipped minimum wage. – The last time Texas had a state minimum wage was in 1997, when it matched the federal minimum wage of $5. In states that allow a tip credit, a certain amount of received tips per hour may be credited against the minimum wage by an employer, although the tipped employee must receive at least the minimum wage (with combined cash Jul 25, 2025 · Here's what you need to know about federal and Texas legal protections for employees who receive tips. 13/hour) applies in Texas, with the total of wages plus tips meeting at least $7. Instead, the federal minimum wage of $7. Currently, this is set at the federal minimum wage level, which is subject to change by federal legislation. Jul 6, 2023 · The minimum cash wage for servers in Texas is the same as the tipped minimum wage in Texas, which is $2. Learn federal and state rates here. It also doesn’t have a separate minimum wage. Sometimes misconceptions regarding the applicable minimum wage of tipped employees looms but this blog aims to resolve any confusion. Aug 14, 2025 · Texas Overtime Rules for Tipped Employees: Conclusion Understanding and applying Texas overtime rules for tipped employees ensures compliance with both federal and state labor laws. 25 per hour in 2025, unchanged since 2009. Key provisions: Tipped minimum wage is $2. Florida is set to increase its minimum wage rate in September. Federal vs. 13 (tipped employees) Still, it is worth exploring the potential reasons why so many people are curious about minimum wage in Texas Texas’s current minimum wage for tipped employees is $2. State Law: Texas follows the federal minimum wage, which supersedes unless the state raises it. If you think your business or employee isn?t covered by the FLSA, we recommend consulting an employment law attorney. The tipped wage is the base wage for employees who earn tips (such as servers and bartenders). Employers in these states must pay employees covered by the Federal Fair Labor Standards Act at least the federal minimum wage. May 16, 2025 · What is the minimum wage for a waitress in Texas? Learn how tip credits work, your legal rights as a tipped worker, and how The Lange Firm can help if you’re underpaid or mistreated. 13 plus a tip credit up to $5. The current minimum wage in Jan 8, 2021 · Department of Labor Issues New Regulations for Tipped Employees By Jairo N. In this section, "tipped employee" means an employee engaged in an occupation in which the employee customarily and regularly receives more The tipped minimum wage in Texas is $2. Look at the current increase from the previous year & gain insights into historical wages. Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA) Under the FLSA, a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips. According to federal law, employers can pay tipped employees a lower minimum wage as long as their tips bring their total earnings up to at least the regular minimum wage. Jun 9, 2025 · How Texas’ minimum wage works in 2025 Since Texas mirrors the federal rate, you’re legally allowed to pay $7. 3 days ago · Current minimum wage information for Texas with latest regulations and requirements. Dec 27, 2024 · In sum, tip credit is real. C. What Are My Rights to Tips in Texas? Although tips belong to employees, your employer can pay you a lower minimum wage if you receive tips. 62. Department of Labor (DOL) under the Fair Labor Standards Act (FLSA). Sep 1, 2023 · SEC. May 16, 2025 · How to Determine Hourly Wage from Salary How to Factor in Overtime Pay Commission, Tips, and Bonuses: How They Affect Hourly Wages Minimum Wage in Texas and the Federal Standard Deductions and Net Hourly Pay Common Wage Calculation Errors in Texas Legal Rights if You Are Underpaid How The Lange Firm Can Help Final Thoughts Related Blogs for Texas Tipped Minimum Wage In Texas, your employer may pay you a minimum wage of $2. As of August 2024, the Texas minimum wage rates are: $7. Jan 10, 2023 · Your tips and wages must add up to at least $7. Texas wage and hour laws govern nearly every aspect of the employee/employer relationship in Texas, establishing requirements for minimum wage, overtime, breaks and more. For tipped employees in Texas, the minimum cash wage is $2. Jan 12, 2025 · A tipped minimum wage is a lowered hourly wage that matches or surpasses the regular minimum wage after employees receive their tips. "The FLSA does not restrict tip pooling when no tip credit is taken. Employers can pay tipped hospitality workers a cash wage of $2. 25 per hour. Aug 20, 2023 · Like many other restaurants, Texas Roadhouse operates under the tipped minimum wage system. 20 Summary Location: Texas, USA Texas follows federal tip laws with no additional state regulations. Tipped employees are guaranteed to earn the minimum wage when tips are included. The FLSA generally allows employers to take a tip credit and Jan 28, 2025 · In Texas, tipped employees must receive at least $7. Compare state laws, tipped wages, and upcoming increases to stay compliant. 50 (or 7. Learn everything about the minimum wage in Texas, including rates for restaurant and hospitality workers, and how to stay compliant with local laws. 25 unless new legislation is introduced. 25 an hour to most of your employees. 2010). 25. Jun 17, 2025 · View the latest 2025 minimum wage rates for all U. Employers can claim a tip credit of up to $5. In Texas, tipped employees must receive a minimum cash wage of $2. See full list on minimum-wage. Texas adopts the federal minimum wage rate of $7. 25 per hour for non-tipped work. In the Ninth Circuit, the tip pooling rules apply only when a tipped employee is paid a cash wage of less than the federal minimum wage. 13 per hour, which is the same as the federal tipped minimum wage. In this section, "tipped employee" means an employee engaged in an occupation in which the employee customarily and regularly receives more What is the minimum wage for tipped employees in Texas? As of 2025, the federal tipped minimum wage ($2. Learn about hourly rates, tipped employee rules, and compliance tips in our comprehensive guide. 13 per hour, with the understanding that tips must bring the total hourly compensation to at least $7. 13 per hour, with $5. Some local jurisdictions adjust their minimum wages annually for inflation each July, but they haven't announced their 2025 rates yet. Texas employment lawyers help clients in Texas with tipping issues under federal and Texas employment laws. Mar 18, 2025 · Understanding minimum wage laws in Texas is essential for all workers. 15 per hour. Labor Costs: Managing wages while controlling costs is vital. But what exactly is the current minimum wage in the Lone Star State, and how does it all work? Let's take a detailed look. 25 per hour, but there are exemptions and special situations that affect how much workers get paid. The law defines a “ tipped employee ” as one that consistently receives tips of $20 or more a month while employed in an occupation, according to the TX Labor Code 62. 13 an hour. In some states, employers can claim a tip credit for these workers. 25 per hour (the Texas minimum wage is the same); a minimum cash wage of $2. Sep 18, 2025 · Discover the minimum wage in Texas for 2025 and learn about current rates, exemptions, tipped wages and compliance steps. org May 17, 2024 · Tip credits allow you as an employer to show that you are providing a minimum wage by combining hourly pay and tips. 13. This follows federal Fair Labor Standards Act (FLSA) guidelines. Employers should ensure compliance with new rates to avoid legal issues In Texas, the minimum wage for tipped employees is $2. 13 per hour. How Tip Credit Works If a tipped employee’s earnings (tips plus the $2. Oct 9, 2024 · Conclusion As 2025 approaches, the disparity in minimum wage laws across the United States highlights the varied approaches states take to address wage issues. Federal law guarantees $7. Texas' state minimum wage rate is $7. TIPPED EMPLOYEES. Jun 30, 2025 · Texas state minimum wage compliance just got easier with Mosey's insights and expert tips on wage rates, exemptions, tip credits, employer obligations and more! (a) In determining the wage of a tipped employee, the amount paid the employee by the employer is the amount described as paid to a tipped employee under Section 3 (m), Fair Labor Standards Act of 1938 (29 U. Specifying the Texas Minimum Wage Rate Texas currently follows the federal minimum wage, which is $7. If you’re in a city like Austin or Dallas, where living costs are a bit steeper and job opportunities Dec 20, 2024 · Whitepaper: Complete Guide to Wage & Hour Compliance State Minimum Wage Rates in 2025 Effective January 1, more than 20 states raised their minimum wage rates in response to inflation or according to previously enacted legislation. The minimum wage is the same as federal, which is 7. Tip Minimum Wage Texas’ minimum wage for tipped employees is $2. Tip pooling is allowed only among employees who regularly receive tips; managers and non-tipped staff are excluded. The Current Texas Minimum Wage: A Closer Look As we've established, understanding Texas minimum wage laws is critical for both employers and employees. The following table includes many of the announced local rate changes for 2025 as well as some other local jurisdictions that typically make Learn about the minimum wage for Houston Texas, wage laws for tipped workers, overtime requirements, and how to address wage theft. 13 an hour, as long as you earn enough in tips to bring your total hourly pay up to the full minimum wage, $7. Labor laws, tip credits and more Sep 24, 2019 · Release Table for 2025, Release Tables: Federal and State Minimum Wage Rates, Annual. 2. Jan 10, 2024 · This rate is consistent with the federal minimum wage, as Texas adheres to this standard for most employees, including tipped employees, some student workers, and other exempt occupations, with certain conditions allowing for tips and the value of meals and lodging to count toward the minimum wage. Understand how federal, state, and local laws determine the rate and its common exceptions. 13 hourly wage) fall short of the standard $7. Section 203(m)). You can find out more about Texas minimum wage, tip rules, overtime standards, and other wage and hour issues at the Texas Workforce Commission. Tipped employees, such as waitresses and bartenders, may sometimes be paid a cash wage that is lower than the prevailing minimum wage through a system known as a tip credit. The combined pay and tip credits add up to at least the minimum hourly wage. Tipped Wage: $2. Neighboring states such as Oklahoma, Arkansas and Louisiana also have a $2. Jul 7, 2025 · The minimum wage in big towns in Texas The state doesn’t raise the minimum wage, but some towns have made changes for workers and contractors who work for the city. Employers must accurately calculate overtime wages using the full minimum wage rate, respect tip credit limits, and avoid applying tip credits to excessive non-tipped duties. 13 per hour for tipped employees; overtime pay at one and a half times the regular rate of pay; and a minimum salary level of $684 per week for salaried exempt employees). Section 203 (m)). In determining the wage of a tipped employee, the amount paid the employee by the employer is the amount described as paid to a tipped employee under Section 3(m), Fair Labor Standards Act of 1938 (29 U. What You Need to Know About Texas Minimum Wage, Overtime, and Other Wage Claims You can recover unpaid wages, overtime, and tips in Texas if you know your rights and how to enforce them. 12 SEC. states in one updated chart. Texas has adopted, by statute, the federal minimum tipped wage rate set forth in the Fair Labor Standards Act. 13 per hour, as long as their tips bring their total earnings up to at least the regular minimum wage of $7. Texas follows federal rules for tipped employees and exemptions. Jan 24, 2023 · What is the minimum wage in Texas? Texas adopts the federal minimum wage rate. These regulations cover topics like minimum wage, how employers can use tips towards that wage (known Jan 6, 2025 · 23 states and several cities increased minimum and tipped wages in 2025. Tipped employees includes those engaged in jobs in which they regularly and customarily receive tips. Please note that if an employee's wage with tips falls below the full minimum wage, employers are required to make up the difference. 13 per hour This is the minimum level needed to meet the federally mandated minimum wage, so all Texas cities adhere to it in their own employee laws. sjx dq4x3 sp2 dw yz1 ulpi 3fgw5 wj19 voj7j vpy