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2020 Minimum Wage in Texas: $7.25 per hour
Texas mostly stays in line with the federal minimum wage of $7.25 an hour. This is only for non-exempt workers, as exempt or salary workers are paid a flat rate instead of per hour. There are also exemptions for minimum wage in line with the federal Fair Labor Standards Act (FLSA).
Exemptions exist to the minimum wage, per the Texas Workforce Commission:
- Employment in, of or by religious, educational, charitable or nonprofit organizations;
- Professionals, salespersons or public officials;
- Certain youths and students;
- Family members;
- Amusement and recreational establishments;
- Non-agricultural employers not liable for state unemployment contributions;
- Dairying and production of livestock;
- Sheltered workshops.
Tipped Minimum Wage: $2.13
The minimum tipped wage in Texas is $2.13 per hour, which includes a $5.12 tip credit with a $2.13 minimum cash wage. This is the same as required by the FLSA. Unlike the FLSA, however, Texas defines tipped workers as earning $20 in tips instead of the federal $30 minimum.
Texans who work 40 hours a week can make up to $290. This weekly wage assumes a typical workweek at the $7.25 per hour rate, but doesn’t take into account an individual’s income tax withholdings.
Annually, a Texas citizen can make $15,080. The annual estimate assumes a typical 52-week per-year, 40-hour per-week position at the $7.25 per hour rate, but again, it does not account for any withholding, so the actual take-home pay will be lower for minimum wage workers. Additionally, the actual number may be different due to a worker not working full time or taking unpaid time off; this amount also does not include any holiday pay.
In Texas, employees can earn up to $10.88 in overtime. According to Texas overtime laws, employers must pay workers the overtime rate for hours worked over a 40-hour workweek. This assumes the federal rate of 1.5 times the federal minimum wage, $7.15.
Texas Minimum Wage Increase News
Texas has declined to increase the minimum wage beyond the federal minimum in the past, and it is not likely that a statewide wage increase will pass in the near future. State Rep. Lina Ortega, D-El Paso, introduced HB 328, the latest attempt to raise the minimum wage in Texas for the 2019 legislative session. With the minimum wage not likely to increase, except in very specific cases, it may be a good time to ask for a raise.
However, Dallas County raised its minimum wage to $15 an hour at the end of 2019, joining cities like Austin, San Antonio, and Bexar and Travis counties. It’s important to note that many employees in that county already make more than $15 an hour — fewer than 50 employees will be affected by this new minimum wage. Contracted and private-sector workers will not see an increase, although officials are looking for ways to increase their pay next.
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