Depending on the state or even the city they are in, employers in the United States are subject to a variety of minimum wage rules. The Fair Labor Standards Act (FLSA), which is implemented by the U.S. Department of Labor, establishes the federal minimum wage at a fixed nationwide rate (DOL).
The federal minimum wage is currently $7.25 per hour and was last changed in 2009. President Biden recently increased the federal contractors’ minimum pay to $15, maybe as a forerunner to a national rise.
Many states and towns have taken the initiative to enact higher minimum wage rates in their jurisdictions in response to the federal government’s inaction. In situations like these, the law favors the minimum wage with the maximum benefit to the employee.
Other State minimum wages in 2022
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As of November 2022, the minimum wage in 30 states—including Washington, D.C., Guam, and the Virgin Islands—will be higher than the federal minimum wage. The federal minimum wage of $7.25 per hour is used in fifteen states, Puerto Rico, and the Commonwealth of the Northern Mariana Islands. Since five states have not passed their own minimum wage laws, the federal rate of $7.25 is used as the default.
Minimum Wage in Texas
According to Texas Labor Law, Texas’s state minimum wage is $7.25, which is the same as the federal minimum wage. Since January 24, 2009, this has been in force.
Employers may allocate a certain amount of tips, meals, and housing toward the minimum wage, subject to certain limitations. A patient of the Texas Department of Mental Health and Mental Retardation may be paid less than the minimum wage under certain circumstances. Additionally, people who are a specific age or have “productivity limitations” may fall under this category.
In Texas, the threshold for being considered a tipped employee is $20 per month, as opposed to the $30 per month required under the FLSA. Domestic workers, ranch and farm workers, prisoners, full-time students, and some temporary recreation facilities are all exempt from the Texas Minimum Wage.
The Texas Minimum Wage Act also covers further exemptions, such as:
- Working for, or being employed by, religious, educational, philanthropic, or nonprofit organizations
- a few businesspeople, salespeople, or public servants
workers in the home - a few students and young people
- Inmates
- household members
- certain venues for entertainment and pleasure
- Non-agricultural businesses that are exempt from paying into the state unemployment insurance fund
- dairy farming and livestock production
Texas Employees with Disabilities
The Fair Labor Standards Act governs subminimum wage rates and the lowest minimum wage for workers with disabilities for the majority of Texas firms. Nonprofit charitable organizations that provide evaluation, training, and employment services for disabled employees are exempt from Texas law’s coverage. That only holds true if the company complies with the federal laws that govern those activities.
Texas Tip Minimum Wage
- The current tipped minimum wage in Texas is $2.13 per hour.
- The minimum tipped wage rate outlined in the Fair Labor Standards Act has been approved by Texas law (TX Labor Code 62.052).
- According to TX Labor Code 62.052, a “tipped employee” is someone who regularly obtains tips of $20 or more per month while working in a profession.
- The Fair Labor Standards Act probably governs additional conditions and restrictions regarding tipped employees.
Again, it is crucial to remember that workers protected by the Fair Labor Standards Act are not subject to Texas’ minimum wage statute.
As a result, the Fair Labor Standards Act governs the requirements for tipped minimum wage for the majority of employers and employees, including those who get tips.
Consult TX Labor Code 62.151 for more details.
