Minimum Wage Requirements in Texas 2024

Overview of Texas's Minimum Wage Requirements

As of January 1, 2024, the minimum wage in Texas is set at $7.25 per hour, which aligns with the federal minimum wage. This rate applies to most employees in the state. It's important to note that Texas has not independently adjusted its minimum wage from the federal rate. This means that unless there are changes in federal legislation, the minimum wage in Texas will continue to mirror the federal minimum wage.

Currently, Texas does not have any future enacted increases or indexed automatic annual adjustments in place. This indicates that there are no immediate plans to increase the minimum wage in the near future. However, it's always advisable to consult official sources or legislation for the most accurate and current information on the minimum wage in Texas.

Understanding Local Minimum Wage Variations

In Dallas County, Texas, the living wage is $18.24 per hour as of the fiscal year 2024. This is an increase from the 2023 rate of $17.82 per hour. The City of Dallas adjusts the living wage for its general service contracts each year on October 1, to align with the City’s fiscal year.

In Bexar County, Texas, there are specific wage requirements for companies seeking tax abatements. The first is the Living Wage Requirement, which mandates that all new and existing employees at the project location must earn no less than the living wage, currently set at $15.43. The second requirement is the 70% Wage, which stipulates that within 1-year of the project location opening, 70% of all employees must earn a cash wage at or exceeding the 70% hourly wage requirements, currently set at $18.25.

Minimum Wage Eligibility and Exemptions

In the state of Texas, the minimum wage is set under the Texas Minimum Wage Act, which adopts the federal minimum wage rate. As of July 24, 2009, this rate is $7.25 per hour. However, it's important to note that there are several exemptions to this Act.

The primary exemption is for any person covered by the federal Fair Labor Standards Act (FLSA). Other specific exemptions include employment in, of, or by religious, educational, charitable, or nonprofit organizations. Professionals, salespersons, public officials, and domestic employees are also exempted.

Minimum Wage Considerations and Compliance Tips

As of January 1, 2024, food business employers in Texas need to be aware of several key minimum wage legal and compliance considerations. The basic combined cash and tip minimum wage rate is $7.25. Employers can count a maximum of $5.12 per hour in tips towards their obligation to pay minimum wage, known as the maximum tip credit.

In addition to wage considerations, employers are required to display certain posters in a conspicuous place that is convenient to all employees. These include the Texas Payday Law Poster and the Unemployment & Payday Law Poster. Starting from January 8, 2024, Texas employers must post a Reporting Workplace Violence notice in English and Spanish.

FAQs

• What is the current minimum wage in Texas? The current minimum wage in Texas is $7.25 per hour.
• Are there any future increases planned for the minimum wage in Texas? Currently, Texas does not have any future enacted increases or indexed automatic annual adjustments in place.
• Who is eligible for minimum wage in Texas? Most employees in Texas are eligible for minimum wage, but there are several exemptions under the Texas Minimum Wage Act.
• What are the key legal considerations for employers regarding minimum wage in Texas? Employers in Texas need to be aware of the basic combined cash and tip minimum wage rate, the maximum tip credit, and the minimum cash wage for tipped employees.

Information Source Links

• Texas Minimum Wage Law
• Wage Index
• U.S. Department of Labor's page on minimum wage for tipped employees
• Texas Law Help
• Texas Workforce Commission

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