Texas Minimum Wage Calculator

💡 Texas Wage Law Essentials

• Standard Minimum Rate: Under the Texas Minimum Wage Act (Texas Labor Code § 62.051), Texas adopts the federal Fair Labor Standards Act (FLSA) statutory baseline of $7.25/hour.
• Municipal Preemption: Under Texas Labor Code § 62.0515, local political subdivisions (including Austin, Houston, Dallas, San Antonio, and Fort Worth) are preempted from establishing local minimum wage mandates for private employers.
• Tipped Minimum Cash Wage: Employers may pay a direct cash wage of $2.13/hour and claim up to a $5.12/hour tip credit for workers who customarily earn more than $20/month in tips (§ 62.052).
• Tip Shortfall Guarantee: If direct cash pay ($2.13/hr) plus tips average less than $7.25/hr across all weekly hours worked, the employer must fund the entire shortfall in direct wages.
• Youth & Student Rates: Newly hired workers under 20 years of age may be paid an opportunity training rate of $4.25/hour for their initial 90 consecutive calendar days. Full-time students may receive 85% ($6.16/hour).
• Overtime Pay: Non-exempt employees working over 40 hours in a workweek must receive 1.5× regular pay. For tipped employees, the direct cash overtime rate is $(1.5 \times \text{Base Minimum Wage}) - \text{Tip Credit} = (1.5 \times \$7.25) - \$5.12 = \$10.875 - \$5.12 = \$5.755 \approx \$5.76/\text{hour}$.