State Specific

Texas hourly wage

January 6, 2026TXstate-laws

Texas Hourly Wage: What Employers Need to Know for Compliance (SwiftSDS)

If you’re looking up texas hourly wage requirements, you’re likely trying to confirm (1) the current minimum wage in Texas, (2) whether Texas is expected to raise minimum wage, and (3) what compliance steps HR teams and business owners need to take to avoid wage-and-hour violations. This guide breaks down the texas minimum wage law, common exceptions, Dallas-specific questions (like “minimum wage Dallas TX”), and practical pay administration tips.

For broader multi-state context and wage tracking, see SwiftSDS’s guide to Pay wage.

Texas minimum wage law: the baseline hourly rate

What is the minimum wage in Texas today?

Texas does not set a higher state minimum wage than federal law. Under the Texas Minimum Wage Act (Texas Labor Code, Chapter 62), the Texas minimum wage is tied to the federal minimum wage under the Fair Labor Standards Act (FLSA). As a result, the texas minimum wage for covered, non-exempt employees is generally:

  • $7.25 per hour (the current federal minimum wage)

This is why searches like “minimum wage in Texas increase” or “Texas to raise minimum wage” often lead to updates about federal proposals or local initiatives rather than a statewide wage hike—because the state rate tracks the federal floor.

Does Dallas have a higher minimum wage than Texas?

A frequent question is minimum wage Dallas TX. In Texas, cities generally cannot set a minimum wage that overrides the state/federal framework in the way some other states allow. For most private employers, Dallas follows the same minimum wage baseline as the rest of Texas (subject to federal coverage and exemptions).

Action item: If you operate in multiple states, don’t assume Texas rules match elsewhere. For comparison, see SwiftSDS’s overview of Pay rate in America.

Average Texas hourly wage vs. the legal minimum

Many HR teams also want compensation benchmarks such as the average texas hourly wage. It’s important to separate:

  • Legal compliance (meeting minimum wage and overtime rules), from
  • Market competitiveness (paying at or above the going rate for your industry/location).

“Texas hourly pay” varies widely by occupation, metro area, experience level, and whether roles are hourly vs. salaried non-exempt/exempt. Even if your pay rate in Texas meets the legal minimum, a competitive wage strategy may require paying above it—especially in high-demand markets.

Action item: When reviewing your texas wage structure, verify (1) minimum wage and (2) proper exemption classification—misclassifying employees as exempt is a common compliance risk. SwiftSDS summarizes federal expectations in Hourly compensation requirement.

When a lower “cash wage” may apply (tips, youth, and other exceptions)

Tipped employees (tip credit under FLSA)

For tipped roles, employers may be able to take a tip credit under the FLSA if specific requirements are met (including notice obligations and ensuring the employee still receives at least the minimum wage when tips are included). Tip credit rules can be nuanced and fact-specific.

Action item: Maintain accurate tip reporting and time records, and run pay-period checks to confirm total hourly earnings meet or exceed $7.25/hour.

Youth minimum wage under FLSA

Federal law also includes a youth minimum wage provision for certain employees under age 20 during their first 90 consecutive calendar days of employment (subject to restrictions). If you use this, document age, start date, and duration carefully.

Local government and special categories

Some FLSA materials apply differently to agriculture or state/local government employers. If those categories apply, review the appropriate federal notices and guidance.

Overtime and the regular rate: where Texas employers get tripped up

Although people search “texas hourly wage” to find the minimum, the most expensive violations often involve overtime. Texas follows the FLSA overtime standard for covered, non-exempt employees:

  • 1.5× the employee’s regular rate of pay for hours over 40 in a workweek

Key compliance point: overtime is based on the workweek, not the pay period (e.g., biweekly). Also, overtime calculations must include certain non-discretionary bonuses and differentials in the “regular rate.”

Action item: Audit your payroll rules for shift differentials, production bonuses, and commissions to ensure overtime is calculated correctly.

Required postings and notice compliance (often overlooked)

Even if your payroll is correct, missing required postings can create legal exposure. For most Texas employers covered by the FLSA, a core requirement is posting the federal minimum wage and hour rights notice. SwiftSDS recommends keeping the current version available and visible to employees.

Relevant federal poster(s) include:

Action item: Post the applicable FLSA notice(s) in a conspicuous place where employees can readily see them (and provide electronic access if you have remote workers and meet DOL guidance for electronic posting).

For Texas employers, safety compliance is another common audit area. If you’re also reviewing workplace posting and training duties, see Osha regulations texas for how federal OSHA requirements apply in Texas.

Is Texas going to raise the minimum wage?

Search phrases like “Texas to raise minimum wage” and “minimum wage in Texas increase” come up whenever legislation is introduced at the state or federal level. The practical takeaway for HR teams is:

  1. Texas typically tracks federal minimum wage unless state law changes.
  2. Many “raise minimum wage” headlines reflect proposed bills that may not pass or may change.
  3. Employers should build a process to monitor wage changes and update postings, offer letters, and payroll systems quickly if the federal or state rate changes.

Action item: Create an internal “wage change checklist” that includes payroll system updates, manager communications, onboarding documents, and required poster refreshes.

For comparison across states that do set higher wage floors, see SwiftSDS’s alabama minimum wage page and related state law content such as california employment laws (California frequently updates wage and hour requirements).

Practical compliance steps for setting a pay rate in Texas

1) Confirm coverage and classification

  • Determine whether your employees are FLSA-covered and whether they are non-exempt (overtime-eligible) or exempt (must meet salary and duties tests).

2) Set a compliant hourly base rate

  • Ensure the base rate meets $7.25/hour (or higher if you choose to pay above market or for internal equity).

3) Validate timekeeping accuracy

  • Require accurate time records for all non-exempt employees.
  • Train supervisors not to allow “off-the-clock” work (including pre-shift prep, post-shift cleanup, and after-hours calls/messages).

4) Recalculate overtime correctly

  • Include eligible bonuses/differentials in the regular rate where required.
  • Pay overtime based on the workweek.

5) Keep required notices current

  • Post the up-to-date FLSA notice(s), including Spanish versions where appropriate for your workforce.

FAQ: Texas hourly wage

What is the current Texas minimum wage?

For most covered employees, the Texas minimum wage equals the federal minimum wage: $7.25 per hour, because Texas law ties the state rate to the federal rate.

Is there a higher minimum wage in Dallas, Texas?

Generally, no—Dallas employers typically follow the same Texas/federal minimum wage framework (subject to federal coverage and any role-based exceptions like tipped rules).

How does “average Texas hourly wage” affect compliance?

The average texas hourly wage is a market benchmark, not a legal requirement. Compliance is based on meeting minimum wage, paying overtime correctly, and following notice/posting rules.

Related SwiftSDS resources

SwiftSDS helps employers stay current on labor law requirements and postings; this article is for informational purposes and is not legal advice.