Texas Minimum Wage (2025)

The Texas minimum wage for 2025 is set at $7.25 per hour.

For tipped employees in Texas, the minimum cash wage is $2.13 per hour. Employers may take a tip credit, but must ensure tipped employees earn at least the full minimum wage of $7.25 when direct wages and tips are combined. Federal tipped minimum applies. Employers must ensure total earnings (wage + tips) meet at least $7.25/hour. Understanding the tipped minimum wage is essential for both employers and workers in the service industry.

Texas allows a youth minimum wage of $4.25 per hour under specific conditions. Federal youth wage applies to workers under 20 during their first 90 consecutive calendar days of employment. This reduced training wage helps employers create entry-level opportunities while ensuring young workers receive fair compensation during their initial employment period.

Like most states, Texas follows standard overtime regulations where eligible employees must receive overtime pay for hours worked beyond 40 in a workweek.

Important considerations for Texas's minimum wage law include: Adopts federal rate. FLSA exclusions apply. Employers should consult with legal counsel to ensure full compliance with these provisions.

For the most current and authoritative information on Texas's minimum wage laws and regulations, employers and workers should consult the official Texas labor department website or legal counsel. Understanding your rights and obligations regarding minimum wage, tipped wages, and youth employment is essential for both employers and employees.