Minimum Wage $7.25 PER HOUR
Texas follows the federal minimum wage for most workers. The minimum wage in Texas is $7.25 per hour.
Tipped employees may be paid a direct cash wage of at least $2.13 per hour, but tips must bring the worker's total pay to at least $7.25 per hour. If tips do not cover the difference, the employer must make up the shortfall.
Overtime Laws 1.5X RATE
Texas does not have a separate state overtime law for most private employees. Most overtime claims follow the federal FLSA, which requires one and a half times the regular rate for hours worked over 40 in a workweek.
At the federal $7.25 minimum wage, the overtime rate is $10.88 per hour. Overtime is calculated by workweek, not by day. Bonuses, commissions, day rates, piece rates, and other pay may need to be included when calculating the regular rate.
Meal & Rest Breaks NO MANDATE
Texas does not generally require employers to provide meal or rest breaks for adult employees. Break rights may still come from an employment agreement, collective bargaining agreement, or workplace policy.
When an employer provides short rest breaks, those breaks are usually paid. A meal period may be unpaid only when the employee is fully relieved of duty and the time qualifies as a bona fide meal period.
Final Paycheck 6 DAYS / NEXT PAYDAY
Texas has specific final-pay rules under the Texas Payday Law. When an employee is discharged, laid off, or otherwise involuntarily separated, final wages are generally due within six calendar days after discharge.
When an employee quits, resigns, retires, or otherwise leaves voluntarily, final wages are generally due by the next regularly scheduled payday. Commissions, bonuses, vacation pay, and other benefits depend on the wage agreement or written policy.
Texas Payday Law WAGE PAYMENT
The Texas Payday Law gives workers a state-law path for certain unpaid wage claims. It can cover promised wages, commissions, bonuses, deductions, final pay, and other compensation owed under an agreement or policy.
Texas also limits wage deductions. An employer generally needs written authorization, a court order, or another legal basis before deducting money from wages. Deductions that cut into minimum wage or overtime can raise additional federal issues.
Filing a Claim 180 DAYS / 2 YEARS*
Texas workers may file certain wage claims with the Texas Workforce Commission under the Texas Payday Law. A TWC wage claim generally must be filed within 180 days after the date the wages became due.
Federal FLSA minimum wage and overtime claims generally have a two-year limitations period, extended to three years for willful violations. The correct deadline depends on the type of claim and whether the worker proceeds under the Texas Payday Law, the FLSA, or another legal theory.
Employee Misclassification COMMON VIOLATION
Some Texas employers label workers as independent contractors or exempt employees to avoid paying overtime, payroll taxes, or other wage obligations. A job title, contract, 1099 form, or salary does not automatically decide whether wage protections apply.
The actual working relationship, economic realities, and day-to-day duties matter. Workers who were wrongly classified may be able to recover unpaid overtime and other wages under federal law.
This article is provided for informational and educational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship with Josephson Dunlap LLP. Wage and hour laws vary by state, and the application of these laws depends on the specific facts of each situation. The figures and information cited above are current as of the date of publication and are subject to change. Prior results in other matters do not guarantee or predict a similar outcome in any future matter. If you believe your wages were not paid correctly, consult a qualified, licensed employment attorney.
Think You May Be Owed Back Wages?
Josephson Dunlap reviews wage claims for Texas workers at no cost. There is no fee unless wages are recovered. A case manager will go through your situation and tell you where you stand.