When does the law regarding minimum wage apply?

You're covered if:You work for an employer covered by the FLSA (almost every business of any size).You're at least 20 — workers under 20 can be legally paid $4.25/hr for their first 90 calendar days on the job.You're not a full-time student or trainee on a special DOL subminimum-wage certificate.Three things people get wrong:"Only my state's minimum wage matters." You get the highest of federal, state, or local — period. A Seattle barista is owed Seattle's rate, not Washington's, and not $7.25."Undocumented workers don't have minimum wage rights." Flat wrong. The FLSA covers every worker regardless of immigration status, and the DOL has confirmed this in writing for decades."Independent contractors don't get minimum wage." True for actual contractors — but misclassification is rampant. If your boss controls when, where, and how you work, you're probably an employee in the eyes of the law, no matter what the 1099 says.

Texas Minimum Wage (2026) - $7.25/hr, No Higher City Rates

Q: What should I do if my employer is paying me less than minimum wage?

Step 1: Look up your real number. Check your state and your city — the local rate often beats both. The DOL keeps a state-by-state table, and big cities post their own.Step 2: Do the division. Total weekly pay ÷ total hours worked = your actual hourly rate. If it lands below the floor, you have a claim, and the math itself is your evidence.Step 3: Save everything. Pay stubs, schedules, screenshots of scheduling apps, your own time log. Anything with a date.Step 4: File. The DOL Wage and Hour Division handles federal claims; your state labor department often moves faster on state-rate violations. Most wage attorneys take these cases on contingency.

Q: What are the common mistakes to avoid regarding minimum wage?

Don't roll over on illegal deductions. Your employer can't dock you for till shortages, broken dishes, walkout customers, or uniforms if doing so drops you below minimum wage. They get sued over this constantly.Don't let tip-credit math slide. If you're tipped and a slow shift means tips + $2.13 base didn't hit $7.25, your employer owes you the difference for that shift.Don't sign anything that says you'll work below the minimum. Such waivers are unenforceable under federal law — you can't contract around the FLSA.

Researched by Ahmed R. J. Alsaedi, Founder & Head Researcher

Primary sources cited; not legal advice.

Source: Fair Labor Standards Act (FLSA), 29 U.S.C. § 206 — Federal minimum wage established 1938, last increased in 2009 to $7.25/hour (unchanged for 17 years as of 2026).

About this article

Sourced from primary statutes (U.S. Code, CFR, state compiled statutes) and official government agency guidance. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards

My employer hasn't paid me in Texas?See the focused guide →

Texas Law

Primary statute: Tex. Labor Code § 62.051

How Texas differs from federal law

1. The Rule: Texas Minimum Wage in 2026

Texas Minimum Wage Act, Tex. Labor Code § 62.051, sets the state minimum wage at the federal Fair Labor Standards Act rate of $7.25/hr. This has been the rate since July 24, 2009 — Texas has not enacted any increase since the FLSA itself last increased. The Texas Minimum Wage Act is, in effect, an FLSA-mirror statute: it provides a state-law cause of action for the same $7.25/hr floor that federal law already requires.

2. Local Preemption — No City Override

Texas Labor Code § 62.0515 (added in 2003 and reinforced by HB 2127, the 2023 "Death Star" preemption statute) prohibits any Texas city, county, or other political subdivision from setting a minimum wage higher than the state rate. Austin, Dallas, Houston, and San Antonio have all attempted municipal minimum-wage ordinances over the past decade; all have been preempted. Only the state legislature can raise the rate, and there is no indexing mechanism — increases require fresh legislation.

3. Tipped Workers

Texas follows the federal FLSA tipped-employee structure:

Cash wage: $2.13/hr (Tex. Labor Code § 62.052; mirrors 29 U.S.C. § 203(m))
Tip credit: Up to $5.12/hr
Total: Cash wage + actual tips must reach $7.25/hr in every pay period; the employer must make up any shortfall
80/20 rule (29 C.F.R. § 531.56(f)): Tipped employees performing more than 20% non-tip-producing work (rolling silverware, setting tables, etc.) in any workweek lose the tip credit for those hours — employer must pay full $7.25 for that work
Tip pooling: Mandatory tip pools must include only employees who customarily and regularly receive tips; managers and supervisors cannot share in a tip pool (29 U.S.C. § 203(m)(2)(B))

4. Coverage Under Federal FLSA

Almost every Texas employer is covered through one of two FLSA paths:

Enterprise coverage: Employer with annual gross sales of $500,000+ OR engaged in named enterprises (hospitals, schools, residential care facilities, public agencies)
Individual coverage: Employees personally engaged in interstate commerce — including using the phone for interstate calls, processing credit card payments, handling out-of-state mail, or producing goods that will cross state lines

The Fifth Circuit construes individual coverage broadly. Even small Texas businesses (mom-and-pop restaurants, single-owner construction) are typically covered through individual coverage of any employee who handles interstate calls or mail.

5. How to Enforce — Two Parallel Tracks

Texas Workforce Commission (TWC) — Texas Payday Law track: File at twc.texas.gov/wage-and-hour or call (800) 832-9243. 180-day deadline from when the wages were due (Tex. Labor Code § 61.014). TWC is free; investigates within 60–90 days; can order payment + administrative penalty up to $1,000 per violation under § 61.053.
US DOL Wage and Hour Division — federal FLSA track: File at dol.gov/whd/complaints or call 1-866-487-9243. 2-year SOL; 3 years for willful (29 U.S.C. § 255(a)). DOL has district offices in Dallas, Houston, McAllen, and San Antonio. Recovery: back wages + 100% liquidated damages.
Private FLSA lawsuit (29 U.S.C. § 216(b)): File in Texas state court or one of the four federal districts (N.D., S.D., E.D., W.D. Texas). Prevailing employees recover back wages + 100% liquidated damages + mandatory attorney's fees. Collective actions (opt-in) are common.

Run both tracks in parallel. Filing with TWC does not preclude a federal lawsuit, and vice versa — the 180-day TWC window closes much faster than the federal SOL, so file with TWC first if your claim is fresh.

6. Damages and Penalties

Back wages: The shortfall between $7.25/hr and what you were actually paid, for every underpaid hour in the SOL window
100% liquidated damages (29 U.S.C. § 216(b)): Equal to the back-wage award — doubles recovery
Mandatory attorney's fees for prevailing employees in private FLSA suits
TWC administrative penalty up to $1,000 per violation (Tex. Labor Code § 61.053)
Anti-retaliation: Both FLSA § 215(a)(3) and Tex. Labor Code § 61.018 prohibit termination, demotion, or other retaliation for filing a wage claim. Texas at-will employmentThe default US rule that either the employer or the employee can end the job at any time, for almost any reason. It does not allow firing you for an illegal reason — such as discrimination, retaliation, or refusing to break the law. does not permit firing for protected wage-complaint activity.

7. Resources

Texas Workforce Commission Wage and Hour: twc.texas.gov — (800) 832-9243 — 180-day deadline
US DOL WHD (Texas): Dallas, Houston, McAllen, San Antonio district offices — dol.gov/whd/complaints — 1-866-487-9243
State Bar of Texas Lawyer Referral: (800) 252-9690
Texas RioGrande Legal Aid: (888) 988-9996 — wage-theft help in South Texas
Lone Star Legal Aid: (713) 652-0077 — Greater Houston, East Texas

Additional Steps in Texas

The Texas Payday Law is your fastest path; the federal FLSA is your longest reach. TWC accepts claims within 180 days and can recover wages without a lawyer. FLSA gives 2–3 years with double damages and free attorney representation. Most Texas wage-theft victims file both — TWC first (deadline urgency), then DOL or private suit for the older periods TWC can't reach.

Relevant Law: Tex. Labor Code § 62.051 (Texas Minimum Wage Act — adopts FLSA $7.25/hr); § 62.052 (tipped employee $2.13 cash wage + $5.12 tip credit); § 62.0515 (local preemption); § 61.011 (Texas Payday Law); § 61.014 (180-day TWC claim deadline); § 61.018 (anti-retaliation); § 61.053 ($1,000 administrative penalty); 29 U.S.C. § 206 (FLSA federal floor); 29 U.S.C. § 216(b) (private right of action); 29 U.S.C. § 255(a) (FLSA 2/3-year SOL); HB 2127 / Tex. Gov't Code Ch. 552 (2023 Texas Regulatory Consistency Act — broad local preemption)

Federal baseline: Minimum Wage nationwide

What is this right?

The federal floor is $7.25 an hour. It's been there since July 24, 2009 — the longest stretch the U.S. has gone without a raise since the minimum wage was created in 1938. Inflation has eaten roughly 30% of its purchasing power in that time, which is why so many states and cities pulled away years ago.

You're owed whichever number is highest where you work — federal, state, or local. As of 2026, that's $16.50 in California for most employers, $15+ in New York, Washington, Massachusetts, and Connecticut, and over $19 in cities like Seattle and Emeryville. The $7.25 federal rate is still the actual minimum in about 20 states.

Tipped workers see a different number on the federal side — $2.13/hour base — but your tips plus base have to add up to at least $7.25 across the workweek. If they don't, your employer is legally required to make up the gap. Quietly skipping that math is one of the most common forms of wage theftWhen an employer fails to pay the wages legally owed — including unpaid overtime, off-the-clock work, kept tips, or below-minimum-wage pay. It is illegal under federal and state wage-and-hour laws. the DOL investigates.

When does it apply?

You're covered if:

You work for an employer covered by the FLSA (almost every business of any size).
You're at least 20 — workers under 20 can be legally paid $4.25/hr for their first 90 calendar days on the job.
You're not a full-time student or trainee on a special DOL subminimum-wage certificate.

Three things people get wrong:

"Only my state's minimum wage matters." You get the highest of federal, state, or local — period. A Seattle barista is owed Seattle's rate, not Washington's, and not $7.25.
"Undocumented workers don't have minimum wage rights." Flat wrong. The FLSA covers every worker regardless of immigration status, and the DOL has confirmed this in writing for decades.
"Independent contractors don't get minimum wage." True for actual contractors — but misclassification is rampant. If your boss controls when, where, and how you work, you're probably an employee in the eyes of the law, no matter what the 1099 says.

What to Do If Your Employer Pays Below Minimum Wage

Step 1: Look up your real number. Check your state and your city — the local rate often beats both. The DOL keeps a state-by-state table, and big cities post their own.

Step 2: Do the division. Total weekly pay ÷ total hours worked = your actual hourly rate. If it lands below the floor, you have a claim, and the math itself is your evidence.

Step 3: Save everything. Pay stubs, schedules, screenshots of scheduling apps, your own time log. Anything with a date.

Step 4: File. The DOL Wage and Hour Division handles federal claims; your state labor department often moves faster on state-rate violations. Most wage attorneys take these cases on contingency.

What should you NOT do?

Don't roll over on illegal deductions. Your employer can't dock you for till shortages, broken dishes, walkout customers, or uniforms if doing so drops you below minimum wage. They get sued over this constantly.

Don't let tip-credit math slide. If you're tipped and a slow shift means tips + $2.13 base didn't hit $7.25, your employer owes you the difference for that shift.

Don't sign anything that says you'll work below the minimum. Such waivers are unenforceable under federal law — you can't contract around the FLSA.

Texas follows the federal $7.25/hr minimum wage with no city override allowed (Tex. Labor Code § 62.0515 + HB 2127). Workers have two enforcement paths: TWC (180-day deadline, free) or US DOL/private FLSA suit (2-year SOL, 100% liquidated damages, mandatory attorney's fees).

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Common Questions

What is the minimum wage where I work?

It's the higher of the federal $7.25 per hour and your state or city rate. Many states and cities are well above the federal floor, with some at $15 or more. Check your state's section above for the current figure and how it's enforced.

Can a city set a higher minimum wage than the state?

In many states, yes — cities like New York, Chicago, and Seattle set local minimums above the state rate. But some states, such as Texas, preempt local wage laws, so the state rate applies statewide. Your state's section above notes whether local rates apply.

What can I recover if I'm paid below minimum wage?

You can generally recover the unpaid difference as back wages, and many states add liquidated damages — often doubling the amount — plus attorney's fees. Deadlines to file typically range from about two to six years. Your state's section above shows the recovery rules where you work.

Does the minimum wage apply to tipped workers?

Yes. An employer may pay a lower cash wage to tipped workers, but your cash wage plus tips must still reach at least the full minimum wage. If it doesn't, the employer owes you the difference. See the tip and wage-theft guide for more detail.

Minimum Wage in other states

Same topic, different jurisdiction. Pick the one that applies to you.

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Every reference below links to its primary source — the statute book, regulator, or court — and carries a verification date. See our citation methodology for how this works.

Texas

Federal

StatuteFair Labor Standards Act § 6 (minimum wage)
Sets the federal minimum wage at $7.25/hr (since July 2009) and the tipped minimum at $2.13/hr.
Regulation29 C.F.R. Part 531 (wages, tips, deductions)
Governs the FLSA tip credit, what counts toward minimum-wage compliance, and lawful deductions.
Agency guidanceDOL — State Minimum Wage Laws
Official cross-jurisdiction table; you are entitled to the higher of federal, state, or local rate.