The minimum wage in Texas is $7.25 per hour, the same as the federal minimum wage. Tipped employees must be paid at least $2.13 per hour, but employers must ensure wages and tips combined equal at least the minimum wage.
According to the U.S. Bureau of Labor Statistics, the average hourly wage in Texas is $26. Wages vary by occupation, industry, and location.
The estimated living wage in Texas is $21.77 per hour. A living wage represents the estimated hourly rate needed to cover basic living expenses, including housing, food, transportation, healthcare, and other essential costs.
A guide to hourly labor laws in Texas
- Termination: By the sixth business day.
- Resignation: By the next regularly scheduled payday (Tex. Lab. Code § 61.014).
- Exempt: At least once per month.
- Non-exempt: At least twice per month. (Tex. Lab. Code § 61.011).
- School session: No working during school hours; up to three hours per day and 18 hours per week.
- Non-school session: Up to eight hours per day and 40 hours per week. Working hours: Only between 7 a.m. and 7 p.m., extended until 9 p.m. June 1 through Labor Day. Limited exceptions (Tex. Lab. Code § 51.013) (29 C.F.R. § 570.35).
What is the difference between gross wages and net wages?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
What is a good hourly wage?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
Offering competitive pay is one of my top priorities—what other resources do you have that might help?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
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