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Help restaurant and franchise owners hire, pay, and retain your hourly team.

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Learn how to tackle the hardest aspects of paying restaurant workers from taxes and tip reporting to labor law compliance.
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HOURLY WAGE INDEX

Let’s talk wages in Texas

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$7.25

What is the minimum wage in Texas?

The minimum wage in Texas is currently set at the federal minimum wage rate, which is $7.25 per hour. This is the minimum wage that applies to most employees in Texas and It's important to note that the Texas minimum wage has not been adjusted independently from the federal rate.

Unless there are changes in federal legislation, the minimum wage in Texas will continue to align with the federal minimum wage. To ensure accurate and current information on the minimum wage in Texas, it is advisable to consult official sources or legislation.

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$29.44

What is the average wage in Texas?

The average hourly wage in Texas is $29.44 for the whole state. There can be some variance depending on the occupation and location.

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$31.82

What is the living wage in Texas?

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$7.25

What is the minimum wage in Austin, Texas?

Austin, Texas does not have a city-wide minimum wage rate. The state minimum wage rate is $7.25 per hour, which is the same as the federal minimum wage. However, it's important to note that some companies in Austin may have their own minimum wage policies that are higher than the state and federal minimums.

A guide to hourly labor laws in Texas

  • Standard Minimum Wage: $7.25 (Tex. Lab. Code § 62.051).
  • Tipped Minimum Wage: $2.13, so long as wages and tips equal at least minimum wage (Tex. Lab. Code § 62.052).
  • Overtime: Hours exceeding 40 in a fixed week are overtime, paid at 1.5 times the regular rate (29 US Code § 207) (DoL). 
  • Meal Breaks: No state or federal law requiring meal breaks. Federal law allows unpaid, non-working, bonafide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL).
  • Rest Breaks: No state or federal law requires rest breaks. Breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18). 
  • Wage Deductions: Only those required by law, such as taxes, and those authorized by the employee in writing. Third-party deductions benefitting the employer may not reduce wages below the applicable minimum (Tex. Lab. Code § 61.018) (29 C.F.R. § 4.168) (29 US Code § 203).
  • Final Paychecks:
    • Termination: By the sixth business day.
    • Resignation: By the next regularly scheduled payday (Tex. Lab. Code § 61.014).
  • Wage Payment Frequency:
  • Paid Sick Leave: No state/federal law. Policies are determined by the employer or through collective bargaining agreements (DoL).
  • Paid Family and Medical Leave: No paid leave. Up to 12 unpaid weeks in one year for eligible employees (FMLA).
  • Maximum Daily and Weekly Hours for Children Under 16:
    • 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).
  • Maximum Daily and Weekly Hours for Children 16 and 17: No state/federal law restricting work hours beyond required school hours for non-hazardous occupations. (DoL) (29 C.F.R. § 570.35).

Frequently asked questions

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?

This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area. Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.

Offering competitive pay is one of my top priorities—what other resources do you have that might help?

We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:


  • Short, easy to understand job descriptions
  • Mobile-friendliness
  • Quick communication
  • Streamlined interview stages
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A Workstream hiring specialist can help you identify high impact ways to improve your applicant experience, and even help you determine what is a good hourly wage for your location and business.

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