What Is the Minimum Wage in Texas?

Meeting the federal requirements and acquiescence with the law has been a challenge for most businesses these days. But to make the company survive, they have to do that. This challenge is becoming bigger and bigger with the increase in the laws, including tax changes, paid leave for sick, and minimum wage rates.

Texas is the second-largest state of the U.S. on account of both area and population. To ensure the proper employment pay rate and keep it under control, it passed the Texas Payday Law. According to this law, the minimum wage for every employee is set to some extent, be it any occupation. It is also called as Federal Minimum Wage Rate, which fixes $7.25 per hour as the minimum amount as per law, reaching approximately $290 per week.

Overtime Rate

People working overtime are encouraged by increasing the minimum pay rate to 1.5 times more than the standard rate. It is the compensation for working for more than 40 hours a week. If any owner fails to pay a certain overtime amount to his employee, he can file a suit against him and ask for his righteous wage in every sense. Furthermore, the employee has two years, from the date the wage was due, with an additional amount as damages.

Exceptions to Texas Payday Law

There are some exceptions to this law, which are as follow:

Student Wage Rate

The high-school students who serve part-time may earn $6.16 per hour for working 20 days a week.

Tipped Employees Pay Rate

Tipped employees earn some money in addition to the pay they get. Their owners can pay them lesser than the minimum pay rate applicable, but their salary at the end should make it up to a total of $7.25 per hour, including the tips they get.

Teens Wage Rate

The teens’ wage rate is an exception. There is a general rule of offering paid training of 3 months to the teenagers for $4.25 per hour. It is less than the minimum wage in Texas. But once the individual starts his training session, the pay will be increased to the already discusses amount.

Exceptions for Employers

The organizations have the authority to call the staff for extra performance, who live in the business premises, excluding the paid working hours.

If the employer provides meals and accommodation to the employee, he may add up the amount for that meal and accommodation in a fixed per-hour salary.

The employees, who are mentally sick or physically-retarded, are granted permission to be paid lesser than the minimum wage rate.

Working Time

The employees in Texas are required to work 8 hours a day, making it to 40 hours per week. This way, they can earn the Federal Minimum Applicable Wage Rate.

Texas Labor Law Posters

The Texas labor Law authority and Fair Labor Standards have made it compulsory to publicize the poster of labor law. It ensures the acknowledgment of workers of the minimum wage rate and the overtime. If they do not act upon what they are told, they can be fined heavily.

Graphical Changes

The recent graphs have not shown any change in the minimum wage rates since 2009. It has been the same. Over the period, with the decreasing value of money, law authorities should increase the amount to at least $10 per hour.

Agriculture Sectors

However, agricultural sectors are encouraged by having the piece rates in their case. They can get more by an extended amount of productivity and hard work. Thus the more they produce, the greater they earn, and the more they can have a peaceful livelihood.

Written Proof

Companies are also required to provide wage statements to their employees. It helps in verifying the right payment of the whole staff.

Whether it’s Necessary to Increase the Pay Rate?

According to most Texans, it is felt that the Federal Minimum Pay Rate is not sufficient enough for a person who is even single to meet his or her needs. Around 16% of the population of Texas can easily live with the increase in their earnings. But, according to the analysts and economists, the state is not increasing it as it can impact the economy of Texas.

Some small businesses will have to cut down the lower layer of their employees to meet these pay rates otherwise than being filed against it.