Texas Minimum Wage Increase

July 17th, 2008 Posted by Derrick

The Texas minimum wage will increase from $5.85 to $6.55 per hour on July 24, 2008. This 70-cent increase mirrors the increase in the federal minimum wage under the Fair Minimum Wage Act of 1007 on the same day. Under that bill, the federal minimum wage is scheduled to increase a total of 3 times between 2007 and 2009. Each increase is 70 cents. This brings the federal minimum wage from $5.15 per hour to $7.25 per hour.

 

According to the US Department of Labor, the Texas minimum wage statute does not contain current dollar amounts. Instead, the state adopts the federal minimum wage by reference.

 

A number of other states also adopt the federal minimum wage including Idaho, Maryland, South Dakota, Virginia and Oklahoma.

 

The Texas minimum wage specifically excludes any employee covered by the Fair Labor Standards Act or FLSA, the primary federal minimum wage law. The FLSA applies to employers who engage in interstate commerce, as well as those with revenue of $500,000 or more.

 

According to the most recent issue of Texas Business Today, it is almost impossible to be a modern business in today’s marketplace and not be engaging in interstate commerce. That’s because using the Internet, accepting credit cards, using the phone and email are all engaging in interstate commerce. That

automatically qualifies an employer under the FLSA.

 

Texas Business Today is a publication of the Texas Workforce Commission, or TWC.

 

Texas has no overtime law at the state level. Instead, most workers are entitled to 1.5 times their usual rate of pay after working 40 hours under federal law.

 

Under the Texas Payday Law, employers must pay salaried exempt workers at least once per month. All other workers must be paid at least twice per month, at regular intervals. Employers are required to display a poster notifying employees of the day and interval of payday.  

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Posted in Employment Laws, Minimum Wage, Overtime, Texas, Wage and Hour
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  1. Posted by: Mary Everitt

    An employee making $6.50 per hour states that I must pay her $7.20 per hour due to the wage increase (a total of $.70 as the law applies to persons making $5.85). Could this possibly be true?

  2. Posted by: Amelia

    Hi Mary! The employee is half right. She is entitled to more than $6.50 per hour, for each hour worked since July 24, 2008. That’s the date when both the federal and Texas minimum wage went up to $6.55 per hour. However, there is no law that the employee must receive a 70 cent increase. Only employees who were making $5.85 per hour received a 70 cent increase.

    So the employee is entitled to a 5 cent increase, to $6.55 per hour.

    If you have other questions, feel free to post them on our forum for employers at http://www.humanresourceblog.com. And thanks for reading! Amelia

  3. Posted by: Carole

    I was injured a year ago July 18th under the care of [name deleted], an OB/GYN and Nurse Anesthetist [name deleted.] I had gone in to the hospital for a routine hysterectomy. A spinal block needle used to deliver the anesthesia pierced some nerve endings leaving my right leg partially paralyzed causing all kinds of nerve damage and severe and constant pain. I can no longer do my normal chores needed around my home. I will be hiring someone part time to work for me. Since I will receive no help from anyone though it was no fault of my own, I am concerned about the cost of this additional help. What are some of the requirements I must meet when it comes to salary and reporting?

  4. Posted by: Amelia

    Hi Carole! We’re so sorry to hear about your situation. It sounds like you have a disability under the EEOC definition. This means you may qualify for Social Security disability payments. It sounds like you are not employed, but it you are, the employer probably must make reasonable accommodations for your disability. You should also contact a lawyer who specializes in medical malpractice cases, if you have not already done so. For a complete rundown of salary and reporting requirements, post a question on our sister site, http://www.humanresourceblog.com. While it’s tempting to break the law, the cost is much greater in the long run. Best of luck to you, and thanks for reading the blog! ~ Amelia

  5. Posted by: Karen

    Hi I work for a restraunt and the amount paid will not be increased by our boss for bussers and hostess. He claim they do not get the raise because they earn a tip out from the wait staff. Is this correct?

  6. Posted by: Amelia

    Hi Karen! That’s a tough situation. For a complete discussion, please post the question on our forums at http://www.laborlawtalk.com. And thanks for reading the blogs! ~Amelia

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