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.
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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