Texas Minimum Wage Increase

August 6th, 2008 Posted by Madison

Like many states that tie their minimum wage to the federal minimum wage, the Texas minimum wage rose to $6.55 per hour on July 24, 2008. This increase is directly related to the increase in the federal minimum wage as set forth in the Fair Minimum Wage Act of 2007. This act introduced a series of three increases, each of 70 cents over three years. The third and last increase will occur on July 24, 2009.

 

The Texas state minimum wage law is tied to the federal minimum. In fact, according to the US Department of Labor, the Texas law doesn’t even mention a dollar amount. Instead, it references the federal minimum wage amount and adopts that wage as its own.

 

In Texas, employers covered by the primary federal minimum wage statute, the FLSA or Fair Labor Standards Act, are exempt from the Texas state minimum. Companies included under FLSA are those which earn $500,000 or more annually, or which engage in interstate commerce.

 

The Texas Workforce Commission provides the business publication Texas Business Today. A recent issue of this publication states that in the age of the Internet, it’s nearly impossible for a company not to conduct business across states. Any company that uses the Internet, accepts credit cards or corresponds via email is engaged in interstate commerce, thereby qualifying it as an employer under FLSA.

 

Texas Payday Law requires employers to pay salaried workers at least twice per month. Other employees must also be paid at least twice a month, and at regular intervals. Employers are also required to display labor law posters informing workers what day they will be paid, and how often.

No overtime law exists on the Texas law books. Employers are required to follow the federal standard of 1.5 times the usual hourly rate for all time over 40 hours worked in one week.

 

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