labor lawAdivision of labor law center

The federal minimum wage will increase by 70 cents on July 24, 2009 from $6.55 to $7.25 per hour. The increase is the third increase mandated by the Fair Minimum Wage Act of 2007.

Under Texas law, the state minimum wage must be at least as high as the federal minimum, which means that when the federal minimum wage increases, the Texas minimum increases, too.

Therefore, on July 24, 2009, when the federal minimum increases to $7.25 per hour, the Texas state minimum will also increase to $7.25 per hour. Texas is one of 12 states, including Maryland, Idaho, North Dakota and Virginia, which ties its minimum to the federal minimum wage.

The US Department of Labor reports that the Texas minimum wage statute doesn’t even state a dollar amount, simply that the state adopts the federal rate.

Under Texas minimum wage law, any employee covered by the Fair Labor Standards Act (FLSA) is excluded from Texas minimum wage. The FLSA is the main federal minimum wage law and covers employers that engage in interstate commerce and those with annual earnings of $500,000 or more.

An article in Texas Business Today (more…)

On September 24, the U.S. Department of Labor announced a grant of more than $15 million to Texas in the wake of Hurricane Ike. Of the total grant, $7.9 million will be released initially. The balance will be released as the state demonstrates a continued need for disaster assistance.

“This $15.9 million National Emergency Grant  will put several hundred Texans to work helping communities recover from Hurricane Ike damage,” said Secretary of Labor Elaine L. Chao. “This grant will also fund humanitarian assistance such as food, clothing, shelter and other critical aid that Texans affected by the hurricane devastation are in need of.”

The grant, totaling $15,883,200 will be used to (more…)

The U.S. Department of Labor announced a $7,350,171 grant to Texas employers to create approximately 475 temporary jobs to assist in cleanup and recovery efforts as a result of Hurricane Dolly.

Dolly, a category 2 hurricane, struck the Texas Gulf Coast on July 24, 2008. The storm left inches of rain in its wake. More than 175, 000 residents were still without power a day later, and damages were estimated at $750 million.   Dolly also affected portions of Mexico and other Gulf Coast regions.

“This $7.4 million grant will provide Texans with temporary jobs assisting in disaster relief and clean-up efforts to help communities recover from Hurricane Dolly damage,” said Secretary of Labor Elaine L. Chao.

On July 24, (more…)

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.

 On July 24, 2008 the Texas minimum wage increased by 70 cents from $5.85 to $6.55 per hour when the federal minimum wage changes.

Under Chapter 62 of the Texas Labor Code, known as the Texas Minimum Wage Act, the state minimum wage mirrors the federal minimum wage.  On May 24, 2007 President Bush signed the Fair Minimum Wage Act of 2007 into law. That federal act provided for annual 70-cent increases in the minimum wage. The current increase is the second of three under the law. The federal (and Texas) minimum wage will increase again on July 24, 2009.

According to the Texas Workforce Commission or TWC, Chapter 62 also requires employers (more…)