Texas minimum wage and tip laws (2026)

Texas does not set its own minimum wage above the federal rate, so the federal minimum of $7.25 an hour applies.

Minimum wage

$7.25

For a 40-hour week

$290.00

Source: 29 U.S.C. 206(a)(1) Read the rule

Employers in Texas can pay tipped workers a cash wage as low as $2.13 an hour and count up to $5.12 an hour of tips toward the $7.25 minimum. That is called a tip credit. Your cash wage plus the tips you keep must reach at least $7.25 for every hour in each workweek. If they do not, your employer has to make up the difference.

Tips can count toward the wage

Yes

Tipped cash wage

$2.13

Maximum tip credit

$5.12

Employer must tell you first

Yes

Source: 29 U.S.C. 203(m)(2)(A); 29 CFR 531.59 Read the rule

• Hours past 40 in a workweek are paid at 1.5 times your regular rate.

Overtime rate at minimum wage

$10.875

Overtime cash rate with a tip credit

$5.755

For tipped workers, overtime is figured on the full minimum wage, not the cash wage. At $7.25, that is $10.875 an hour, so with the full tip credit the overtime cash rate cannot be less than $5.755.

Source: 29 U.S.C. 207(a)(1); 29 CFR 778.107; Fact Sheet #15 (overtime for tipped employees is computed on the full minimum wage, not the cash wage) Read the rule

Texas does not require meal or rest breaks for adult workers, and neither does federal law. If your employer does give short breaks of 5 to 20 minutes, federal law says those minutes are paid.

Source: 29 CFR 785.18 and 785.19 (federal law does not require breaks; short breaks that are given must be paid) Read the rule

Taxes and deductions you agreed to, like health insurance, are normal. These are the ones that cause trouble in restaurants and bars, and what Texas allows:

Required uniforms

Only if pay stays above minimum

Register or cash shortages

Only if pay stays above minimum

Broken dishes or equipment

Only if pay stays above minimum

Card processing fee on card tips

Only if pay stays above minimum

Customers who walk out

Only if pay stays above minimum

"Only if pay stays above minimum" means the deduction cannot take your pay for the week below minimum wage. For a worker paid a tipped cash wage, that usually leaves no room for a uniform, shortage, breakage or walkout deduction. A card fee works differently: only the fee on the card tip itself, taken from that tip.

Source: 29 CFR 531.35 (wages must be paid free and clear); Fact Sheet #16; Fact Sheet #15 (credit card fee deduction limited to the fee actually charged and may not reduce pay below minimum wage) Read the rule

Managers and owners can share in the pool

No

Kitchen staff can share when a tip credit is taken

No

Kitchen staff can share when no tip credit is taken

Yes

In most states, an employer can require tipped staff to pool tips with others who serve customers, like bussers, runners and bartenders. Managers, supervisors and owners can never take a share. Under federal law, cooks and dishwashers can share only when the employer takes no tip credit, and some states do not allow it at all. The answers above show the rule in Texas.

Source: 29 U.S.C. 203(m)(2)(B); 29 CFR 531.54 Read the rule

Under federal law, a mandatory service charge, like an automatic 20% on large parties, is not a tip. It belongs to the business unless it is paid out, and when it is paid to you it counts as wages. It cannot be used to cover the tip credit, and it should not be reported as tips on your stub. Some states give the charge to the staff when customers were not clearly told it is not a tip, so if a charge was presented as a gratuity, it is worth asking where it went.

Source: 29 CFR 531.55 (a compulsory service charge is not a tip) Read the rule

Texas does not require paid sick leave statewide. Some employers offer it anyway, and in a few places a city or county law requires it.

Source: No federal paid sick leave requirement for private employers.

Some parts of Texas law depend on things a pay stub does not show. A TruWage result for Texas can be off if any of these apply to you:

• If your employer deducted for a shortage, breakage, uniform, or walkout without your written authorization, Texas does not allow it. This check only flags such deductions when they cut your pay below minimum wage.

Start with your manager or payroll and show them the numbers. Many mistakes get fixed that way. If it is not fixed, you can file a wage claim. It is free and you do not need a lawyer.

Agency

Texas Workforce Commission, Wage and Hour Department (Texas Payday Law)

Phone

800-832-9243

Texas has no state minimum wage, tip credit, overtime, or break rules beyond federal law, but it does have a state claim process. The Texas Payday Law (Tex. Lab. Code ch. 61) lets TWC collect unpaid wages, including unpaid minimum wage and overtime. A claim must be filed within 180 days after the wages were due. File online or by mail to TWC Wage and Hour Department, 101 E 15th St, Rm 514, Austin, TX 78778-0001 (fax 512-322-2885). Questions: 512-475-2670. Workers may also file with the federal Wage and Hour Division (1-866-487-9243).

How to file a wage claim

You can also file with the U.S. Department of Labor, Wage and Hour Division, which enforces federal wage law, at 1-866-487-9243. They take complaints in many languages and keep the name of the person complaining confidential.