Business owners, organizations and corporations must stay updated and compliant with minimum wages in Texas to avoid any legal issues. Staying aware and updated helps to plan better for the future of business. Minimum wages in Texas are closely linked to the cost of living and inflation rate in Texas so everyone can afford a standard of living. These minimum wages increase annually based on the inflation rate in the economy and measured by the Consumer Price Index.Â
The minimum wage for all employees paid on an hourly basis in Texas is $7.25 per hour irrespective of company size. This amount is the same as the federal minimum wage rate in Texas. This wage rate applies to almost all the employees in Texas except some tipped employees, student workers and some exempted occupations. There is no concept of city-wise specific wage in Texas which adopts the Federal minimum wage. Those employees who earn $20 per hour as tips are classified as tipped employees in Texas.Â
Those employees who work over 40 hours per week are entitled to overtime pay which is at least 1.5 times of regular applicable minimum wage which is $10.88 per hour. In some states overtime pay is only paid when employees work for certain daily hours. Maximum overtime is not specified as per the Texas Law.  Â
In Texas, the minimum wage rate is revised as per the inflation rate of the state. Big businesses and corporations can tackle the rise in minimum wages but it becomes difficult for small business owners to tackle the rising minimum wage of employees.
To tackle the rising wages here are some ways they can consider:
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1. Right hiring- It is necessary to ensure that small businesses make the right hiring decisions. Replacing an employee costs a lot for the employer. Before hiring make sure that the employee is a good fit for your business. After completing the onboarding process it is necessary to maintain healthy relationships. Moreover, it is necessary to provide a clear path of growth and success to the employees so that they are likely to stay long with your business.
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2. Increase the price of product/service- One of the other ways to tackle the rising minimum wage is to increase the price of the product/service in which the business deals. But it’s necessary to stay with the market trends and the rise should be optimal.
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3. Recheck your expenses- Before making hiring decisions it’s necessary to recheck the financial statements of the business. Sometimes hiring temporary or contractual employees proves to be less costly as compared to hiring full-time employees.
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Using the above methods small businesses can tackle the increase in minimum wages up to some extent.Â
The minimum wage in Texas in 2024 is $7.25 per hour.
Full-time high school students and part-time college students are paid a minimum wage of $6.16 per hour in Texas
An employee under the age of 20 must get a minimum of $4.25 per hour as training wage for the first 90 days of employment in Texas