You get a job in Texas, and you know that you are going to be making minimum wage. You see this job as a stepping stone. You certainly hope to earn more in the future, but this is where you are going to start and create some financial security for yourself.
Your question, then, is exactly how much your employer has to pay you under minimum wage laws. You know that the federal minimum wage is $7.25 per hour. Is that the amount that your employer in Texas is allowed to pay you?
Texas uses federal minimum wage
Yes, in most cases, an employer in Texas can pay just $7.25 per hour. This is because Texas itself has not set another minimum wage. It simply uses the federal wage.
This is much different than some other states. For instance, the minimum wage in Michigan is $12.48 per hour and the minimum wage in California is $16.50 per hour. In these states, private sector employers typically cannot pay the federal minimum because they are obligated to pay the higher of the two wages. Since the state minimum wage is higher, it takes precedence.
But in states like Texas, where a separate minimum wage has not been established, employers just have to follow federal guidance. So, your employer can legally pay you $7.25 per hour.
Wage and hour issues
It is important to understand how wages can be paid and how the law applies. For those who run into any wage and hour issues, it can be helpful to understand what legal steps to take.