Texas wage-and-hour law is largely the federal floor — there is no state overtime statute and no daily overtime. The Texas Minimum Wage Act says so itself: Tex. Lab. Code § 62.151 makes the chapter inapplicable to any person covered by the FLSA, so for most Texas employees the federal rules are the only rules. Knowing what is "just the FLSA" is half the battle.
Minimum wage: $7.25/hour
The Texas Minimum Wage Act adopts the federal rate of $7.25/hour (Tex. Labor Code ch. 62). Texas preempts local minimum wages, so cities cannot set their own. Tipped employees follow the federal tip credit ($2.13 cash + tips up to $7.25).
Overtime: FLSA only
Texas has no state overtime law — the federal FLSA governs entirely: 1.5× the regular rate after 40 hours in a workweek, with no daily overtime. Exemptions follow the federal white-collar duties tests and the $684/week ($35,568/yr) salary level (29 U.S.C. § 207; 29 C.F.R. Part 541).
Breaks
Texas has no state meal- or rest-break law for adults. Under the FLSA, short paid breaks (typically 5–20 minutes) count as hours worked; bona fide meal periods (usually 30+ minutes, fully relieved of duty) do not. Retail employers also owe each employee at least 24 consecutive hours off for rest or worship in every 7-day period, on top of the regular daily rest — unless the employee is part-time and works 30 hours or less for them in a calendar week (Tex. Labor Code § 52.001).
Practical takeaways
Classify exempt vs. non-exempt under the federal tests, track all hours for non-exempt staff, fold nondiscretionary bonuses into the regular rate, and remember there is no state income tax — the Texas Constitution forbids one (Tex. Const. art. VIII, § 24-a), so federal withholding only.
Need help with this?
Our HR Assistant gives cited Texas HR answers in seconds, backed by 45+ years of hands-on HR experience.