Texas Guide · Updated 2026

Texas Minimum Wage & Overtime

Texas wage-and-hour law is largely the federal floor — there is no state overtime statute and no daily overtime. 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. Retailemployers also owe one day of rest per 7-day 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 — federal withholding only.

This guide is general HR information, not legal advice, and doesn't replace legal counsel. Specifics should be tailored to your business and, for high-stakes or fact-specific matters, reviewed by a qualified Texas employment attorney.

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