The federal minimum wage will increase by 70 cents on July 24, 2009 from $6.55 to $7.25 per hour. The increase is the third increase mandated by the Fair Minimum Wage Act of 2007.
Under Texas law, the state minimum wage must be at least as high as the federal minimum, which means that when the federal minimum wage increases, the Texas minimum increases, too.
Therefore, on July 24, 2009, when the federal minimum increases to $7.25 per hour, the Texas state minimum will also increase to $7.25 per hour. Texas is one of 12 states, including Maryland, Idaho, North Dakota and Virginia, which ties its minimum to the federal minimum wage.
The US Department of Labor reports that the Texas minimum wage statute doesn’t even state a dollar amount, simply that the state adopts the federal rate.
Under Texas minimum wage law, any employee covered by the Fair Labor Standards Act (FLSA) is excluded from Texas minimum wage. The FLSA is the main federal minimum wage law and covers employers that engage in interstate commerce and those with annual earnings of $500,000 or more.
An article in Texas Business Today (a publication of the Texas Workforce Commission) states that it is almost impossible for a business today not to engage in interstate commerce. With the widespread use of the Internet, accepting credit cards and using emails, nearly every company deals in interstate commerce. These companies, therefore, are covered under FLSA.
The Texas Payday Law requires employees to pay exempt salaried employees at least once a month. Texas companies must pay all other workers at regular intervals at least twice a month. All businesses are mandated by law to display a poster with specific information regarding the interval of their payday and what day wages will be paid.
There is no overtime law on the Texas law books. Instead, Texas workers are covered under federal law. Any Texas worker who puts in more than 40 hours in one week is entitled to overtime pay at 1.5 times his or her usual hourly rate.
