Texas doesn't have a minimum wage for salaried employees that's different from its hourly minimum wage. This means that there's no separate minimum wage for salaried positions. The federal minimum wage applies to all employees in Texas who are not otherwise covered by state laws or collective bargaining agreements.
This can be confusing, as many people associate salaried positions with higher pay. However, the legal minimum pay is the same whether an employee is paid hourly or receives a salary. The difference lies in how the pay is calculated and structured, not in a different minimum wage standard.
What is the Federal Minimum Wage in Texas?
The federal minimum wage is $7.25 per hour. This applies to all Texas employees, whether they are salaried or paid hourly, unless a higher minimum wage is mandated by state or local laws, or a collective bargaining agreement.
It's crucial to understand that while an employee might be classified as "salaried," their annual salary must still translate to at least the federal minimum wage when considering their hours worked. If their salary doesn't meet this standard, their employer is violating federal law.
Are There Any Exceptions to the Minimum Wage in Texas?
There are some limited exceptions to the federal minimum wage, but these generally relate to specific employee categories and not to a salaried versus hourly distinction. These exceptions might include:
- Tipped employees: Employees who receive tips may have a lower minimum wage, but the employer is still obligated to ensure their total compensation (wage plus tips) meets the minimum wage requirements.
- Certain apprentices or trainees: Under specific conditions and regulations, apprentices and trainees might be paid less than the minimum wage.
- Individuals with disabilities: Certain individuals with disabilities working under special programs might be subject to different wage standards.
These exceptions are very narrowly defined and are governed by strict federal regulations.
How is Salary Calculated for Salaried Employees in Texas?
A salaried employee's pay is usually based on an annual amount, which is then typically divided into equal payments distributed over the year (e.g., bi-weekly or monthly paychecks). However, the employer must still ensure this annual salary equates to at least the federal minimum wage when calculated based on the number of hours worked. Employers frequently use a simplified calculation that assumes a certain number of hours worked per week or per year. This should always align with the actual hours worked.
For example, a salaried employee working 40 hours per week, 52 weeks a year, should earn at least $15,080 annually ($7.25/hour x 40 hours/week x 52 weeks/year) to comply with the minimum wage law.
What if My Salary is Below Minimum Wage?
If you believe your salary, when calculated per hour worked, is below the federal minimum wage of $7.25, you should first review your employment contract and any applicable collective bargaining agreements. If you still feel your employer is violating minimum wage laws, you should contact the U.S. Department of Labor's Wage and Hour Division. They can investigate your claim and take appropriate action.
What about State Laws?
As mentioned earlier, Texas does not have a state minimum wage that exceeds the federal minimum wage. Therefore, the federal minimum wage of $7.25 per hour applies across the board.
Remember, this information is for general guidance only and should not be considered legal advice. If you have specific questions about your employment situation or believe your employer is violating minimum wage laws, seek advice from a qualified employment lawyer or contact the U.S. Department of Labor.
