The minimum wage in Texas is so low because state law pegs it to the federal rate of $7.25 an hour, Congress has not raised that federal rate since July 2009, and Texas blocks cities and counties from setting anything higher on their own. There is also no built-in inflation adjustment, so the number stays frozen until either Washington or the Texas Legislature votes to change it.
Texas Adopts the Federal Rate Instead of Setting Its Own
The core reason sits in Chapter 62 of the Texas Labor Code. Section 62.051 requires every covered employer to pay at least the federal minimum wage set under the Fair Labor Standards Act.1State of Texas. Texas Labor Code Section 62.051 – Minimum Wage The statute does not pick a dollar figure of its own. It mirrors whatever Washington has chosen.
That design decision has consequences. Texas has no independent wage board, no state formula, and no mechanism that would let the state rate drift away from the federal one. The Texas Workforce Commission describes the state’s approach as adopting the federal minimum wage rate directly.2Texas Workforce Commission. Texas Minimum Wage Law Any increase has to come from Congress amending the federal statute or from the Texas Legislature rewriting Section 62.051.
Most of the country has gone a different direction. As of early 2026, 34 states, territories, and the District of Columbia have minimum wages above $7.25, each one set through independent state or local legislation.3U.S. Department of Labor. State Minimum Wage Laws Texas is in the shrinking group that still matches the federal floor exactly.
The Federal Floor Has Been Frozen Since 2009
Because Texas defers to the federal number, the actual $7.25 figure traces back to the Fair Labor Standards Act at 29 U.S.C. § 206. Congress amended that section in 2007, phasing in step increases that reached $7.25 per hour in July 2009.4Office of the Law Revision Counsel. 29 USC 206 – Minimum Wage That was the last federal increase.
Various proposals have been introduced in the years since, with figures ranging from roughly $10 to $15 per hour. None have passed both chambers. For a worker in Texas, that congressional stalemate is the single biggest reason the paycheck math has not changed in over 16 years. The state rate is downstream of the federal rate, and the federal rate has not moved.
Cities Can’t Raise It Either
It might seem natural for Austin, Dallas, Houston, or San Antonio to set a higher local wage given the cost of living in those metros. State law forbids it. Section 62.0515 of the Texas Labor Code bars local governments from requiring private employers to pay more than the state minimum, whether through an ordinance or a contract.5State of Texas. Texas Labor Code Section 62.0515 – Application of Minimum Wage to Certain Governmental Entities
The preemption creates a single wage floor from the Panhandle to the Gulf Coast. A worker in a small rural town and a worker in downtown Houston are legally entitled to the same $7.25, even though their rent and grocery bills look nothing alike. Any city council that tried to require higher pay from private employers would run straight into the state statute.
No Automatic Inflation Adjustment
About 20 states tie their minimum wage to the Consumer Price Index or a similar measure, so the floor rises automatically as prices rise. Texas has no such trigger. The $7.25 figure is static, and nothing in the Texas Labor Code recalculates it when the cost of living changes.1State of Texas. Texas Labor Code Section 62.051 – Minimum Wage
The only path to an increase is the ordinary legislative one: a bill passed by both the Texas House and Senate and signed by the governor.6Texas Legislature Online. How to Follow a Bill Using TLO Without that, or a change at the federal level, the number stays where it is while the purchasing power behind it keeps shrinking.
Where the Rate Can Be Even Lower
$7.25 is the top of the floor for most workers, but federal law allows several groups to be paid less, and because Texas adopts the federal framework, those lower rates are legal here too.
Tipped employees can be paid a cash wage as low as $2.13 per hour, as long as their tips bring total hourly earnings up to at least $7.25.7U.S. Department of Labor. Minimum Wages for Tipped Employees Before taking that tip credit, the employer must tell the worker in advance about the cash wage, the credit being claimed, and the worker’s right to keep all tips outside of a valid tip pool.8eCFR. 29 CFR 531.59 – The Tip Wage Credit If tips plus cash wage fall short of $7.25 in a given workweek, the employer has to make up the difference.
- Workers under 20 can be paid a youth minimum wage of $4.25 per hour during their first 90 consecutive calendar days with an employer. The clock counts every calendar day, not just days actually worked, and the regular rate takes over when the 90 days run out or the employee turns 20, whichever comes first.9U.S. Department of Labor. Fact Sheet #32 – Youth Minimum Wage – Fair Labor Standards Act
- Full-time students working for certain retail stores, farms, or universities can be paid no less than 85 percent of the minimum wage if the employer holds a federal certificate authorizing it.10eCFR. 29 CFR 519.5 – Conditions Governing Issuance of Full-Time Student Certificates
- Workers whose disabilities reduce their productivity for a specific job can be paid below the minimum wage under Section 14(c) of the FLSA, but only if the employer holds a special certificate from the Department of Labor’s Wage and Hour Division. The rate has to be proportional to the worker’s productivity against non-disabled workers doing the same job, and it must be reviewed at least every six months.11U.S. Department of Labor. Fact Sheet #39 – The Employment of Workers With Disabilities at Subminimum Wages
Each of these carve-outs comes with conditions. An employer cannot simply decide to pay less; certificates, notices, and reviews are required, and the employer carries the burden of proving the exception applies.
If You’re Being Paid Less Than You’re Owed
If you believe your paycheck falls below the legal minimum, you have two tracks.
At the state level, the Texas Workforce Commission takes wage claims through an online application or a paper form. You must file within 180 days of the date the wages were originally due.12Texas Workforce Commission. Texas Payday Law – Wage Claim Keep records of the hours you worked and what you were actually paid; those are the backbone of a successful claim.
At the federal level, you can bring an FLSA claim in state or federal court. The statute of limitations is two years from the violation, or three years if the violation was willful.13Office of the Law Revision Counsel. 29 USC 255 – Statute of Limitations Under 29 U.S.C. § 216, an employer who underpays the minimum wage owes the unpaid wages plus an equal amount in liquidated damages, and the court can order the employer to cover your attorney’s fees.14Office of the Law Revision Counsel. 29 USC 216 – Penalties Retaliation against a worker for filing a wage claim is itself a separate federal violation.