Texas Labor Code Chapter 62 reserves minimum-wage authority to the state and ties Texas to the federal $7.25 floor. Austin cannot enact a higher private-sector minimum, though city contractors receive a higher living wage.
Texas Labor Code Chapter 62 sets the state minimum wage equal to the federal Fair Labor Standards Act rate, currently $7.25 per hour, and Section 62.0515 expressly preempts any municipal or county wage ordinance exceeding the state floor. Austin cannot impose a citywide private-employer minimum. The City of Austin sets a higher living wage for direct city employees and certain city service contractors through its annual budget and procurement rules, currently above $20 per hour, but this binds only the city's own workforce and contracts. Tipped workers earn $2.13 cash plus tips totaling $7.25. The Texas Workforce Commission handles state wage claims; federal FLSA enforcement runs through the U.S. Department of Labor Wage and Hour Division Austin Area Office.
FLSA violations expose employers to back-wage liability, an equal amount in liquidated damages, and federal civil penalties up to $1,000 per willful repeat violation. Tipped-wage shortfalls require employers to make up the difference to reach $7.25 per hour worked.
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See how Austin's minimum wage preemption rules stack up against other locations.
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