Houston, TX Employment Preemption: Minimum Wage Preemption (2026)
Key Facts
- State Minimum Wage
- $7.25/hr (federal FLSA rate)
- Tipped Wage
- $2.13/hr (cash) + tips = $7.25
- Preemption Statute
- Tex. Lab. Code § 62.0515
- State Authority
- Tex. Lab. Code Ch. 62
- Local Higher Wage
- Not allowed for private employers
Summary
Houston cannot set its own minimum wage. Tex. Lab. Code § 62.0515 preempts municipalities from regulating private-sector wages, so Houston workers are paid the Texas Minimum Wage Act floor, which Tex. Lab. Code § 62.051 ties to the federal FLSA rate of $7.25/hour (unchanged since July 24, 2009). Tipped employees may be paid $2.13/hour direct wage when tips bring total compensation to $7.25/hour.
Sec. 62.051. MINIMUM WAGE. Except as provided by Section 62.057, an employer shall pay to each employee the federal minimum wage under Section 6, Fair Labor Standards Act of 1938. Sec. 62.0515. APPLICATION OF MINIMUM WAGE TO CERTAIN GOVERNMENTAL ENTITIES. (a) Except as otherwise provided by this section, the minimum wage provided by this chapter supersedes a wage established in an ordinance, order, or charter provision governing wages in private employment, other than wages under a public contract.(b) This section does not apply to any state or federal job training or workforce development program.(c) This section does not apply to a minimum wage established by a governmental entity that applies to a contract or agreement entered into by a governmental entity and a private entity.
Full Breakdown
Texas Labor Code Chapter 62 (the Texas Minimum Wage Act) sets the state floor by reference to the federal Fair Labor Standards Act ($7.25/hr since 2009). Section 62.0515 expressly preempts cities, counties, and other political subdivisions from adopting any private-employer minimum wage above the state rate. The City of Houston therefore has no general minimum wage ordinance for private employers. The city retains authority to set higher wages for its own municipal workforce and for contractors performing work directly for the City under a procurement contract, but cannot extend that floor to other private employers operating in Houston. The Texas Workforce Commission (TWC) administers and enforces the state Minimum Wage Act.
Violations & Fines
FLSA/Texas Minimum Wage Act violations are enforced by the U.S. Department of Labor Wage & Hour Division and by the Texas Workforce Commission. Employers who fail to pay $7.25/hour owe back wages plus, in willful cases, an equal amount in liquidated damages under 29 U.S.C. § 216(b). Civil penalties up to $1,100 per violation apply for repeat or willful violators. Workers may file a wage claim with TWC under Tex. Lab. Code Ch. 61 (Payday Law) within 180 days.
Frequently Asked Questions
Is the minimum wage higher in Houston than the rest of Texas?
Can Houston pass a $15 minimum wage ordinance?
What is the tipped minimum wage in Houston?
Sources & Official References
Other rules in Houston
Texas rules heatmap·Compare Houston to another location·View the Texas employment preemption overview
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