Texas Statewide Rule

Texas Minimum Wage Preemption State Standard

Few RestrictionsApplies statewide across Texas (2026)

Texas Labor Code Section 62.0515 expressly preempts municipal and county minimum wage ordinances. The state minimum wage equals the federal floor of $7.25 per hour, and political subdivisions cannot require private employers to pay more, except for their own contracts.

Key Facts

Statute: Labor Code 62.0515
State Minimum: $7.25/hour
City Employees Exception: Permitted
Reinforced By: HB 2127

Source: Texas Statutes

Full Breakdown

Section 62.0515 of the Texas Minimum Wage Act provides that the minimum wage in this state supersedes a wage established in an ordinance, order, or charter provision governing wages in private employment. Cities such as Austin, Houston, and San Antonio cannot mandate higher minimum wages on private employers within their jurisdictions. Limited exceptions allow local governments to set wage floors for their own employees and direct contractors. HB 2127 (2023) reinforces this preemption by occupying the field of labor regulation. The state minimum wage tracks the federal Fair Labor Standards Act rate of $7.25/hour under Labor Code 62.051.

Violations & Penalties

Local private-sector minimum wage ordinances are unenforceable and subject to declaratory judgment; HB 2127 also provides for civil penalties and trade association standing.

Frequently Asked Questions

Can Austin or Houston set a $15 minimum wage?

Not for private employers. Cities can set higher wages for their own city employees and contractors but cannot mandate it for private businesses operating within city limits.

Does Texas have its own minimum wage above federal?

No. Texas Labor Code 62.051 ties the state minimum wage to the federal Fair Labor Standards Act rate, currently $7.25 per hour, with no automatic state increases.

Can cities require living wage for contractors?

Yes for direct city contracts and city employees, but not for private employers generally. Some cities use procurement preferences to encourage higher wages.

Sources

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Texas Minimum Wage Preemption State Standard

Few RestrictionsApplies statewide across Texas (2026)

Full Breakdown

Frequently Asked Questions

Can Austin or Houston set a $15 minimum wage?

Not for private employers. Cities can set higher wages for their own city employees and contractors but cannot mandate it for private businesses operating within city limits.

Does Texas have its own minimum wage above federal?

No. Texas Labor Code 62.051 ties the state minimum wage to the federal Fair Labor Standards Act rate, currently $7.25 per hour, with no automatic state increases.

Can cities require living wage for contractors?

Yes for direct city contracts and city employees, but not for private employers generally. Some cities use procurement preferences to encourage higher wages.