The Federal Minimum Wage Increase and Texas (2024)

FAQs

The Federal Minimum Wage Increase and Texas? ›

The current Texas minimum wage is $7.25 per hour, which is the minimum rate a non-exempt employee in the state of Texas gets paid legally by the hour. This rate is in line with the federal minimum wage. Texas has not raised its state minimum wage since 2009, when it was raised $0.70 from $6.55 to $7.25.

The year 2024 brings significant attention to wage laws as economic conditions and legislative pressures drive discussions on wage adjustments. While the Texas state minimum wage remains at $7.25 per hour, several local initiatives and proposals aim to increase minimum wages in specific cities and sectors.

U.S. minimum wage 2024, by state. The federally mandated minimum wage in the United States is 7.25 U.S. dollars per hour, although the minimum wage varies from state to state. As of January 1, 2024, the District of Columbia had the highest minimum wage in the U.S., at 17 U.S. dollars per hour.

The federal minimum hourly wage is just $7.25 and has not increased since 2009. The Raise the Wage Act of 2021, introduced in the U.S. House of Representatives on January 26, 2021, would gradually raise the federal minimum wage to $15 an hour by 2025.

The Biden Administration has worked to reverse these trends, providing federal employees a 4.6 percent pay raise in 2023 and a 5.2 percent raise in 2024. Nonetheless, federal employee pay increases have failed to keep pace with rising labor and living costs.

According to legislative staff, 72 percent of state employees make $60,000 or less each year. If you make $60,000 a year or more, you will receive 5% percent raise on September 1, 2023, and another 5% pay raise on September 1, 2024.

Texas has not raised its state minimum wage since 2009, when it was raised $0.70 from $6.55 to $7.25. Although 22 U.S. states are receiving raises in 2024, Texas is among the states that have not passed legislation to increase the minimum wage from the federal base of $7.25.

The Raise the Wage Act of 2021 (HR 603) would increase the federal minimum wage in five annual steps, from $7.25 to $15 in 2025, with annual increases thereafter indexed to the median wage.

Two states, Georgia and Wyoming, have a minimum wage below $7.25 per hour.

Why is the Texas minimum wage so low? ›

Texas doesn't have its distinct minimum wage; it aligns with federal standards. The state last updated this rate in 2008, raising it from $6.55 to $7.25 per hour. And, similar to other states, the Texas minimum wage rate is tied to the Consumer Price Index, so it adjusts with inflation over time.

“Most of us can't do the math in our heads. If we could, we'd realize that $15 an hour amounts to only $31,200 a year, assuming full-time work—about half of the U.S. median income and a painfully small amount for living and raising children in most American cities.” It can be painfully small outside of cities, too.

If the state or local minimum wage is lower than the federal minimum wage, you must pay your employees at least the federal minimum wage rate.

Jan. 18, 2024, at 2:00 p.m. NEW YORK (AP) — Walmart Inc. is raising the starting base pay for store managers, while redesigning its bonus plan that will put more of an emphasis on profits for these leaders. The moves, announced Thursday, will be effective Feb.

Millions of workers nationwide could be in line for a pay hike next year, with half of U.S. states planning to boost their minimum wages in 2024. The increases will boost the baseline pay to at least $16 an hour in three states: California, New York and Washington.

Texas has not raised its state minimum wage since 2009, when it was raised $0.70 from $6.55 to $7.25. Although 22 U.S. states are receiving raises in 2024, Texas is among the states that have not passed legislation to increase the minimum wage from the federal base of $7.25.

How much does a Hourly make in Texas? As of Sep 10, 2024, the average hourly pay for a Hourly in Texas is $22.71 an hour. While ZipRecruiter is seeing salaries as high as $39.42 and as low as $15.90, the majority of Hourly salaries currently range between $23.27 (25th percentile) to $25.96 (75th percentile) in Texas.

Texas's current budget

Texas enacted its FY 2024-2025 biennial budget in June 2023. The budget reported $144 billion in general fund spending and $321.3 billion in total spending over the two-year period, an increase of 11 and 6 percent over the previously enacted biennial budget, respectively.