Texas minimum wage remains at federal rate amid housing affordability challenges

Texas continues to follow the federal minimum wage of $7.25 per hour, a rate that has remained unchanged since July 2009. Because the state does not establish a higher independent minimum wage, the rate fluctuates only if Congress adjusts the federal standard under the Fair Labor Standards Act.

Specific wage rules apply to certain sectors in the state. Tipped employees may receive a direct cash wage of $2.13 per hour, provided their tips bring total earnings to at least the minimum requirement. Additionally, eligible workers under age 20 may be paid a training wage of $4.25 per hour during their first 90 days of employment.

Recent research highlights the economic strain caused by stagnant wages in relation to rising living costs. A study by Best Interest Financial found that in cities like Dallas and Austin, a full-time worker earning the minimum wage cannot afford a typical one-bedroom apartment. In Dallas, average one-bedroom rents consume approximately 142% of the monthly gross income for a minimum wage worker, while in Austin, the cost represents about 135% of that income.