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Texas Tipped Minimum Wage Laws for 2016, 2017. Texas' normal state minimum wage rate is $7.25 per hour. Texas labor law allows tipped employees to be paid a lower cash wage than the standard Texas minimum wage by their employers, as up to $5.12 in tips earned per hour can be deducted from their wage as a Tip Credit.
Many states and some cities have wage and hour laws as well. These laws govern issues such as minimum wage, overtime, and meal breaks. The governing bodies in several urban areas throughout the country have voted to create a âliving wageâ on top of the FLSA and state standards. The current federal minimum wage is $7.25 per hour.