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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.
The last time Texas raised its minimum wage was in 2009, when it was forced to by a change in the federal standard. In contrast, after receiving a pay raise in 2009, Texas legislators received another raise in early 2015, and members of the Texas Legislature became eligible for large pensions. House Bills 924 and 937 aim to return the favor to constituents by raising the minimum wage to $10.10. It is a necessary step that has become mired in a quagmire of Texas state politics. The largest raise in the minimum wage was enacted by President George W. Bush in 2007, a 70 cent hike to $5.85 from the 1997 rate of $5.15. However, when accounted for inflation, the strength of the new wage rate was still lower than the minimum wage in 1997 ($7.30 vs $7.08).