Tips
Texas Minimum Wage
As of July 24, 2009, the Texas minimum wage was increased from $6.55 an hour to $7.25 an hour. Chapter
62 of the Texas Labor code in the Texas Minimum Wage Act requires employers to provide employees with
documentation containing information regarding the employee's pay.
Tipped Employees
A “tipped employee” often receives $30 a month or more in tips at his or her place of work. Employers
are required to pay $2.13 an hour directly if the amount plus tips matches the federal minimum wage.
If earned tips combined with the direct wage do not equal $7.25 an hour, the employer must pay the difference.
Youth Minimum Wage
The Fair Labor Standards Act permits employers to pay a youth minimum wage of $4.25 or more an hour
to employees under 20 years of age in the duration of the first 90 successive calendar days after employment
start.
Retention of Tips
Under no arrangement between employer and tipped employee can any part of the tip earnings become the
employer's property. All tip earnings are strictly property of the tipped employee (or employees with
who tip sharing is legal).
Credit Card Tips
The employer must pay the tipped employee less the percentage for tips charged via credit card where
the employer must pay a credit card percentage on each sale. This charge cannot reduce the wage below
the federal minimum wage. The employee must be paid the amount no later than the regular pay day.
Contact Us
If you work for tips and feel you are the victim of a breach in tipped wage earnings, contact the
Houston employment lawyers of the Ross Law Group today at 713-482-6910.