Will the minimum wage in Texas go up in 2025?
Several states across the country will raise their minimum wage next year. Will Texas be among the ones which will do so? Here’s what to expect.
Several states across the United States will be raising their minimum wages next year. Some of them are tying their increases to the cost of living to keep up with inflation, while others have laws that provide for automatic increases.
States that raise salaries each year have a base wage higher than the federal rate, which has stayed at $7.25 per hour since 2009. This is the longest period without an increase since the minimum wage was enacted in 1938. What is the case in Texas?
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Will the minimum wage in Texas go up in 2025?
Texas is one of 20 states in the country that adopt the federal minimum wage. However, the Texas Minimum Wage Law does not prohibit employees from collectively bargaining with their employers for a higher wage.
Meanwhile, tipped employees must be paid a minimum wage of $2.13 per hour, known as cash wages. This salary is combined with tips to reach the federal minimum wage of $7.25 per hour. If an employee’s wage (at least $2.13 per hour) plus tips is less than $7.25 per hour, the employer must make up the difference.
Currently, no bills have been passed to increase the minimum wage in Texas, so the $7.25 per hour rate will continue into 2025.
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States that have minimum wages higher than the federal rate
Currently, 30 states, plus the District of Columbia, have adopted wages above the federal minimum. Here are their respective wages for 2024, although in some places an increase is expected in 2025:
- Alaska: $11.73
- Arizona: $14.35
- Arkansas: $11
- California: $16
- Colorado: $14.42
- Connecticut: $15.59
- South Dakota: $11.20
- Delaware: $13.25
- Florida: $13
- Hawaii: $14
- Illinois: $14
- Maine: $14.15
- Maryland: $15
- Massachusetts: $15.50
- Michigan: $10.33
- Minnesota: $10.85 for large employers and $8.85 for small employers
- Missouri: $12.30
- Montana: $10.30
- Nebraska: $12
- Nevada: $12
- New Jersey: $15.13
- New York: $16 for New York City, Long Island and Westchester. In the rest of the state it is $15
- New Mexico: $12
- Ohio: $10.45
- Oregon: $14.70
- Rhode Island : $14
- Vermont: $13.67
- West Virginia: $10
- Virginia: $12
- Washington: $16.28
Five states have not legislatively adopted a state minimum wage. These are Alabama, Louisiana, Mississippi, South Carolina, and Tennessee, where the federal minimum applies. Georgia and Wyoming have minimum salaries below the national minimum wage, but the federal rate of $7.25 is applied.
These states have adopted the federal minimum wage of $7.25 per hour as the state minimum: North Carolina, North Dakota, Idaho, Indiana, Iowa, Kansas, Kentucky, New Hampshire, Oklahoma, Pennsylvania, Texas, Utah, and Wisconsin.