As the cost of living continues to rise across the United States, several states are preparing to increase their minimum wages in 2025. Some of these adjustments are tied to inflation, while others follow state laws that mandate automatic increases. This article explores the current landscape of minimum wage laws, with a particular focus on Texas.
The Status of Minimum Wage in Texas
This Article Includes
Texas is one of the 20 states that adhere to the federal minimum wage, which has been set at $7.25 per hour since 2009—the longest period without an increase since the minimum wage was established in 1938. Despite numerous discussions surrounding wage increases, no legislative changes have been made, meaning that Texas will maintain its current minimum wage into 2025.
Collective Bargaining Rights
Under the Texas Minimum Wage Law, employees have the right to engage in collective bargaining with their employers for higher wages. This allows workers to negotiate better pay and benefits, but it does not guarantee an increase in the state’s minimum wage.
Tipped Employees
In Texas, tipped employees are subject to a different wage structure. These workers must receive a minimum cash wage of $2.13 per hour. This amount, combined with tips, should meet or exceed the federal minimum wage of $7.25 per hour. If an employee’s earnings (cash wage plus tips) fall short of this amount, the employer is responsible for compensating the difference.
Minimum Wage Increases in Other States
While Texas remains stagnant, many states are set to raise their minimum wages above the federal standard. Currently, 30 states and the District of Columbia have enacted minimum wages higher than $7.25 per hour. Here’s a look at some of the notable increases scheduled for 2024:
Alaska – $11.73
Arizona – $14.35
Arkansas – $11.00
California – $16.00
Colorado – $14.42
Connecticut – $15.59
Delaware – $13.25
Florida – $13.00
Hawaii – $14.00
Illinois – $14.00
Maine – $14.15
Maryland – $15.00
Massachusetts – $15.50
Michigan – $10.33
Minnesota – $10.85 (large employers), $8.85 (small employers)
Missouri – $12.30
Montana – $10.30
Nebraska – $12.00
Nevada – $12.00
New Jersey – $15.13
New York – $16.00 (NYC, Long Island, and Westchester), $15.00 (rest of the state)
New Mexico – $12.00
Ohio – $10.45
Oregon – $14.70
Rhode Island – $14.00
Vermont – $13.67
Virginia – $12.00
Washington – $16.28
These states have recognized the need for higher wages to meet the rising costs of living and to support their workers.
States Without a Minimum Wage Law
In contrast, five states—Alabama, Louisiana, Mississippi, South Carolina, and Tennessee—have not legislated a state minimum wage, relying solely on the federal rate. Additionally, Georgia and Wyoming have minimum wages that fall below the federal minimum, but the federal rate of $7.25 applies in those states.
Conclusion
As 2025 approaches, the disparity in minimum wage laws across the United States highlights the varied approaches states take to address wage issues. While some states are proactive in increasing wages to keep pace with inflation, Texas will remain at the federal minimum wage of $7.25 unless new legislation is introduced. The ongoing debate surrounding minimum wage increases continues to be a pivotal issue for workers, employers, and policymakers alike.