Thursday, July 24, 2008

Texas Minimum Wage Increased

The Texas minimum wage has increased from $5.85 per hour to $6.55 per hour on July 24, 2008 with reference to the federal minimum wage increase. Under the Fair Minimum Wage Act of 1007, the deferal minimum wage was scheduled to increase the minimum wage by three steps. Each increase is 70 cents.

There are also a number of other states increasing the minimum wage by reference to the deferal minimum wage, including Maryland, South Dakota, Virginia Idaho and Oklahoma.

In Texas, there is no overtime law at the state level. Instead, most employees in Texas are entitled to 1.5 times their usual mniimum wage rate of pay after working 40 hours under the federal law.

The Texas minimum wage specifically excludes any employee covered by the primary federal minimum wage law - Fair Labor Standards Act (FLSA). The FLSA applies to employers who engage in interstate commerce, as well as those with revenue of at least $500,000.

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