What is the minimum wage in Austin, Texas?

Austin follows the Texas state minimum wage, which matches the federal floor of $7.25 per hour. Texas has not set a higher state minimum and cities are preempted from raising it, so $7.25 is the binding rate for most private employers.

How is overtime calculated?

Under the federal FLSA, non-exempt employees earn 1.5x their regular rate for every hour over 40 in a workweek. The tool pays the first 40 hours at your base rate and any extra hours at 1.5x, then sums them for weekly gross pay.

What is the tipped minimum wage in Texas?

Texas allows a tipped cash wage of $2.13 per hour as long as tips bring the worker to at least $7.25 per hour overall. If wage plus tips falls short, the employer must make up the difference — the tool calculates that shortfall for you.

Does overtime apply to tipped workers?

Yes. Tipped employees still earn overtime, calculated on the full $7.25 minimum (not the $2.13 cash wage), then reduced by the allowable tip credit. The tool uses the full-minimum basis so the overtime premium is correct.

Are there exemptions to overtime?

Yes — salaried executive, administrative, professional and certain other roles can be exempt from FLSA overtime if they meet duties and salary tests. This calculator models non-exempt hourly pay, so do not apply it to exempt salaried positions.

Austin Minimum Wage & Overtime Calculator

The Austin Minimum Wage & Overtime Calculator computes weekly gross pay at the Texas $7.25/hr minimum, with FLSA overtime at 1.5x for hours over 40, and handles the trickier tipped-worker rules. Texas follows the federal floor and bars cities from raising it, so $7.25 is the binding rate across Austin for most private employers. Tipped staff can be paid a $2.13 cash wage as long as tips lift them to the full minimum — and this tool checks that.

How it works

Pay splits at 40 hours. Regular pay covers the first 40 hours: min(hours, 40) x rate. Overtime covers the rest at time-and-a-half: max(hours - 40, 0) x rate x 1.5. Weekly gross is the sum.

For tipped workers the employer may pay a $2.13 cash wage and claim a tip credit up to $7.25 - $2.13 = $5.12 per hour. The tool checks the total: if cash wage + tips per hour < $7.25, the employer owes the shortfall so the worker still reaches the full minimum. Overtime for tipped staff is computed on the full $7.25 basis (not $2.13), then the tip credit is applied — the method the FLSA requires.

Tips and example

Forty-five hours at $7.25: regular pay is 40 x $7.25 = $290; overtime is 5 x $7.25 x 1.5 = $54.38; weekly gross is $344.38.

A tipped server paid $2.13 for 40 hours who earns $200 in tips makes $85.20 + $200 = $285.20, above the $290 full-minimum benchmark for 40 hours — wait, it is below, so the employer must add the $4.80 shortfall. The tool surfaces exactly that gap.

This models non-exempt hourly work only — do not apply it to exempt salaried roles.