Texas Tipped Employee Wage Compliance

Tipped employee wage compliance procedures for Texas restaurants.

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What this document covers

Texas has specific rules for tipped employee compensation: $2.13/hr direct wage with tip credit (must total $7.25/hr with tips). This document covers tip credit calculations, tip pooling rules, required notices to employees, and record-keeping specific to Texas law.

Key sections included

State tipped minimum wage rate
Tip credit notice requirements
Tip pooling rules and restrictions
Tip credit calculation worksheet
Service charge vs tip distinctions
Record-keeping requirements
Employee acknowledgment forms

Frequently asked questions

What is the tipped minimum wage in Texas?

$2.13/hr direct wage with tip credit (must total $7.25/hr with tips).

Who can participate in a tip pool?

Under federal law, only employees who customarily receive tips can participate. Texas may have additional restrictions — check current state guidance.

Document details

State: Texas
Legal basis: Texas Labor Code; FLSA §3(m)
Enforced by: Texas Workforce Commission (TWC)
Penalty for absence: Back wages, liquidated damages, and penalties under Texas Labor Code. Class action risk for tip credit violations.
Category: Employment & HR

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