Texas · Wages · Updated April 2026

No Texas city can set a higher minimum wage. State law preempts every attempt.

Texas Labor Code § 62.0515 explicitly bars municipalities and counties from adopting minimum wages above the state/federal floor. Austin, Dallas, San Antonio, and Houston have all attempted local wage and benefit ordinances over the past decade. Every attempt has been struck down, rendered unenforceable, or limited to government contracts. The practical floor across Texas is the $7.25 federal/state rate — period.

Authority
TX Lab. § 62.0515
City Floors
All preempted
Adopted
2003 Legislature
Active

Local Wage Preemption

Confirms there are no enforceable city or county minimum wage rates in Texas private-sector employment. The state floor controls statewide.

Surface preemption status to operators by city
Always running

What the rule does as Texas operators ask about local rates.

The hero card configuration: Flag on operator-facing preemption status. There's no shift-time enforcement — the rule is informational, not blocking.

Flag · on local-rate inquiries

When an operator asks about a city-specific Texas minimum wage in the dashboard ("does Austin have its own minimum?"), Teambridge surfaces the preemption explanation: "Texas preempts city minimums. The $7.25 state floor applies."

Skip the configuration

Deploy Texas wage routing in your Teambridge.

Tell us about your Texas operations. We'll spin up the single-floor wage routing alongside 13 other Texas policies in a sandbox tenant.

Or book a 30-min walkthrough. We respond within 4 business hours.

The rule, plainly stated

Statewide preemption, narrow government-contract carve-out.

Section 62.0515 was adopted in 2003 to prevent the patchwork of local minimums that exists in California, New York, and Colorado. It applies to private-sector employment broadly — but a narrow exception remains for city contracts and prevailing-wage requirements.

Texas Labor Code § 62.0515: A municipality or county may not adopt, enforce, or maintain an ordinance, order, or rule that establishes a minimum wage that an employer is required to pay an employee in excess of the state or federal minimum wage.

Adopted to prevent California-style patchwork

Section 62.0515 was passed by the Texas Legislature in 2003. The intent was explicitly to prevent the kind of city-by-city minimum wage variation that exists in states like California (where Berkeley, Oakland, and San Francisco each have their own rates) or Colorado (Denver, Edgewater, Boulder County).

Austin, Dallas, Houston, San Antonio attempts

Austin in 2018 passed a non-binding resolution calling for a $15 city minimum — symbolic, legally unenforceable for private employers. Austin and San Antonio also passed local paid sick leave ordinances in 2018; both were struck down by the Texas Supreme Court in 2018-2019 as preempted by the Texas Minimum Wage Act.

On autopilot

Teambridge labels Texas as a single-floor jurisdiction.

Preemption is the kind of rule operators don't think about until they assume Texas works like California — at which point they're already misconfigured. Teambridge routes Texas as a single-floor jurisdiction at the source.

01 · State setup

Texas configured as single-floor jurisdiction.

When a Texas location is added, Teambridge applies the state floor of $7.25 with no per-city overrides. Operators familiar with multi-jurisdictional CA/NY/CO setups see the simpler Texas configuration up front.

02 · Operator-facing explainer

Preemption surfaces in the dashboard.

When an operator searches for 'Austin minimum wage' or similar, Teambridge surfaces a brief explainer about preemption rather than a city-specific rate. Reduces confusion at the configuration layer.

03 · Government-contract handling

Custom rates for prevailing-wage contracts.

If a Texas operator has city-contract or federal Davis-Bacon work, those rates can be set per-contract in the contract module — distinct from the standard wage routing.

04 · Multi-state employer onboarding

TX-CA-NY operators flagged for transition.

Operators expanding from California or New York into Texas are surfaced an explainer noting the single-floor structure. Common assumption errors get caught up front.

Free · No commitment

Still evaluating? Get a free Texas compliance audit.

Send us your existing Texas scheduling and pay configuration. Our compliance team returns a written audit within 5 business days — every Texas-specific exposure ranked by risk and back-pay liability.

FAQ

People also ask.

Can Austin set a $15 minimum wage?
No. Austin's 2018 resolution was symbolic. Section 62.0515 of the Texas Labor Code preempts city minimums. The $7.25 state/federal floor applies to private employers in Austin same as anywhere else in Texas.
What about Dallas, Houston, San Antonio?
Same answer. No Texas city has an enforceable minimum wage above the state floor for private-sector employers. Section 62.0515 is statewide and uniform.
Didn't Austin and Dallas pass paid sick leave ordinances?
They tried. Austin's 2018 PSL ordinance was struck down by the Texas Court of Appeals in 2018 (later affirmed). Dallas's 2019 ordinance never took effect. Both were ruled preempted by the Texas Minimum Wage Act.
Are there any local wage rules at all?
City contracts and government employment are the exceptions. Cities can require higher wages on contracts they sign (similar to Davis-Bacon prevailing wage), and they can set wages for their own city employees. Neither extends to private-sector employment.
How is this different from California or Colorado?
California and Colorado allow local minimum wages above the state floor — and Berkeley, Oakland, San Francisco, Denver, Edgewater, Boulder County all use that authority. Texas explicitly bars the same approach. The result is statewide consistency.
How does Teambridge handle this?
Texas is configured as a single-floor jurisdiction with no per-city overrides for private-sector wages. The dashboard surfaces preemption explainers when operators assume California-style multi-jurisdiction routing.