What is the minimum wage in Houston?

Houston follows the Texas state minimum wage, which matches the federal floor of $7.25 per hour. Texas has not set a higher state rate, and Texas law prevents cities from enacting their own higher local minimum wage for private employers.

How is overtime calculated in Texas?

Under the federal Fair Labor Standards Act, non-exempt employees earn 1.5 times their regular rate for every hour worked beyond 40 in a workweek. Texas follows this federal standard with no daily overtime requirement.

What is the tipped minimum wage in Texas?

Tipped employees can be paid a cash wage as low as $2.13 per hour, provided tips bring them up to at least $7.25 per hour. If tips fall short, the employer must make up the difference through a tip credit.

Does Houston have daily overtime?

No. Texas and federal law only require overtime after 40 hours in a workweek, not after 8 hours in a day. Working 10 hours one day does not trigger overtime unless your weekly total exceeds 40.

Who is exempt from overtime?

Certain salaried executive, administrative, professional, and outside-sales employees who meet duties tests and minimum salary thresholds are exempt. This calculator assumes a non-exempt hourly worker entitled to overtime.

Houston Minimum Wage & Overtime Calculator

A Houston minimum wage and overtime calculator that turns hours worked into accurate gross pay. Houston follows the Texas minimum of $7.25/hour — identical to the federal floor — and applies federal overtime: 1.5x the regular rate for hours beyond 40 in a week. The tool also handles tipped workers, who may be paid a $2.13 cash wage as long as tips lift them to at least $7.25.

How it works

Pay splits at the 40-hour line each workweek:

regular hours   = min(hours, 40)
overtime hours  = max(hours - 40, 0)
regular pay     = regular hours x rate
overtime pay    = overtime hours x rate x 1.5
gross weekly    = regular pay + overtime pay

Overtime is paid at 1.5x the regular rate for every hour over 40 in the week.

For tipped employees, the employer pays a cash wage (as low as $2.13) and claims a tip credit for the gap up to $7.25. The calculator checks whether the cash wage plus reported tips reaches the full minimum; if it falls short, it flags that the employer must make up the difference. Overtime for tipped workers is based on the full $7.25 minimum rate, not the $2.13 cash wage.

Example and notes

A worker at $7.25 for 45 hours earns 40 x $7.25 = $290 regular, plus 5 x $7.25 x 1.5 = $54.38 overtime, for a gross of $344.38. A tipped server paid $2.13 cash who reports enough tips to clear $7.25 is compliant; if not, the employer owes the shortfall.

Notes: Texas has no daily overtime — only the weekly 40-hour threshold matters. The tool assumes a non-exempt hourly worker; salaried exempt staff are not entitled to overtime. Figures are gross, before tax withholding. All math runs locally in your browser.