Texas tip pooling laws & tipped minimum wage
In Texas, employers can pay tipped workers $2.13/hr as long as tips bring them to the $7.25 minimum — here's how that works and who can legally share your tips.
| Regular minimum wage | $7.25/hr |
| Minimum cash wage for tipped workers | $2.13/hr |
| Maximum tip credit | $5.12/hr |
| Tips belong to | Employees — always |
A tip credit lets an employer count your tips toward the minimum wage it owes you. Rates reviewed July 2026. Rates change — confirm with the Texas labor department. Not legal advice.
Texas uses the federal floor — and blocks cities from raising it
Texas sets its minimum wage at the federal rate of $7.25 an hour and has not raised it since 2009. Tipped workers can be paid a cash wage of $2.13 an hour, with the employer claiming a tip credit of up to $5.12, as long as tips bring the total to at least $7.25.
What makes Texas different from states like California or New York is that no Texas city can set a higher minimum wage. Under Section 62.0515 of the Texas Labor Code, passed in 2003, cities and counties cannot require employers to pay above the state or federal minimum. Austin, Dallas, Houston, and San Antonio have all pushed local wage measures over the years, and every one was preempted. So whether you serve tables in a big city or a small town, the tipped floor across Texas is the same $2.13 cash and $7.25 total.
If your tips do not reach $7.25, your employer owes the difference
The tip credit is not permission to pay you below minimum wage. In any workweek where your $2.13 cash wage plus your tips do not average at least $7.25 an hour, your employer has to make up the shortfall in that paycheck.
Your employer also has to tell you before taking the tip credit. If they never gave you that notice, they generally owe you the full $7.25 an hour for the affected time, not the reduced $2.13.
How to recover unpaid or withheld tips in Texas
Texas has no tip law of its own, so the federal Fair Labor Standards Act controls, and you have two places to enforce it. For unpaid wages or a tip credit taken without notice, you can file a wage claim with the Texas Workforce Commission under the Texas Payday Law, or a complaint with the U.S. Department of Labor Wage and Hour Division.
One rule never bends: managers, supervisors, and owners may not keep any part of your tips in Texas, from a jar or a pool. A manager can only keep tips from a table they personally served start to finish.
Tip pooling in Texas
Texas follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $2.13/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
One federal rule applies everywhere: managers and supervisors can never take from a tip pool. Separately, credit card processing fees may only be deducted from tips where state law allows it.
What this means for your tip-out
Because part of your legal wage in Texas comes from tips, the employer's tip credit assumes those tips reached you. Use the tip-out calculator to split a shift by your house's percentages or by hours, and see standard tip-out percentages to check whether your house's rates are typical.
Texas tip law FAQs
What is the tipped minimum wage in Texas?
Employers in Texas may pay tipped employees a cash wage of $2.13/hr and claim a tip credit of up to $5.12/hr toward the $7.25 minimum wage. If tips don't close the gap in a workweek, the employer must make up the difference.
Is mandatory tip pooling legal in Texas?
Texas follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $2.13/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
Can my manager take a share of the tip pool in Texas?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including Texas. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
Can a city in Texas set a higher tipped minimum wage?
No. Texas Labor Code Section 62.0515 bars cities and counties from requiring private employers to pay above the state or federal minimum wage, so the tipped cash wage stays $2.13 statewide. Local governments can raise pay for their own employees and contractors, but not for private restaurants and bars.
Does Texas have its own tip-pooling law?
No. Texas adds nothing beyond the federal FLSA, so federal tip-pooling rules apply: an employer can require a pool, only customarily tipped staff can be in it when a tip credit is taken, and managers or owners can never keep tips from it.