In 2022, The Minimum Wage in Texas Will Remain $7.25


Every Monday morning, the media is full of stories about how the increase in minimum wage will impact the economy. The economic theory is that increasing the minimum wage will cause inflation and unemployment. These serious issues need to be addressed earlier rather than later, but you would like to propose a more elegant solution for tackling this issue: reduce the minimum wage.

The most logical way to reduce the cost of labor is by reducing wages, which is done with a decrease in the minimum wage. The impact of such an action could result in enormous benefits for society as a whole, including increased employment and lower prices for consumers.  

The Minimum Wage in Texas in 2022?

The minimum wage in Texas is $7.25. Since 2009, the minimum wage has not changed, but the cost of living has increased by 15.5%.

The living expense is rising, so it seems unlikely that the minimum wage will be adjusted accordingly to avoid inflation. The Federal Reserve is responsible for managing inflation, and if it sees the $7.25 minimum wage as the right amount, it will continue to act accordingly. In the short term, inflation is at near-record lows, which means the Federal Reserve will likely remain on a measured course. However, they have become increasingly concerned with deflation threats, and their plan to increase interest rates may hint that deflation is on the horizon.

Why Does the Minimum Wage Exist?

It is important to understand that the minimum wage is not a direct payment. The minimum wage is an indirect payment and provides a foundation of economic security for workers who cannot earn higher wages. The minimum wage also provides compensation for the cost of benefits like health insurance and vacations. The Federal Minimum wage only accounts for a portion of the economy, as many states and localities have their minimum wage requirements.

Should You Anticipate A Rise in The Minimum Wage Soon?

There are plans. The current minimum wage did not reflect the dollar’s purchasing power from 2009, when the recession began. There have been proposals to raise the minimum wage by ten dollars per year through 2015 and another proposal to raise it until it reaches $16.50 an hour in 2025.

How Should Small Business Owners Prepare for A Potential Texas Minimum Wage Increase?

The economy has been extremely volatile in the last couple of years, and it seems inevitable that Texas will see a minimum wage increase shortly. If you own a small business and are currently paying your staff $7.25 per hour, there are things you can do to prepare for a minimum wage increase:

1) Audit Your Expenses

You will likely have a minimum wage increase in payroll expenses, and you will want to review your books to ensure they reflect the correct amount. That way, you’ll be able to make the necessary changes to your retirement strategy. You can also run the numbers on different scenarios and see where you stand financially before and after a minimum wage increase.

2) Keep the Right Employees

You will also want to take a good look at your employees. Who do you trust? What is their background? Do your workers possess the knowledge and abilities necessary to contribute to the company? If you are in the process of hiring for positions that will require additional training, make sure your staff has these skills.

3) Increase Prices

There is no way to avoid raising prices, but you can make it easier yourself. You may decide to reduce the overtime you offer or raise the prices of your products and services. If you are in the process of negotiating with your employees, warning them about an upcoming increase will allow them to adjust their expectations accordingly.

4) Technology May Be Your Best Friend

There are many ways to reduce your labor costs. By investing in technology that takes over some of the work currently done by employees, you can cut operating expenses with little impact on profits. Many systems are available to track inventory, process payments, and manage schedules. You can also invest in design software to easily meet your employees’ shift requirements.

Different Types of Minimum Wages in Texas

The current federal rate is $7.25 per hour, but Texas has a different rate depending on the type of work.

1. Standard Minimum Wage: $7.25 per hour for any employee at least 15 years of age.

2. Tipped Employee Minimum Wage: $5.12 per hour if the employee earns at least $30 in tips each month from their employer, and the employer makes up the difference between $7.25 per hour and $2.13 per hour.

3. Student Minimum Wage: $4.25 per hour for employees under 20 years of age, provided that the employee is in high school, a junior or senior in high school, a student or apprentice in a vocational program and not over 19 years of age.

4. Under 20 Minimum Wage: $4.25 per hour for employees under 20 years of age, provided the employee is full-time, not in high school, a student, apprentice or home education student.


The minimum wage increase in Texas will greatly benefit those struggling to make ends meet, but it will also increase the cost of doing business for many companies. Given the current economic climate, many businesses will have to make difficult decisions to maintain their bottom line. It will help if you reduce your overhead as much as possible by using technology and other options.

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