Minimum wage
The federal minimum wage has been $7.25 an hour since July 2009, and Texas uses that rate. Some want to raise it, some want states or the market to decide, and Texas law stops cities from setting their own.
The basics
The minimum wage is the lowest hourly pay most employers can legally offer. The federal rate rose to $7.25 on July 24, 2009, and has not changed since1.
States can set a higher minimum, and many have. Illinois and Massachusetts, for example, are at $15 an hour, while Texas and several other states use the federal $7.252.
Tipped workers can be paid as little as $2.13 an hour in direct wages under federal law, as long as tips bring them up to at least the full minimum3. If tips fall short, the employer must make up the difference3.
Few hourly workers earn exactly the minimum. In 2024, about 1.0% of hourly workers nationwide earned the federal minimum or less4.
Bills in Congress range widely. A Senate bill introduced in 2025 with sponsors from both parties (S. 2013) would raise the minimum to $15 and then adjust it for inflation5. The Raise the Wage Act of 2025 (H.R. 2743) would raise it in steps to $17 and then tie it to growth in typical wages6. As of September 2026 the federal minimum was still $7.252.
Key terms
- Federal minimum wage
- The lowest hourly wage allowed for most workers nationwide: $7.25 since July 24, 20091.
- Tipped minimum wage
- Under federal law, employers may pay tipped workers $2.13 an hour directly if tips make up the rest of the full minimum3.
- Preemption
- When a higher level of government blocks a lower one from making its own rules. Texas law overrides city minimum wage rules for private employers7.
- Indexing
- Raising a wage automatically each year based on inflation or wage growth so it keeps its value. Both 2025 bills described above include this56.
- Fair Labor Standards Act
- The federal law from 1938 that sets the minimum wage and overtime rules6.
In Texas
Texas does not set its own dollar amount. State law adopts the federal minimum by reference, so the minimum wage in Texas is $7.252.
Texas cities, including Colleyville, cannot set a higher minimum for private employers. State law says the state minimum supersedes any city ordinance on private wages, with narrow exceptions such as wages required in city contracts7.
In 2024, about 120,000 hourly workers in Texas earned the federal minimum or less, about 1.7% of the state's hourly workers4.
How people see it
The strongest case for each view, in terms its supporters would recognize. We don't pick a side.
Get rid of it
Supporters say employers and workers should be free to agree on pay. A legal minimum can price the least experienced workers out of jobs altogether, they argue, and competition for workers already pushes most pay well above $7.25.
Keep it and let each state decide
Supporters say living costs differ hugely from place to place, so one national number cannot fit everywhere. States and their voters can raise their own minimums, as many already have, while a basic federal floor stays in place.
Raise it modestly
Supporters say $7.25 has lost a lot of buying power since 2009 and should be updated, but in careful steps that small businesses can absorb. A moderate raise, they argue, helps workers while limiting the risk of job losses.
Raise it to around $15
Supporters say a full-time worker should not live in poverty, and $15 is closer to what basic living costs require today. They note this idea has backing from members of both parties and argue higher pay cuts turnover and reliance on public aid.
Raise it higher and tie it to the cost of living
Supporters say Congress has let the minimum sit unchanged for years at a time while prices rise. They would set a higher wage and adjust it automatically every year so workers never again go more than a decade without a raise.
Who decides
- U.S. Congress: Sets the federal minimum wage under the Fair Labor Standards Act.
- President: Signs or vetoes minimum wage bills.
- Texas Legislature and Governor: Could set a higher state minimum, or change the law that blocks cities from setting their own.
- U.S. Department of Labor: Enforces federal minimum wage and overtime rules.
Questions to ask a candidate
- What should the federal minimum wage be, and how did you arrive at that number?
- Should the minimum wage rise automatically with inflation each year?
- Should Texas cities be allowed to set their own minimum wage?
- Should the $2.13 tipped minimum wage be raised, kept or eliminated?
Last reviewed 2026-09-26. Spotted something wrong? Every claim links to its source so you can check it yourself.
Sources
- History of Changes to the Minimum Wage Law (chart)U.S. Department of Labor, Wage and Hour Division
- State Minimum Wage LawsU.S. Department of Labor, Wage and Hour Division
- Wages and the Fair Labor Standards Act: TipsU.S. Department of Labor
- Characteristics of minimum wage workers, 2024U.S. Bureau of Labor Statistics
- S.2013, Higher Wages for American Workers Act of 2025 (text)Congress.gov
- H.R. 2743, Raise the Wage Act of 2025 (introduced text)U.S. Government Publishing Office
- Texas Labor Code Section 62.0515Justia (Texas statutes)