Keeping your Texas bar compliant with labor laws is difficult. Missteps lead to fines and employee disputes. Your payroll and scheduling systems must handle constant changes.
Texas closely follows federal labor standards. Bar owners must understand these rules. This guide breaks down key regulations for your business. Lavu provides tools to simplify your compliance efforts. Lavu’s smart scheduling and payroll features help you meet obligations easily.
Minimum Wage
Current rate: $7.25 (effective July 24, 2009)
Future changes: No state changes are scheduled. Texas follows the federal minimum wage.
- Texas has no state minimum wage law. It uses the federal Fair Labor Standards Act (FLSA) rate.
- Employers must pay non-tipped employees at least $7.25 per hour.
- This rate applies to most employees unless exempt.
- Some local governments cannot set their own minimum wage.
Tipped Employees
Tip credit allowed: Yes
Minimum cash wage: $2.13
Texas bars must follow federal FLSA rules for tip pooling. Employers can require tip pooling among employees who regularly receive tips. This includes bartenders, servers, and barbacks. Employees who do not regularly receive tips, like kitchen staff, cannot join a mandatory tip pool. Employers cannot keep any portion of tips.
- Employers must tell tipped employees about cash wage and tip credit rules.
- Cash wages plus tips must meet or exceed the federal minimum wage.
- Tips belong to the employee, not the employer.
- Employers must keep accurate records of tips employees receive.
- Employers cannot take tip credit for non-tipped duties if they exceed 20% of an employee’s time.
Compliance Checklist
Post all required federal and state labor law notices in a visible location.
Ensure non-tipped employees earn at least $7.25 per hour.
Pay tipped employees at least $2.13 cash wage per hour.
Verify total compensation for tipped employees meets the $7.25 minimum wage, including tips.
Calculate and pay overtime at 1.5 times the regular rate for hours over 40 in a workweek.
Maintain accurate time and attendance records for all employees. Lavu’s time tracking helps.
Implement a clear and compliant tip-pooling policy, if applicable. Include only tipped employees.
Provide TABC training and certification for all staff serving alcohol.
Adhere to Texas child labor laws, especially concerning minors in alcohol-serving environments.
Provide reasonable break time and a private space for nursing mothers.
Conduct regular audits of payroll records to ensure accuracy. Marty’s analytics can assist.
Ensure proper classification of employees as exempt or non-exempt.
Frequently Asked Questions
Does Texas have its own state minimum wage?
No. Texas uses the federal minimum wage rate of $7.25 per hour.
Can I pay my bartenders less than the federal minimum wage if they receive tips?
Yes, if they are tipped employees. Pay them a minimum cash wage of $2.13 per hour; their total earnings with tips must reach at least $7.25 per hour.
Are mandatory tip pools legal in Texas bars?
Yes, mandatory tip pools are legal under federal law, which Texas follows. Only employees who regularly receive tips, like bartenders, can participate.
Do I have to provide meal or rest breaks to my bar staff in Texas?
No. Texas state law does not require meal or rest breaks for adult employees. Employers can offer them but do not have to.
What is the minimum age for serving alcohol in a Texas bar?
Yes, the minimum age to serve alcohol in a Texas bar is 18. Staff must also hold TABC certification.
Does Texas have predictive scheduling laws for bars?
No. Texas does not have any state or local laws requiring predictive scheduling. Employers do not owe extra pay for schedule changes.
When must I pay a former employee their final wages?
For involuntary terminations, pay final wages within six calendar days. For voluntary resignations, pay them on the next regular payday.
Can I make deductions from an employee’s paycheck for things like breakage or till shortages?
No, employers generally cannot deduct wages for breakage or till shortages. An employee must agree in writing after the loss, and the deduction cannot lower their pay below minimum wage.
Are salaried managers in my bar exempt from overtime pay?
Yes, if they meet federal criteria. Managers must primarily manage, supervise at least two full-time employees, and earn a salary of at least $684 per week ($35,568 annually).
Do I need to keep records of my employees’ hours worked?
Yes, absolutely. Federal and state laws require accurate records of hours worked, wages paid, and other employment details.
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