Restaurant Labor Laws in Texas for Catering Companys: 2026 Compliance Guide

Protecting your Texas catering company from labor law violations feels like a high-stakes event. Federal and state regulations create complex rules. Errors lead to costly fines and employee disputes.
This guide breaks down key Texas labor laws for catering operations. It helps protect your business and your team. Lavu helps you follow these rules. It keeps your operations compliant. Visit https://lavu.com/demo to see how we help.

Minimum Wage

Current rate: $7.25 per hour (effective July 24, 2009)

Future changes: No state-specific changes are scheduled. Texas defaults to the federal minimum wage.

  • Texas does not have its own state minimum wage law. Federal law applies.
  • Employers must pay the federal minimum wage rate.
  • This rate applies to most employees. Some exceptions exist.

Tipped Employees

Tip credit allowed: Yes

Minimum cash wage: $2.13 per hour

Federal law governs tip pooling in Texas. Employers can require tip pooling among employees who regularly receive tips. This includes servers, bussers, and bartenders. Managers, supervisors, and owners cannot participate in tip pools. They also cannot keep any portion of employee tips.

  • Employers must inform tipped employees about the tip credit before using it.
  • The employee’s tips plus the cash wage must equal at least the federal minimum wage.
  • If tips and cash wage do not meet minimum wage, the employer must make up the difference.
  • Tips are the property of the employee. Employers cannot take or withhold tips.
  • Lavu’s reporting tools help track tip distribution. Marty provides insights into tip compliance.

Compliance Checklist

Verify all non-exempt employees earn at least the federal minimum wage of $7.25 per hour.

Ensure tipped employees receive at least $2.13 per hour in cash wages, plus tips reaching federal minimum wage.

Post required federal and state labor law notices at your main catering facility. Also have copies available at event sites.

Accurately track all hours worked for non-exempt employees. This includes setup, teardown, and travel time between events.

Calculate and pay overtime at 1.5 times the regular rate for hours over 40 in a workweek.

Review employee classifications (exempt vs. non-exempt) annually. Ensure they meet all legal criteria.

Provide reasonable break time and a private space for nursing mothers, if applicable.

Maintain detailed payroll records for at least three years, including timecards and pay stubs. Lavu’s data collection helps here.

Comply with all federal child labor laws regarding hours, occupations, and breaks for minor employees.

Ensure proper tip pooling rules are followed. Managers and owners cannot receive tips from staff.

Review employee handbook policies for alignment with Texas and federal labor laws.

Implement a clear policy for reporting and recording all hours worked. This prevents off-the-clock work.

Frequently Asked Questions

Does Texas have a higher state minimum wage than the federal rate?

No, Texas has no state minimum wage higher than the federal rate. Employers must follow the federal minimum wage of $7.25 per hour.

Are catering companies in Texas required to provide meal or rest breaks?

No, Texas state law does not mandate meal or rest breaks for adult employees. Federal law also has no general requirement.

Can my catering company use tip pooling in Texas?

Yes, federal law allows tip pooling. It must only include regularly tipped employees and follow all FLSA regulations.

Do I need to pay catering staff for travel time between event locations?

Yes, travel time between different work sites on the same day is generally compensable. This includes travel between your main kitchen and event venues.

What is the minimum cash wage I must pay my tipped catering staff?

The minimum cash wage for tipped employees in Texas is $2.13 per hour. Tips must bring their total earnings to at least the federal minimum wage.

Are there specific child labor laws for catering in Texas?

Yes, federal child labor laws apply in Texas. These dictate minimum age, maximum hours, and permissible jobs for minors.

Do I need to subscribe to workers’ compensation insurance for my catering business in Texas?

No, Texas law does not mandate private employers to carry workers’ compensation insurance. Not subscribing has significant legal implications if an employee is injured.

Does Texas have predictive scheduling laws for restaurant employees?

No, Texas has no statewide predictive scheduling laws. Employers do not need to provide advance notice of schedules or pay ‘predictability pay’.

What records must my catering company keep for employees?

Employers must keep accurate records. These include hours worked, wages paid, deductions, and other employment information. Keep these records for at least three years under federal law.

Can a catering manager or owner participate in the employee tip pool?

No, managers, supervisors, and owners cannot participate in an employee tip pool. They cannot keep any portion of employee tips under federal law.

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FAQ

Frequently Asked Questions

Get answers to common questions about Marty, Lavu POS, and how they work together.

What is Marty and what does it actually do?

Marty is your restaurant’s intelligence engine. It watches every sale, shift, hour, item, and
trend inside your POS and gives you clear, actionable direction.

Marty informs. Lavu automates.
Together they act like a digital GM that never sleeps.

Marty gives you:

  • Daily morning briefings
  • Real time sales and labor insights
  • Forecasts and schedule recommendations
  • High margin bundle suggestions
  • Menu and pricing guidance
  • Server performance insights
  • Alerts when something is off


No spreadsheets. No reports. Just clarity and next steps.

You can run basic reporting and audits without Lavu.

But the full power of Marty only unlocks when paired with Lavu POS.

Why?
Because Marty needs real-time, restaurant-wide data to give you accurate insights and
recommendations.
With Lavu, Marty can see everything that happens in your restaurant and Lavu can instantly automate the action.

Marty informs.
Lavu executes.

Three things owners consistently call out:

It runs on iPads
Staff learn it fast. Training drops from days to hours.

It is flexible and not hardware locked
You are not forced into proprietary hardware. You can buy replacements anywhere.

It is the only POS designed to work with Marty
Other POS systems show you what happened.
Lavu plus Marty tells you what to do next.
This is what restaurants actually need to increase profit

Marty analyzes everything happening in your restaurant.
Lavu automates the work behind it.

Examples:

  • Marty flags high food cost items. Lavu shows the exact recipe cost and usage.
  • Marty spots slow periods. Lavu triggers targeted outreach or bundle suggestions.
  • Marty forecasts sales. Lavu generates the schedule with labor control.


It feels like hiring an analyst and an operations manager without adding payroll

Yes. Lavu uses PCI compliant, encrypted payment processing trusted in restaurants
worldwide.

Secure card handling, safe mobile payments, and no risky shortcuts

Most servers pick it up within one shift because it mirrors real restaurant workflows.

Managers love how much time they get back during onboarding

Lavu offers flexible plans for single location operators and multi location brands.

Pricing depends on your configuration, number of devices, and whether you activate Marty.

We will help you select the right setup based on your volume and goals.

Almost always yes.

Lavu works with major EMV readers, printers, KDS screens, and delivery platforms.
We are partnered with Apple to deliver the best-in-class iPad hardware experience.
For payments, Lavu integrates with Adyen, a global leader in secure restaurant payment
processing.

Because the system is open, you are not trapped buying expensive proprietary hardware.

Yes. Online orders flow straight into the POS with no extra steps and no chaos.

You can manage curbside, pickup, and delivery from the same screen.

Inventory updates in real time as items are sold.

Marty then analyzes the trends and highlights waste, low stock, or margin issues so you can
correct them early.

Yes. Lavu tracks time, wages, overtime, and labor percentage.

Marty adds intelligence on top of it by showing staffing efficiency, server performance, and when labor is running high.

Worldwide.

Both support restaurants across the globe with the infrastructure and partnerships needed
for international operations.

While Lavu is purpose built for restaurants, it works with other businesses too.
Drop us a line to find out more

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