What Is the Austin Minimum Wage?

If you’re running a restaurant in Austin, the minimum wage is the same as the one applied in Texas, which is $7.25 an hour. Texas has no state rate of its own and follows the federal one, and no city or county in Texas may set a higher rate for private employers.

That is quite surprising for a lot of people, since Austin is known for higher pay and a higher cost of living. The city can raise wages for its own workers, and it can set pay rules for companies that hold city contracts or get city incentives. But that doesn’t apply to a regular private restaurant.

Tipped staff work under the federal rules too. You can pay servers a cash wage of $2.13 an hour, as long as their tips bring them up to at least $7.25. If tips fall short, restaurants need to cover up the difference.

Almost no one hires at $7.25 in Austin. Cooks, dishwashers, and servers have lots of job options, so most restaurants pay well above the minimum wage. Plan your budget around what the local market demands, not just what the law requires.