Serving in Texas: What Every Restaurant Worker Should Know

In Texas, you should earn at least $7.25/hr including tips, with employers required to make up any shortfall if your $2.13/hr base plus tips falls short. You're entitled to overtime pay for hours worked beyond 40 per week. 

While Texas doesn't mandate meal or rest breaks, paid breaks under 20 minutes are required by federal law when employers choose to offer them. New “Ban the Box” protections are scheduled to start September 1, 2025, limiting when certain employers can ask about criminal history. 

Understanding these rights protects your livelihood.

Tip Credit System and Your Paycheck

Often misunderstood by new servers, the tip credit system considerably impacts how your paycheck is calculated in Texas restaurants. Your employer can legally pay you as little as $2.13 per hour if your tips bring your total hourly earnings to at least the federal minimum wage of $7.25. They're taking a “tip credit” of up to $5.12 per hour against your wages.

You must be notified about this arrangement. If your tips don't reach minimum wage after including related duties, your employer must make up the difference. Watch for tip calculation errors on your paychecks. 

Remember, tip pooling rules must follow federal requirements, and all tips must be paid out by your regular payday. These tip credit laws vary significantly between states, with Texas following the federal standard while seven states prohibit tip credits altogether.

Minimum Wage Rights for Texas Servers

Three key numbers define your minimum wage rights as a Texas server: $7.25, $2.13, and 2009. That $7.25 represents the federal minimum wage used in Texas for most restaurant workers, unchanged since 2009, while $2.13 is the minimum direct wage your employer can pay when using the tip credit system.

You're legally entitled to earn at least $7.25 per hour including tips. If your tips plus the $2.13 hourly wage don't reach this threshold, your employer must make up the difference. This applies to all your work, including side work compensation for non-tipped tasks. 

Your tip reporting obligations are essential for proving your total earnings. While some Texas cities set higher pay rates for certain city positions, those increases typically do not change the minimum wage rules for private restaurant workers.

Required Breaks and Scheduling Regulations

While understanding your wage rights establishes your financial foundation, knowing Texas break laws is equally important for managing your daily work schedule. Surprisingly, Texas doesn't legally require employers to provide meal or rest breaks, including 30-minute meal breaks. However, many restaurants follow customary practices.

If your employer does provide breaks, remember: rest breaks under 20 minutes must be paid; meal breaks over 30 minutes can be unpaid if you're completely relieved of duties; and any time you work during a designated break period must be compensated. 

Although there are no scheduling transparency requirements in Texas law, some retail employers must provide at least one 24-hour rest period every seven days. When working with younger colleagues, be aware that Texas enforces child labor laws that restrict hours and prohibit hazardous work for minors. If promised breaks aren't provided or paid properly, your employer could face federal penalties.

Upcoming “Ban the Box” Employment Protections

A major change is coming to Texas employment practices that could directly impact your job prospects in the restaurant industry. Starting September 1, 2025, certain employers can’t ask about your criminal history on initial job applications under new “Ban the Box” legislation. This means some restaurants must delay criminal background checks until they've determined you're qualified, invited you to interview, or extended a conditional offer.

These fair hiring procedures aim to give applicants with records a better chance to demonstrate their qualifications before disclosing past mistakes. While local ordinances in cities like Austin have faced state preemption, this statewide protection is intended to promote fairer employment opportunities.

Overtime Compensation in Restaurant Settings

Beyond understanding hiring practices, knowing your overtime rights can dramatically impact your paycheck in the restaurant industry. In Texas, you're entitled to 1.5 times your regular rate for hours worked beyond 40 in a workweek—regardless of your role as server, cook, or host. Even if you work unauthorized overtime hours, employers must still provide overtime compensation for all time worked.

Track your hours meticulously—timesheet accuracy is your protection; document all work time, including pre-shift prep and post-closing duties. Understand your classification—non-exempt employees (most restaurant staff) qualify for overtime; certain salaried roles may not. 

Review your paystubs regularly—records should clearly show your hours worked and overtime calculations; if they don't, request clarification immediately. Remember: Overtime applies weekly, not daily—working 12 hours in one day doesn't automatically trigger overtime pay.

Worker Classification: Employee vs. Independent Contractor

Understanding your proper worker classification serves as the foundation for all your workplace rights in Texas restaurants. Texas relies on federal and state criteria to determine if you're an employee or independent contractor.

As an employee, you're subject to your employer's control regarding schedules and procedures, entitled to minimum wage ($7.25/hr), overtime, and benefits like unemployment insurance. If you're a tipped worker, your employer must guarantee you reach minimum wage thresholds. Independent contractors set their own hours, use their own tools, and serve multiple clients. 

According to the Texas Workforce Commission, the degree of control an employer exercises over your work is the most critical factor in determining your classification status. Neither business incorporation nor signed contracts alone determine your classification—actual working conditions matter most. 

Misclassification can deny you critical wage protections and benefits while exposing the employer to penalties.