Minimum Wage in Houston, Texas: What Workers Must Know

Minimum Wage in Houston, Texas: What Workers Must Know

Houston workers and disability claimants alike frequently ask about minimum wage rules in Texas — especially when returning to part-time work while receiving or applying for Social Security Disability Insurance (SSDI) benefits. Understanding the wage floor in Houston is critical, not only for budgeting purposes but for determining how earned income may affect your federal disability benefits.

Texas Minimum Wage Law and How It Applies in Houston

Texas does not have a state minimum wage law that exceeds the federal minimum. As a result, the minimum wage in Houston, Texas is $7.25 per hour — the federal minimum wage established under the Fair Labor Standards Act (FLSA). This rate has remained unchanged since July 24, 2009, making Texas one of the states that has declined to adopt a higher wage floor.

Notably, Houston does not have a city-specific minimum wage ordinance. Under Texas law, local governments are preempted from enacting their own minimum wage rules. This means workers in Houston, Dallas, Austin, and San Antonio all receive the same $7.25 federal baseline — regardless of each city's individual cost of living.

• Standard minimum wage (Houston, TX): $7.25/hour
• Tipped employees: $2.13/hour, provided tips bring total compensation to at least $7.25/hour
• Youth/training wage: $4.25/hour for workers under 20 during the first 90 days of employment
• Exempt categories: Some small businesses, agricultural workers, and independent contractors may fall outside FLSA coverage

For workers with disabilities who are considering re-entering the workforce part-time, even at minimum wage, these numbers carry significant legal and financial implications under SSDI rules.

How Minimum Wage Earnings Interact With SSDI Benefits

The Social Security Administration (SSA) uses a metric called Substantial Gainful Activity (SGA) to determine whether a disability beneficiary is working at a level that disqualifies them from receiving SSDI payments. In 2026, the SGA threshold is $1,620 per month for non-blind individuals and $2,700 per month for statutorily blind beneficiaries.

At Houston's minimum wage of $7.25 per hour, a full-time schedule of 40 hours per week generates approximately $1,256 per month — below the SGA threshold. However, working more than 40 hours or receiving any additional compensation, bonuses, or tips could push gross earnings above the SGA limit, potentially triggering a review of your disability status.

This calculation matters deeply for SSDI recipients contemplating part-time work. A Houston resident working 25 hours per week at minimum wage earns roughly $785 per month — comfortably under the SGA threshold. But a second job, overtime, or wage increase could change that picture quickly.

The Trial Work Period and Ticket to Work Program

SSDI beneficiaries who want to test their ability to return to work have protections under the Trial Work Period (TWP). During the TWP, you may work for up to nine months (not necessarily consecutive) within a 60-month rolling window and still receive your full SSDI benefit, regardless of how much you earn.

For 2026, a month counts toward your TWP if you earn more than $1,110 in that month — an amount a Houston minimum wage worker earning 35+ hours per week could easily exceed. Once the nine TWP months are used, the SSA evaluates whether your earnings exceed SGA to determine continued eligibility.

The Ticket to Work program offers an additional layer of protection, allowing SSDI recipients to receive free employment support services while suspending the Continuing Disability Review (CDR) process. This can be particularly valuable for workers in Houston's service, hospitality, and retail sectors — industries where minimum wage employment is most common.

• Assign your Ticket to a state vocational rehabilitation agency or an Employment Network
• During active Ticket use, CDRs are generally suspended
• Benefits counseling is available at no cost through Work Incentive Planning and Assistance (WIPA) programs

Comparing Houston's Wage Floor to Nevada

For SSDI claimants who have relocated or are comparing wage rules across states, the contrast with Nevada is instructive. Nevada's minimum wage as of July 2024 is $12.00 per hour — significantly higher than Texas's federal floor. Nevada has implemented a tiered system that has gradually increased over recent years, with no distinction based on whether employers offer health insurance.

This gap matters for SSDI planning. A Nevada minimum wage worker earning $12.00/hour at 30 hours per week brings home approximately $1,560 per month — which exceeds the 2026 SGA threshold of $1,620 only narrowly, but can easily cross it with overtime or marginal wage increases. A Houston worker at $7.25/hour faces a very different SGA calculation, making part-time minimum wage work in Texas less likely to jeopardize SSDI eligibility on earnings grounds alone.

This distinction is critical for disability attorneys advising clients who move between states while on SSDI. The federal SGA threshold applies nationally, but the underlying wage rate that triggers it varies dramatically by state.

Practical Steps for Houston SSDI Recipients Considering Work

If you receive SSDI benefits and are considering taking minimum wage employment in Houston, take the following steps before accepting a job offer:

• Report all work activity to the SSA promptly — failure to report can result in overpayments you will be required to repay
• Request a Benefits Planning Query (BPQY) from the SSA to understand exactly where you stand in the TWP cycle
• Track hours and gross wages carefully every month, especially if you hold multiple jobs or receive tips
• Contact a WIPA counselor or disability attorney before starting work — many offer free pre-employment consultations
• Understand the Extended Period of Eligibility (EPE) — a 36-month window after the TWP during which you can still receive benefits for any month earnings fall below SGA

Texas law does not provide additional wage protections beyond the federal FLSA baseline, and Houston workers have no local minimum wage ordinance to rely on. For SSDI recipients, this means careful income management is essential. Earning even slightly above SGA for multiple months in a row can trigger a cessation of benefits, creating financial hardship that far outweighs the wages earned.

An experienced SSDI attorney can review your specific earnings record, TWP usage, and benefit history to map out a return-to-work strategy that protects your benefits while allowing you to test your work capacity — whether you are located in Houston, Texas or have previously lived and worked in Nevada.

Need Help? If you have questions about your case, call or text 833-657-4812 for a free consultation with an experienced attorney.

Related Articles

• Can someone on disability work?
• Do you have to have a job to get disability?
• Can you get disability living allowance if you work?