Issues in State and Federal Minimum Wage Laws

 Posted on August 22, 2014 in San Antonio Bankruptcy Attorney

The minimum wage was a concept put in place to protect workers from the past tyranny of their employers. Larger companies can hold a lot of sway over the heads of individuals depending on a paycheck to put food on their tables and provide themselves and their families with the basic living necessities. This system also prevents businesses and business owners from auctioning off jobs, until men and women are forced to work for cents on the hour.

The problem with Texas minimum wage is exactly what it describes--the smallest amount an employer can legally pay his or her employees. Over the last few years in particular, many people are beginning to ask themselves and their legislatures whether the minimum wage laws are progressive enough to have evolved with society.

The current minimum wage in the State of Texas is only $7.25 per hour, the federally mandated minimum wage. While many other states have their own minimum wage laws that increase this rate, Texas is not one of them. The following statistics about the cost of living in Texas can be startling compared with its already low minimum wage:

• The average cost of a one bedroom apartment in Houston is $1,144 per month;

• A gallon of gas is priced at a little over $3.60 each;

• One ride on public transit costs $1.25;

• A regular gallon of milk is priced at $3.28;

Basing this on an average 40 hour work week, if you were getting paid minimum wage, then you would be making $1,160 before taxes are taken out, meaning that this income is not even enough to pay the rent of a one bedroom apartment in Houston. To make matters even worse, there are exemptions on certain employees that do not even have to be paid the $7.25 an hour:

• Certain agricultural workers are not covered under the law;

• Populations of mentally handicapped individuals can be exempt;

• Employers may factor in the cost of meals and/or lodging into the compensation they offer.

The economy in Texas, though improving slightly, has still left many in dire financial constraints. The minimum wage law is lacking in some aspects, leaving bankruptcy the only options for many residents of the state. If this is you, contact a New Braunfels bankruptcy attorney today for experienced legal assistance with all of your bankruptcy needs.