FOR FURTHER INFORMATION:                                                               FOR RELEASE:
Cheryl Abbot, Regional Economist                                                       April 8, 2009
(972) 850-4800                                              
http://www.bls.gov/ro6/                 

                                       MINIMUM WAGE WORKERS IN TEXAS: 2008

     Among hourly-paid workers in Texas, 262,000 had earnings at or below the prevailing Federal minimum wage (1) in 
2008, according to the U.S. Department of Labor’s Bureau of Labor Statistics.  (See chart A.)  About 5.5 million 
workers were paid at hourly rates, representing 52.1 percent of all Texas wage and salary workers (2).  Regional 
Commissioner Stanley W. Suchman noted that workers paid at or below the Federal minimum accounted for 4.7 percent 
of these hourly-paid workers in Texas (3).  This was one of the highest shares in the nation.  (See table 1.)


               Chart A.  Employed wage and salary workers paid hourly rates with earnings at or 
               below the prevailing Federal minimum wage in Texas, annual averages, 1998-2008
               Employed wage and salary workers paid hourly rates with earnings at or 
below the prevailing Federal minimum wage in Texas, annual averages, 1998-2008

     According to Current Population Survey (CPS) estimates for 2008, 75.3 million workers in the United States were 
paid at hourly rates, representing 58.2 percent of all wage and salary workers.  Of those paid by the hour, 286,000 
earned exactly the prevailing Federal minimum wage and about 1.9 million additional workers earned wages below the 
minimum.  Together, these 2.2 million workers with wages at or below the Federal minimum made up 3.0 percent of all 
hourly-paid workers in the nation.

     In Texas, with the exception of a slight uptick in 2003, the number of hourly-paid workers at or below the 
Federal minimum wage declined steadily from 1998 to 2006.  However, that trend reversed itself in 2007 and continued 
upward in 2008.  With the increased Federal minimum wage in 2007 and 2008, both a larger number and a higher 
percentage of workers in the State received hourly wages at or below the minimum wage.  (See chart A.)

     The number of workers at or below the Federal minimum wage in Texas rose by 41,000 in 2008 with 25,000 of this 
increase among men.  As a result, men accounted for nearly 36 percent of all the State’s hourly-paid workers who 
earned the Federal minimum wage or less, up from about 31 percent in 2007.  Still, the likelihood of earning the 
Federal minimum wage or less was twice as high for women (6.5 percent) as for men (3.2 percent) in the State in 
2008.  (See table A and chart B.)


               Chart B.  Percentage of employed wage and salary workers paid hourly rates
               with earnings at or below the prevailing Federal minimum wage in Texas,
               by sex, annual averages, 1998-2008
               Percentage of employed wage and salary workers paid hourly rates with 
earnings at or below the prevailing Federal minimum wage in Texas, by sex, annual 
averages, 1998-2008

     Among the 50 states and the District of Columbia in 2008, Mississippi, at 6.0 percent, had the highest 
proportion of hourly-paid workers earning at or below the prevailing Federal minimum wage.  Mississippi was closely 
followed by South Carolina and Tennessee at 5.9 and 5.8 percent, respectively.  Texas ranked seventh with 4.7 
percent of the State's hourly workers earning the Federal minimum wage or less.  Oregon had the lowest rate at 0.8 
percent, followed by Alaska and California, both at 1.0 percent.  It should be noted that as of January 1, 2009, 27 
states and the District of Columbia had laws establishing minimum wage standards that exceeded the Federal level of 
$6.55 per hour (4).  (See table 1 and chart C.)


                         Chart C.  Minimum wage laws in the States, January 1, 2009

                         Minimum wage laws in the States, January 1, 2009

                   (Map source:  U.S. Department of Labor, Employment Standards Administration)



     Overall, Texas wage and salary workers paid hourly rates (5) had median hourly earnings of $11.00 in 2008; 
nationally, the median was $12.23.  The 2008 median hourly rates for men and for women in Texas were $11.99 and 
$10.02, respectively.  (See table A.)  For the United States as a whole, the comparable hourly figures were $13.46 
for men and $11.49 for women in 2008.


Table A. Employed wage and salary workers paid hourly rates with earnings at or below the prevailing Federal minimum wage and median hourly earnings of all hourly-paid workers in Texas, by sex, annual averages, 1998-2008
Texas At or below Federal minimum wage (number of workers in thousands) All hourly-paid workers
Total Below Prevailing At Prevailing Number of workers (in thousands) Median earnings (in dollars)
Total

1998

466 255 211 5,055 $ 8.23

1999

337 186 151 4,990 8.54

2000

297 174 123 5,112 9.01

2001

215 128 87 5,101 9.48

2002

205 129 76 5,002 9.76

2003

235 161 74 5,258 9.82

2004

198 131 67 5,293 9.95

2005

176 121 55 5,467 10.04

2006

173 121 52 5,724 10.22

2007

221 175 46 5,585 10.54

2008

262 208 54 5,527 11.00
Men

1998

186 108 78 2,660 $ 8.97

1999

120 68 52 2,560 9.35

2000

114 70 44 2,667 9.83

2001

90 50 40 2,712 10.11

2002

82 61 21 2,623 10.11

2003

96 70 26 2,704 10.18

2004

77 48 29 2,753 10.41

2005

67 48 19 2,835 10.87

2006

69 47 22 3,011 11.18

2007

69 53 16 2,895 11.54

2008

94 78 16 2,932 11.99
Women

1998

280 147 133 2,395 $ 7.50

1999

217 118 99 2,430 7.84

2000

183 104 79 2,445 8.18

2001

125 78 47 2,389 8.55

2002

123 68 55 2,379 8.90

2003

139 91 48 2,553 8.95

2004

122 84 38 2,541 9.33

2005

110 73 37 2,632 9.24

2006

104 74 30 2,713 9.80

2007

152 122 30 2,690 9.86

2008

168 130 38 2,595 10.02

Note: Data exclude all self-employed persons whether or not their businesses are incorporated.

====================================================================================================================== (1) On July 24, 2008, the Federal minimum wage increased to $6.55 per hour from $5.85 per hour. Data in this report reflect the average number of workers earning the prevailing Federal minimum wage or less for the year — those who earned $5.85 or less from January 2008 through July 2008 and those who earned $6.55 or less from August 2008 through the end of the year. (2) Data are for wage and salary workers age 16 and over and refer to earnings on a person's sole or principal job. All self-employed persons are excluded whether or not their businesses are incorporated. (3) It should be noted that the presence of a sizable number of workers with reported wages below the minimum does not necessarily indicate violations of the Fair Labor Standards Act, as there are exemptions to the minimum wage provisions of the law. (4) U.S. Department of Labor, Employment Standards Administration, Wage and Hour Division: www.dol.gov/esa/minwage/america.htm#Consolidated. (5) Wage rates in this release use median values. The median is the middle of a distribution: half the scores are above the median and half are below the median. The median is less sensitive to extreme wages than the mean; this makes it a better measure than the mean for highly skewed distributions. ====================================================================================================================== Technical Note The Bureau of Labor Statistics' data on minimum wage earners are derived from the Current Population Survey (CPS), a nationwide sample survey of households that includes questions enabling the identification of hourly-paid workers and their hourly wage rate. Data in this summary are annual averages. Minimum wage data, particularly levels, for each year are not strictly comparable with data for earlier years because of the introduction of revised population controls used in the CPS. The effect of the revised population controls on the minimum wage estimates is unknown. For technical documentation and related information, including reliability of the CPS estimates, see www.bls.gov/cps/documentation.htm. It should be noted that the presence of a sizable number of workers with reported wages below the minimum does not necessarily indicate violations of the Fair Labor Standards Act, as there are exemptions to the minimum wage provisions of the law. The estimates of the numbers of minimum and subminimum wage workers presented in the accompanying tables pertain to workers paid at hourly rates; salaried and other non-hourly workers are excluded. As such, the actual number of workers with earnings at or below the prevailing minimum is undoubtedly understated. Research has shown that a relatively smaller number and share of salaried workers and others not paid by the hour have earnings that, when translated into hourly rates, are at or below the minimum wage. However, BLS does not routinely estimate hourly earnings for non-hourly workers because of data concerns that arise in producing these estimates. For further information, see Steven Haugen and Earl Mellor, "Estimating the number of minimum wage workers," Monthly Labor Review, January 1990 (PDF 415K). The prevailing Federal minimum wage was $2.90 in 1979, $3.10 in 1980, and $3.35 in 1981-89. The minimum wage rose to $3.80 on April 1, 1990, to $4.25 on April 1, 1991, to $4.75 on October 1, 1996, to $5.15 on September 1, 1997, to $5.85 on July 24, 2007, and to $6.55 on July 24, 2008. Data in this report reflect the average number of workers earning the prevailing Federal minimum wage or less for the year (those who earned $5.85 or less from January 2008 through July 2008 and those who earned $6.55 or less from August 2008 through the end of the year). This release is available on our Web site at http://www.bls.gov/ro6/home.htm. If you have additional questions, you can contact the Southwest Information Office at 972-850-4800. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; TDD message referral phone number: 1-800-877-8339.
Table 1. Employed wage and salary workers paid hourly rates with earnings at or below the prevailing Federal minimum wage by State, 2008 annual averages
State   Number of workers
(in thousands)
  Percent
distribution
  Percent of workers
paid hourly rates
Total
paid
hourly
rates   
At or below minimum wage Total
paid
hourly
rates  
At or below minimum wage At or below minimum wage
Total At
minimum
wage  
Below
minimum
wage  
Total At
minimum
wage  
Below
minimum
wage  
Total At
minimum
wage  
Below
minimum
wage  

Total, 16 years & over

75,305 2,226 286 1,940 100.0 100.0 100.0 100.0 3.0 0.4 2.6

Alabama

1,119 47 17 30 1.5 2.1 5.9 1.5 4.2 1.5 2.7

Alaska

204 2 - 2 0.3 0.1 - 0.1 1.0 - 1.0

Arizona

1,533 46 5 41 2.0 2.1 1.7 2.1 3.0 0.3 2.7

Arkansas

703 26 5 21 0.9 1.2 1.7 1.1 3.7 0.7 3.0

California

8,778 86 6 80 11.7 3.9 2.1 4.1 1.0 0.1 0.9

Colorado

1,211 48 1 47 1.6 2.2 0.3 2.4 4.0 0.1 3.9

Connecticut

892 16 1 15 1.2 0.7 0.3 0.8 1.8 0.1 1.7

Delaware

220 6 - 6 0.3 0.3 - 0.3 2.7 - 2.7

District of Columbia

110 3 - 3 0.1 0.1 - 0.2 2.7 - 2.7

Florida

4,058 127 5 122 5.4 5.7 1.7 6.3 3.1 0.1 3.0

Georgia

2,084 76 13 63 2.8 3.4 4.5 3.2 3.6 0.6 3.0

Hawaii

338 5 - 5 0.4 0.2 - 0.3 1.5 - 1.5

Idaho

412 15 4 11 0.5 0.7 1.4 0.6 3.6 1.0 2.7

Illinois

3,211 80 - 80 4.3 3.6 - 4.1 2.5 - 2.5

Indiana

1,812 64 10 54 2.4 2.9 3.5 2.8 3.5 0.6 3.0

Iowa

927 21 1 20 1.2 0.9 0.3 1.0 2.3 0.1 2.2

Kansas

791 31 5 26 1.1 1.4 1.7 1.3 3.9 0.6 3.3

Kentucky

1,101 45 9 36 1.5 2.0 3.1 1.9 4.1 0.8 3.3

Louisiana

953 48 9 39 1.3 2.2 3.1 2.0 5.0 0.9 4.1

Maine

397 7 - 7 0.5 0.3 - 0.4 1.8 - 1.8

Maryland

1,339 37 5 32 1.8 1.7 1.7 1.6 2.8 0.4 2.4

Massachusetts

1,543 35 2 33 2.0 1.6 0.7 1.7 2.3 0.1 2.1

Michigan

2,641 73 2 71 3.5 3.3 0.7 3.7 2.8 0.1 2.7

Minnesota

1,511 40 6 34 2.0 1.8 2.1 1.8 2.6 0.4 2.3

Mississippi

667 40 9 31 0.9 1.8 3.1 1.6 6.0 1.3 4.6

Missouri

1,592 50 4 46 2.1 2.2 1.4 2.4 3.1 0.3 2.9

Montana

287 4 2 2 0.4 0.2 0.7 0.1 1.4 0.7 0.7

Nebraska

551 20 3 17 0.7 0.9 1.0 0.9 3.6 0.5 3.1

Nevada

736 16 2 14 1.0 0.7 0.7 0.7 2.2 0.3 1.9

New Hampshire

380 11 - 11 0.5 0.5 - 0.6 2.9 - 2.9

New Jersey

1,781 53 5 48 2.4 2.4 1.7 2.5 3.0 0.3 2.7

New Mexico

495 13 - 13 0.7 0.6 - 0.7 2.6 - 2.6

New York

4,105 100 6 94 5.5 4.5 2.1 4.8 2.4 0.1 2.3

North Carolina

2,235 78 11 67 3.0 3.5 3.8 3.5 3.5 0.5 3.0

North Dakota

199 8 1 7 0.3 0.4 0.3 0.4 4.0 0.5 3.5

Ohio

3,329 77 5 72 4.4 3.5 1.7 3.7 2.3 0.2 2.2

Oklahoma

878 48 19 29 1.2 2.2 6.6 1.5 5.5 2.2 3.3

Oregon

999 8 2 6 1.3 0.4 0.7 0.3 0.8 0.2 0.6

Pennsylvania

3,457 85 6 79 4.6 3.8 2.1 4.1 2.5 0.2 2.3

Rhode Island

296 6 - 6 0.4 0.3 - 0.3 2.0 - 2.0

South Carolina

1,111 66 6 60 1.5 3.0 2.1 3.1 5.9 0.5 5.4

South Dakota

256 6 1 5 0.3 0.3 0.3 0.3 2.3 0.4 2.0

Tennessee

1,533 89 12 77 2.0 4.0 4.2 4.0 5.8 0.8 5.0

Texas

5,527 262 54 208 7.3 11.8 18.9 10.7 4.7 1.0 3.8

Utah

736 18 5 13 1.0 0.8 1.7 0.7 2.4 0.7 1.8

Vermont

183 4 - 4 0.2 0.2 - 0.2 2.2 - 2.2

Virginia

1,809 70 5 65 2.4 3.1 1.7 3.4 3.9 0.3 3.6

Washington

1,875 26 3 23 2.5 1.2 1.0 1.2 1.4 0.2 1.2

West Virginia

494 26 10 16 0.7 1.2 3.5 0.8 5.3 2.0 3.2

Wisconsin

1,748 53 9 44 2.3 2.4 3.1 2.3 3.0 0.5 2.5

Wyoming

160 7 1 6 0.2 0.3 0.3 0.3 4.4 0.6 3.8
NOTE: Data exclude all self-employed persons whether or not their businesses are incorporated. Users are reminded that these data are based on a sample and are therefore subject to sampling error; the degree of error may be quite large for less populous States. It is not possible to determine clearly whether workers surveyed in the CPS are actually covered by the Fair Labor Standards Act (FLSA) or by individual State minimum wage laws. Thus, some workers reported as earning the prevailing Federal minimum wage may not in fact be covered by Federal or State minimum wage laws. Also, there are a number of States that have minimum wages that exceed the Federal minimum wage. At the same time, the presence of a sizable number of workers with wages below the prevailing Federal minimum wage does not necessarily indicate violations of the FLSA or applicable State laws, because there are numerous exclusions and exemptions to these minimum wage statutes. Dash indicates no data or data that do not meet publication criteria.

 

Last Modified Date: April 8, 2009