Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

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What is the minimum hourly wage that can be paid to tipped employees in Texas?

  1. $2.13 an hour

  2. $3.00 an hour

  3. $4.25 an hour

  4. $5.00 an hour

The correct answer is: $2.13 an hour

The minimum hourly wage that can be paid to tipped employees in Texas is set at $2.13 per hour. This amount aligns with the federal minimum wage for tipped employees, which allows employers to pay a lower base wage to employees who receive tips, as long as the total earnings (base wage plus tips) meet or exceed the standard minimum wage. This structure is designed to support industries such as restaurants and hospitality, where tipping is customary. Understanding this wage structure is critical, particularly for real estate professionals who might encounter scenarios involving service staff or other related workforce segments. Familiarity with these labor laws ensures compliance and aids in advising clients appropriately, should they have questions regarding employment practices or labor costs associated with their businesses.