I was hired at $12/hr but my check stub is for 11.50/hr my company will not give me the corect pay rate can they do this?

An employer can reduce your wages as long as it notifies you of the reduction before you work the hours.  It cannot reduce your wages after you have worked the hours.  If you have some proof of your original offer of pay at $12.00, then you may want to consider filing a Texas Payday Act complaint with the Texas Workforce Commisison - Labor Law Department, they can require the employer to pay you the difference in the two rates for up to 180s back in time (assmuming you worked there that long).  However, be advised, if you worked additional days after you got your first paycheck at $11.50 you may be deemed to have accepted the wage cut.