(650) 332-8623Texas Overtime Laws: Your Guide to Rates, Statutes, Calculations, and More (2025)
This guide has everything you need to know about Texas’ overtime laws for 2025, including rates, thresholds, statutes, and much more.
Texas Overtime Rates and Statutes
1.5x
Texas' Primary Overtime Pay Rate
Like most states, Texas follows the federal standard for overtime. Employees are entitled to overtime pay at 1.5 times their regular rate of pay for any hours worked over 40 in a workweek. This is consistent with the Fair Labor Standards Act (FLSA), which governs overtime rules in Texas.
40 hours / week
Threshold to Receive Overtime in Texas
In Texas, employees are eligible for overtime pay after working more than 40 hours in a single workweek, as required by the Fair Labor Standards Act (FLSA). A workweek under the FLSA is defined as a fixed, recurring period of seven consecutive days.
The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest, unless the total hours worked during the week exceed 40. In other words, simply working on a weekend or holiday doesn’t automatically trigger overtime pay—it’s the total weekly hours that matter.
Recently, Judge Sean D. Jordan of the U.S. District Court for the Eastern District of Texas blocked a Biden administration rule that would have expanded overtime eligibility.
The rule sought to raise the salary threshold for overtime pay from around $35,000 to almost $44,000, with a second increase to nearly $59,000 set for 2025. It also included a provision for automatic updates every three years starting in 2027.
With the ruling, the threshold reverts to $35,500, the level set in 2019 under the Trump administration.
No Daily Overtime
Daily Overtime Rules in Texas
Texas does not mandate overtime pay for hours worked beyond a certain number in a single day. Unlike some states, Texas adheres to the federal standard, which requires overtime pay only when an employee works more than 40 hours in a single workweek.
This means that even if an employee works more than 8 or 12 hours in a single day, they are not entitled to daily overtime unless their total hours for the workweek exceed 40.
Employers can legally require employees to work long shifts, provided non-exempt employees receive overtime pay for any hours worked over 40 in that week.
29 U.S.C. § 207
The Main Overtime Statute(s) in Texas
Texas overtime laws are governed by the federal Fair Labor Standards Act (FLSA), specifically 29 U.S.C. § 207, which outlines the requirements for overtime pay. This statute defines key aspects of overtime, including the 40-hour workweek threshold and the 1.5x overtime pay rate. Employers must comply with these rules unless an employee is classified as exempt based on their job duties and salary.
Other relevant sections under the FLSA include:
- 29 U.S.C. § 213: Lists exemptions for specific roles and industries.
- 29 C.F.R. Part 541: Provides detailed criteria for determining exempt status based on salary and job duties.
For state employees, Texas follows Tex. Gov’t Code § 659.015, which governs overtime compensation within state agencies. Under this statute, state employees who work more than 40 hours in a workweek may receive compensatory time off at a rate of 1.5 hours for each hour of overtime or overtime pay at 1.5 times their regular rate, depending on agency policies.
WHD
The Wage and Hour Division is Responsible for Enforcing Overtime Laws in Texas
In Texas, the U.S. Department of Labor’s Wage and Hour Division (WHD) is responsible for enforcing federal overtime laws under the Fair Labor Standards Act (FLSA).
WHD handles complaints, conducts investigations, and ensures that employers comply with overtime pay requirements.
The division also provides resources to help employers understand their obligations and assists employees in recovering unpaid overtime. If an employer fails to pay proper overtime wages, WHD can step in to seek back wages and, in some cases, impose penalties.
How to Calculate Overtime Pay in Texas
In Texas, overtime pay is calculated by determining an employee’s regular rate of pay and applying the 1.5x multiplier for hours worked over 40 in a workweek.
The Fair Labor Standards Act (FLSA) defines the workweek as a fixed period of seven consecutive days, and overtime is based solely on hours worked in that period. Paid leave such as holidays or vacation does not count as “hours worked” when calculating overtime eligibility.
Here’s a step-by-step guide with examples tailored to different pay structures:
1. Determine the Regular Rate of Pay
The regular rate includes all forms of cash compensation like hourly wages, salaries, commissions, and non-discretionary bonuses. However, reimbursable expenses and paid leave are excluded.
The formula for calculating regular rate of pay is:
Regular Rate = Total Weekly Earnings / Total Hours Worked (excluding paid leave)
2. Calculate Overtime Pay
Once you have the regular rate, multiply it by 1.5 to determine the overtime rate. Then, multiply that by the total overtime hours worked beyond 40.
Computation Examples
Example 1: Hourly Employee with No Additional Earnings
This example applies to an employee who works extra hours but doesn’t receive bonuses or commissions.
An employee earns $18/hour and works 50 hours in a week. Under FLSA rules, the first 40 hours are paid at the regular rate, and the additional 10 hours are considered overtime.
- Regular Earnings = $18 x 40 = $720
- Overtime Rate = $18 x 1.5 = $27
- Overtime Pay = 10 x $27 = $270
- Total Weekly Pay = $720 + $270 = $990
Example 2: Hourly Employee with a Weekly Bonus
This example demonstrates how a non-discretionary bonus impacts the calculation of overtime pay. Non-discretionary bonuses must be included in total compensation to determine the regular rate of pay.
An employee earns $12/hour, works 46 hours in a week, and receives a $46 production bonus. Here’s how their total pay is calculated:
1. First, calculate the regular weekly earnings without the bonus. The employee works 46 hours, with the first 40 hours paid at the regular hourly rate:
40 hours x $12/hour = $480
2. The 6 overtime hours are initially calculated at the regular hourly rate:
6 hours x $12/hour = $72
3. Total pay before adding the bonus:
$480 + $72 = $552
4. Next, add the bonus to the weekly earnings:
$552 + $46 = $598
5. To determine the regular rate of pay, divide the total weekly earnings (including the bonus) by the total hours worked:
$598 ÷ 46 hours = $13/hour
6. Overtime is paid at 1.5 times the regular hourly rate:
$13 x 1.5 = $19.50/hour
7. The employee worked 6 overtime hours, so overtime pay is:
6 hours x $19.50 = $117
8. Finally, calculate the total weekly pay by adding the regular pay and overtime pay:
- Regular pay: 40 hours x $13 = $520
- Overtime pay: 6 hours x $19.50 = $117
- Total weekly pay = $520 + $117 = $637
The production bonus increases the regular rate of pay, which also raises the overtime rate. As a result, the employee’s total pay for the week is $637, accounting for both regular and overtime hours.
Example 3: Salaried Non-Exempt Employee
Salaried employees who are non-exempt under the FLSA are also entitled to overtime. To calculate overtime, their weekly salary must first be converted into an hourly rate.
For example, an employee earns a $1,000 weekly salary for 40 hours and works 48 hours in a week. The salary covers the first 40 hours, and overtime is calculated for the additional 8 hours.
- Regular Rate = $1,000 / 40 = $25/hour
- Overtime Rate = $25 x 1.5 = $37.50
- Overtime Pay = 8 x $37.50 = $300
- Total Weekly Pay = $1,000 + $300 = $1,300
Example 4: Pieceworkers
For pieceworkers, the regular rate of pay is calculated by dividing total weekly earnings—including piece rate earnings, production bonuses, and compensation for non-productive time such as waiting—by the total hours worked.
Overtime pay is then calculated by adding half the regular rate to hours worked beyond 40.
Let’s say an employee works 50 hours in a week and earns the following:
- $491 from piece-rate work (46 hours of productive work)
- $32 for 4 hours of waiting time at $8/hour
Total earnings for the week: $491 + $32 = $523
1. Calculate the regular rate of pay:
- Regular Rate = Total Weekly Earnings ÷ Total Hours Worked
- Regular Rate = $523 ÷ 50 = $10.46/hour
2. Calculate overtime pay:
- Overtime Pay = 10 overtime hours x (Regular Rate ÷ 2)
- Overtime Pay = 10 x ($10.46 ÷ 2) = $52.30
3. Total Weekly Pay:
- Total Weekly Pay = Total Weekly Earnings + Overtime Pay
- Total Weekly Pay = $523 + $52.30 = $575.30
This means the employee’s total compensation for the week, including overtime, is $575.30, which reflects 40 hours at the regular rate and 10 overtime hours compensated at 1.5x the regular rate.
Example 5: Commissioned Employees
Employees earning commissions must have their total weekly earnings, including commission, divided by hours worked to determine the regular rate of pay. Overtime is calculated at half the regular rate for hours beyond 40.
If the commission is paid on a delayed basis, it must be allocated to the appropriate workweeks, and overtime recalculated accordingly.
Example: An employee earns $400 in base pay and $300 in commission for a total of $700 in a week. They work 50 hours.
1. Determine the regular rate:
- Regular Rate = Total Weekly Earnings ÷ Total Hours Worked
- Regular Rate = $700 ÷ 50 = $14/hour
2. Calculate overtime pay:
The employee worked 10 overtime hours, so overtime pay is calculated as:
Overtime Pay = 10 hours x ($14 ÷ 2) = $70
3. Total Weekly Pay:
Straight-Time Earnings + Overtime Pay = $700 + $70 = $770
This ensures that the employee is compensated appropriately under FLSA rules.
Looking for other state-specific labor and overtime laws? Check out these guides:
Who's Eligible For Overtime Pay in Texas?
- Employees paid by the hour are generally entitled to overtime. Their regular rate of pay is calculated directly from their hourly wage.
- Regardless of their job type, hourly workers must be compensated for overtime hours worked beyond 40 in a week.
Salaried workers who earn below $684 per week or fail to meet the job duties test (see exempt categories below) are eligible for overtime pay.
In other words, unless the employee is not specifically exempt from FLSA overtime provisions, the employer must pay overtime regardless of whether the worker is paid on a salary, piece rate, commission, fee, or daily rate basis.
- Manual laborers and skilled tradespeople, such as construction workers, electricians, plumbers, and mechanics, are classified as nonexempt.
- These workers engage in physical tasks requiring skill, and even if they are highly paid, they are entitled to overtime.
Domestic workers such as housekeepers, nannies, or cooks who do not live in the household where they work are entitled to overtime pay under the FLSA. This is because their duties, often repetitive and time-intensive, align closely with those of other nonexempt workers.
Live-in domestic workers, however, may be exempt from overtime but must still receive minimum wage.
- Police officers, firefighters, paramedics, and similar workers are nonexempt under the FLSA.
- Their primary duties involve emergency response, public safety, and law enforcement. Regardless of rank or pay, these roles qualify for overtime because of their high-risk, hands-on nature.
Nurses are generally nonexempt and entitled to overtime. However, Texas Health and Safety Code Section 258.003 imposes additional rules on mandatory overtime:
- Employers cannot require RNs or LVNs to work beyond their pre-scheduled shifts unless it’s a disaster or emergency.
- For example, a nurse scheduled for 50 hours a week must be paid overtime for hours over 40, but they cannot be forced to work beyond their scheduled shifts unless an emergency arises.
- Must be paid on a salary basis of at least $684 per week.
- Primary duty involves managing the enterprise or a recognized department.
- Must regularly supervise at least two full-time employees.
- They must have the authority to hire or fire employees or have their recommendations carry significant weight.
- Must be paid $684 per week on a salary or fee basis.
- Primary duty involves office or non-manual work related to business operations or management.
- Must exercise significant discretion and independent judgment on matters of significance, such as policy development or major business decisions.
- Includes learned professionals who perform work requiring advanced knowledge in fields like law, medicine, or engineering, usually acquired through prolonged instruction.
- Creative professionals are also exempt if their primary duty involves work requiring originality, invention, or talent in artistic fields such as music, writing, or graphic design.
- Both categories must earn at least $684 per week on a salary or fee basis.
- To qualify, computer employees must be paid $684 per week on a salary basis or at least $27.63 per hour.
- Their roles must include systems analysis, software programming, or other highly technical duties.
- General IT support or helpdesk roles do not meet the exemption criteria.
- These employees are exempt if their primary duty is making sales or obtaining contracts for services.
- They must regularly work away from the employer’s primary place of business.
- There is no minimum salary requirement for this exemption.
Employees earning a total annual compensation of $107,432 or more are exempt if they regularly perform at least one duty of an executive, administrative, or professional employee.
The compensation must include at least $684 per week paid on a salary or fee basis.
Employees working at amusement parks, water parks, ski resorts, or similar facilities are exempt from overtime if the establishment operates for fewer than seven months annually or has significantly higher revenues in peak months compared to off-season months (Section 13(a)(3)).
This exemption acknowledges the unique financial and operational challenges of seasonal businesses.
If the employer uses fewer than 500 man-days of labor (Section 13(a)(6)) in any calendar quarter of the preceding year, those workers are exempt.
Other exemptions include family members working on the farm or certain hand-harvest laborers paid on a piece-rate basis.
Certain industries have unique exemptions from overtime requirements under the FLSA. These exemptions acknowledge the operational realities and financial constraints of these sectors. Below is a summary of some key exemptions:
1. Seamen on Non-American Vessels: Workers employed on vessels registered outside the U.S. are exempt from overtime to align with international maritime labor practices.
2. Drivers Paid on Trip Rates: Local delivery drivers compensated based on trip or delivery rates are exempt, provided their pay structure discourages excessive hours.
3. Small Newspaper Employees: Workers at newspapers with circulations under 4,000 copies, primarily distributed locally, are exempt to support smaller, community-focused operations.
4. Taxicab Drivers: These employees are exempt due to the flexible and variable nature of their work schedules.
5. Motion Picture Theater Employees: Ushers, projectionists, and other movie theater staff are exempt due to the unique demands of the entertainment industry.
6. Radio and Television Station Employees: Announcers, news editors, and engineers in smaller markets (populations under 100,000) are exempt to help small stations manage labor costs.
7. Forestry Workers: Employees involved in planting, tending, or transporting forestry products for small employers (fewer than 8 workers) are exempt.
8. Cotton and Sugar Processing Employees: Workers in cotton ginning or sugar beet/cane processing operations are exempt during peak production periods, up to 14 workweeks annually.
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TX vs. Federal Overtime Laws Compared
TexasOvertime Threshold
Texas does not have state-specific overtime laws, so it follows the federal standard. Non-exempt employees in Texas are entitled to overtime pay at 1.5 times their regular hourly rate for any hours worked beyond 40 in a single workweek. Unlike some states, Texas does not have a daily overtime threshold, meaning employees do not qualify for overtime pay based on hours worked in a single day unless the weekly total exceeds 40 hours.
Federal Overtime Threshold
The federal Fair Labor Standards Act (FLSA) sets the standard for overtime eligibility nationwide. Under the FLSA, non-exempt employees must receive overtime pay for any hours worked over 40 in a single workweek. The workweek is defined as a fixed period of 168 hours, or seven consecutive 24-hour days, which may begin on any day and at any time set by the employer.
1.5x Texas Overtime Rate
Texas adheres to the federal overtime rate standard. Non-exempt employees must be paid 1.5 times their regular hourly rate for any hours worked beyond 40 in a single workweek. This applies regardless of the employee’s pay structure, whether hourly, salary, piece rate, or commission.
1.5xFederal Overtime Rate
Under the Fair Labor Standards Act (FLSA), the federal overtime rate is set at 1.5 times the employee’s regular rate of pay. This rate applies uniformly across all states for non-exempt employees working more than 40 hours in a workweek. The regular rate includes all earnings such as hourly pay, commissions, and most bonuses, divided by the total hours worked in a week.
TexasOvertime Threshold for Salaried Employees
Texas does not have separate overtime thresholds for salaried employees beyond those set by federal law. Salaried employees in Texas are subject to the same 40-hour weekly overtime threshold as hourly workers unless they qualify for an exemption under the Fair Labor Standards Act (FLSA).
Key Takeaway: Texas defers entirely to federal law for overtime eligibility and thresholds for salaried workers.
Federal Overtime Threshold for Salaried Employees
Under the FLSA, salaried employees earning less than $684 per week ($35,568 annually) are generally eligible for overtime pay if they work more than 40 hours in a workweek. Employees earning above this threshold may still be eligible unless they meet the duties test for exempt roles such as executive, administrative, or professional positions.
TXRoles Exempt from Overtime
Texas does not have its own overtime exemption criteria. Instead, it fully adheres to the federal guidelines under the Fair Labor Standards Act (FLSA). As a result, roles exempt from overtime in Texas are those defined by federal law, including executive, administrative, professional, outside sales, and certain computer employees.
FederalRoles Exempt from Overtime
Under the FLSA, certain roles are exempt from overtime if they meet specific salary and duties tests. They include (among others):
- Executive Employees: Primary duty involves managing a department and supervising at least two employees.
- Administrative Employees: Perform office or non-manual work related to management policies or business operations, requiring discretion and judgment.
- Professional Employees: Work requires advanced knowledge in a field of science or learning (e.g., doctors, lawyers) or creativity in an artistic field.
Misconceptions About TX Overtime Laws
Many employers mistakenly believe that overtime laws only apply to workers earning hourly wages.
Overtime requirements apply to any non-exempt employee, regardless of whether they are paid hourly, on a salary, piece rate, commission, fee, or daily rate.
Some employees think they’re entitled to overtime if they work more than 8 hours in a single day.
Texas does not mandate daily overtime. Employees are only entitled to overtime if they work more than 40 hours in a single workweek.
Private-sector employees sometimes expect to take compensatory (comp) time off instead of receiving overtime pay.
Private employers in Texas cannot offer comp time in lieu of overtime pay. However, public-sector employers may provide comp time under specific conditions.
Some employers assume bonuses or commissions are separate from overtime pay calculations.
Nondiscretionary bonuses and commissions must be included in the regular rate of pay, which directly impacts overtime. Only discretionary bonuses, such as gifts, are excluded.
It’s often assumed that part-time employees cannot earn overtime.
Both part-time and full-time employees are entitled to overtime pay if they work more than 40 hours in a workweek. However, employers may set their own definitions for full-time work hours for benefits eligibility.
It’s a common myth that employees can voluntarily waive their right to overtime through a written agreement or request.
The FLSA mandates overtime pay for eligible employees, and no written waiver can override this requirement. Employers must compensate overtime regardless of any agreement to the contrary.
Employers often believe they aren’t obligated to pay overtime for unauthorized work performed by employees.
Unauthorized work is still work. If a non-exempt employee works beyond 40 hours, even without prior approval, they must receive overtime compensation.
Some employers believe they can average overtime hours across two weeks, especially for employees on biweekly pay schedules.
Averaging hours over multiple weeks is illegal. Overtime must be calculated on a weekly basis. Employees are entitled to overtime pay for any hours worked over 40 in a single workweek.
It’s often assumed that meetings and training don’t qualify as compensable time, especially if they occur outside normal working hours.
Job-related training sessions and mandatory meetings are compensable if they occur beyond the regular 40-hour workweek. Employers must include these hours when calculating overtime.
Some employers believe they don’t need to compensate overtime for work performed at home.
Under the FLSA, work performed at home is compensable if it contributes to the total hours worked. Any workweek exceeding 40 hours, including at-home tasks, qualifies for overtime.
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Penalties for Overtime Noncompliance in TX
2x Unpaid OvertimeFAILURE TO PAY OVERTIME
Under federal law, employers who fail to pay overtime may be liable for both unpaid wages and an additional equal amount in liquidated damages (29 C.F.R. § 790.22(a)), effectively doubling the owed compensation. This applies unless the employer can demonstrate that the violation was made in good faith and based on reasonable grounds.
Legal Fees RecoveryADDITIONAL COMPENSATORY DAMAGES
Employees who win an unpaid overtime case can recover their attorneys’ fees, sometimes exceeding the amount of back wages owed (29 U.S.C. § 216(b)). Employers may also face collective actions, where multiple employees join a lawsuit, greatly increasing the financial risk.
$1,100/violationREPEATED OR WILLFUL OVERTIME VIOLATIONS
Employers who repeatedly or willfully violate the FLSA’s overtime provisions may face civil penalties of up to $1,100 per violation (29 U.S.C. § 216(e)). This penalty applies in addition to the payment of unpaid wages and liquidated damages.
Navigating Overtime Requirements in Texas
Know What to Do as an Employer
- Understand Texas and federal overtime laws. Familiarize yourself with the Fair Labor Standards Act (FLSA) and how it applies in Texas, including rules on exempt vs. non-exempt employees and overtime pay thresholds.
- Use accurate time-tracking systems. Implement reliable methods for tracking employee work hours, ensuring all overtime is properly recorded and compensated.
- Incorporate bonuses and commissions in overtime calculations. Include non-discretionary bonuses and commissions when determining an employee’s regular rate of pay.
- Audit payroll regularly. Review payroll practices periodically to catch errors in overtime calculations and payments.
- Maintain comprehensive records. Keep detailed records of hours worked, overtime pay, and employee classifications for at least three years, as required by law.
- Provide clear policies on overtime. Develop and distribute written policies about how and when overtime will be paid to avoid misunderstandings.
- Seek professional guidance when necessary. Consult labor law experts or legal counsel for advice on complex overtime compliance issues.
Know Your Rights as a Worker
- Understand your classification. Know whether your role is exempt or non-exempt under the Fair Labor Standards Act (FLSA), as this determines your eligibility for overtime pay.
- Track your own work hours. Maintain personal records of hours worked, including overtime, to compare with your employer’s payroll records.
- Know how overtime pay is calculated. Be aware that non-discretionary bonuses and commissions should be included in your regular rate of pay when calculating overtime.
- Familiarize yourself with Texas and federal overtime laws. Learn about your rights through trusted resources like the Texas Workforce Commission and the U.S. Department of Labor.
- Address pay concerns with your employer. If you notice discrepancies in your overtime pay, raise the issue directly with your employer to resolve it promptly.
- Seek external support if needed. If your concerns are not resolved internally, consider contacting the Texas Workforce Commission or a labor attorney for assistance.
Common Overtime Pay Challenges for Employers in Texas
1. Misclassification of Employees
Employers may misclassify workers as exempt when they should be non-exempt, resulting in unpaid overtime. This misclassification often involves misunderstanding the criteria for roles like administrative or professional employees.
2. Failure to Include All Earnings in Overtime Calculations
Bonuses and commissions must be factored into the regular rate of pay for overtime calculations. Employers often mistakenly exclude these, leading to underpayment.
3. Inaccurate Timekeeping Practices
Inadequate tracking of employee hours, including missed or unrecorded overtime, can result in noncompliance. Employers may face disputes or penalties if time records are incomplete or inaccurate.
4. Assuming Comp Time is a Legal Alternative
Private sector employers sometimes incorrectly offer compensatory time (comp time) instead of overtime pay. Under the FLSA, this practice is generally not allowed.
5. Misunderstanding Overtime Thresholds
Some employers mistakenly believe Texas has daily overtime laws or apply federal standards incorrectly, such as misunderstanding the 40-hour workweek rule.
6. Ignoring Good Faith Requirements in Wage Disputes
Employers who fail to act in good faith when wage disputes arise can face liquidated damages, doubling the owed overtime.
General Best Practices for Texas Overtime Laws
1. Classify Employees Correctly
Ensure employees are properly categorized as exempt or non-exempt under FLSA guidelines. Misclassification can lead to significant fines and back pay obligations. Regular audits and legal consultations help prevent errors.
2. Accurately Track Employee Hours
Use reliable timekeeping systems to record all hours worked, including overtime. This ensures compliance and provides essential records in case of disputes or audits.
3. Include All Pay in Overtime Calculations
Factor in nondiscretionary bonuses and commissions when calculating the regular rate of pay for overtime. Excluding these can lead to underpayment and potential penalties.
4. Stay Updated on Federal and State Requirements
Texas adheres to federal overtime laws, but changes to FLSA regulations can impact compliance. Employers should regularly review legal updates and adjust their practices accordingly.
5. Train Supervisors and Payroll Staff
Educate managers and payroll personnel on overtime rules and compliance practices. This helps prevent inadvertent violations and ensures accurate payroll processing.
6. Develop Clear Overtime Policies
Establish and communicate written overtime policies to employees. Clear guidelines help set expectations and reduce misunderstandings about overtime eligibility and pay.
7. Conduct Regular Compliance Audits
Periodically review payroll and timekeeping records to identify discrepancies and ensure ongoing compliance with overtime regulations.
Final Thoughts
Texas overtime laws, though rooted in federal standards, demand careful attention to employee classification, accurate recordkeeping, and proper pay calculations.
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Yes, overtime pay is mandatory in Texas for non-exempt employees as defined by the Fair Labor Standards Act (FLSA). Employers must pay these employees 1.5 times their regular hourly rate for any hours worked beyond 40 in a workweek.
Texas does not have separate state laws governing overtime, so it adheres strictly to federal standards. Non-compliance can result in penalties, including back pay, liquidated damages, and additional fines. The requirement applies regardless of whether an employee is paid hourly, on a salary, or through commission, as long as they do not qualify as exempt under FLSA guidelines.
Workers who believe they have not received the overtime pay they are entitled to can file a complaint with the U.S. Department of Labor (DOL) or take legal action against their employer. Employers should stay informed and implement accurate time tracking to ensure compliance with these overtime rules.
In Texas, overtime pay is required only after an employee works more than 40 hours in a workweek, not after 8 hours in a single day.
Unlike some states, such as California, which mandates daily overtime, Texas follows the federal FLSA guidelines that focus on weekly thresholds. This means an employee could work 10 hours per day for four days (totaling 40 hours) and not be eligible for overtime. However, if that same employee works an additional 2 hours on the fifth day, they would be entitled to overtime pay for the 2 extra hours.
This system provides flexibility in scheduling for employers but requires careful tracking of total weekly hours. Misunderstanding this rule can lead to payroll errors and potential legal action. Employers and employees should be clear about how overtime is calculated to avoid disputes.
Yes, it is illegal for employers in Texas to refuse overtime pay to non-exempt employees who work more than 40 hours in a workweek. This violation falls under the federal Fair Labor Standards Act (FLSA), which mandates overtime compensation at 1.5 times the regular rate of pay.
Employers who fail to comply can face significant legal consequences, including lawsuits and penalties enforced by the U.S. Department of Labor (DOL). Employees who suspect they are not receiving proper overtime compensation can file a complaint with the DOL or take legal action to recover unpaid wages.
Additionally, employers acting in bad faith may be liable for liquidated damages equal to the unpaid overtime and may also have to cover the employee’s legal fees. Businesses should implement accurate time tracking and payroll systems to ensure compliance and avoid costly penalties.
Certain employees in Texas are exempt from overtime pay under the FLSA if they meet specific criteria. Common exemptions include workers in executive, administrative, and professional roles, as well as those in computer-related occupations.
For these employees, exemptions depend on their job duties and salary level, which must exceed $684 per week. In addition, outside sales employees and some highly compensated employees earning more than $107,432 annually may also qualify as exempt. Other exempt roles include farmworkers, seamen, and certain commissioned salespeople.
Exemptions are strictly defined, and misclassification can lead to significant penalties. Employers must carefully evaluate employee roles and consult legal experts if necessary to ensure they comply with overtime laws.
Under Texas overtime laws, which follow federal FLSA standards, non-exempt employees are entitled to an overtime rate of 1.5 times their regular rate of pay for hours worked beyond 40 in a workweek. This regular rate includes not only hourly wages but also nondiscretionary bonuses and commissions.
Employers must calculate overtime based on total earnings to ensure compliance. Failing to properly calculate overtime can result in penalties, including back pay and liquidated damages.
For example, if an employee earns a regular hourly wage of $20 and works 45 hours in a week, they are entitled to an overtime rate of $30 per hour for the 5 overtime hours. Employers must ensure they follow this rule to avoid legal consequences and protect employee rights.
