Texas Overtime Laws Explained: Know Your Legal  Obligations

Still have questions about Texas Overtime Laws?

We get asked about this a lot, so we want to break it down. 

This article dives into the intricacies of these laws, emphasizing employer obligations, calculating overtime pay, common violations, seeking legal guidance, and ensuring compliance.

In the complex area of employment law, understanding overtime regulations is important for both employers and employees. 

Let’s take a look!

What are Texas Overtime Laws?

Texas overtime laws govern how employers must compensate employees for working beyond a certain number of hours in a workweek. Texas utilizes the same laws as the federal Fair Labor Standards Act (FLSA).

Under Texas and FLSA overtime laws, non-exempt employees must be paid one and a half times their regular rate of pay for each hour worked beyond 40 hours in a workweek

Obligations for Employers

Under Texas overtime laws, employers have certain obligations to ensure legal compensation for their employees. 

Non-exempt employees, those eligible for overtime pay, must receive one and a half times their regular rate of pay for every hour worked beyond 40 hours in a workweek. 

Contrary to popular belief, overtime pay is not solely applicable to hourly workers. Salaried employees may also be entitled to overtime pay in some circumstances. 

The eligibility for overtime pay is dependent on exempt or non-exempt status, which is determined by the nature of job duties and the form of compensation. 

It must be noted that a job title alone does not determine eligibility for overtime pay. Therefore, understanding the job duties and salary is critical to determine the eligibility for overtime pay.

Calculating Overtime Pay

Calculating overtime pay correctly is essential to ensure employees receive proper compensation. Let’s break it down real quick:

If a nonexempt employee in Texas works more than 40 hours in a week, they are generally entitled to receive overtime pay. Overtime pay is one and a half times the employee’s regular rate of pay, which is the average earnings per hour during that workweek. 

For salaried workers, the regular hourly rate can be calculated by multiplying the monthly salary by 12, dividing by 52 weeks, and then dividing by the number of hours they must work in a week to earn their full salary.

Calculating overtime pay can be more complex in certain cases, for example, when factoring in certain bonuses. (The Texas Fiscal Management Division provides additional information on these calculations)

In the private sector, employers are required to provide overtime pay for extra hours worked. However, some employees of Texas state agencies may have the option to receive compensatory time off at a rate of 1.5 hours for every hour of overtime worked. This alternative must be in compliance with state laws and regulations.

Still have questions, reach out!

Common Violations & Consequences

​​Common violations of overtime laws by employers include misclassifying employees as exempt when they are actually non-exempt, failing to pay overtime for hours worked over 40 in a workweek, and not properly calculating the regular rate of pay for overtime purposes. 

Employers who do not adhere to overtime laws may face consequences such as lawsuits or legal actions from employees, investigations by the Department of Labor, the payment of back wages and liquidated damages, fines, and potential reputational damage. 

Compliance for Employers

To avoid potential legal issues, it is important for employers to ensure compliance with Texas overtime laws. Conducting regular audits of wage and hour practices can help identify any shortcomings and make necessary adjustments. 

It’s also important for employers to maintain accurate records of employee hours worked, which can serve as evidence of compliance if an issue arises.

Contact Our Frisco Employment Law Attorneys Today

For any questions or concerns regarding overtime laws or other employment-related issues, reach out to the Frisco Employment Law Attorneys at Simon | Paschal PLLC. 

Schedule a consultation today by calling (972) 893-9340 or contact us here!


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