Overtime Pay Laws in Texas

In Texas, governed by both the federal Fair Labor Standards Act (FLSA) and Texas overtime laws, overtime is defined as any hours worked beyond the standard 40-hour workweek.

Who Qualifies for Overtime Pay in Texas?

Most hourly employees in Texas qualify for overtime pay. However, certain salaried employees may also qualify unless they meet exemption criteria outlined by the Department of Labor, like executive, administrative, or professional roles.

Does Texas Have Daily Overtime Laws?

No, Texas does not have daily overtime laws. Overtime eligibility is based on hours worked in a week, not hours worked in a single day.

What Salary Is Exempt From Overtime?

In Texas, employees who earn a salary greater than a threshold set by the Department of Labor and meet specific duties tests, like managerial or specialized knowledge roles, may be exempt from receiving overtime pay.

Here are examples of roles in Texas and elsewhere that may fall under these exemptions.

Executive Exemption

The employee’s primary duty is managing the enterprise or a customarily recognized department/subdivision. Regularly supervises at least two full-time employees and has authority in hiring, firing, and promotions.

Example Roles

• General Manager of a retail store
• CEO or executive director of a corporation
• Department head in a large organization

Administrative Exemption

The employee’s primary duty is the performance of office or non-manual work directly related to management or general business operations, and their duties include the exercise of discretion and independent judgment with respect to significant matters.

Example Roles

• Human Resources Manager
• Public Relations Manager
• Compliance or financial services manager

Professional Exemption

This is often split between “learned professionals” and “creative professionals.” The primary duty requires advanced knowledge in a specialized field, typically acquired by prolonged academic study or the performance of work requiring invention, imagination, or talent in a recognized creative field.

Example Roles

• Doctors, lawyers, pharmacists (learned professionals)
• Artists, musicians, writers (creative professionals)

Computer Employee Exemption

The employee works as a systems analyst, computer programmer, software engineer, or similarly skilled worker in the computer field. Their primary duty consists of tasks like application creation, systems analysis, and program/system design.

Example Roles

• Software Developers
• Systems Architects
• IT Project Managers (in some cases)

Outside Sales Exemption

The employee’s primary duty is making sales or obtaining orders/contracts, and they are customarily and regularly engaged away from the employer’s place of business.

Example Roles

• Door-to-door salesperson
• Regional sales representative

Remember, just having one of these job titles doesn’t automatically make someone exempt. They must meet the salary threshold and the specific duties criteria to be considered exempt from overtime pay. If there’s a question about a role’s exempt status, consulting the FLSA guidelines, Texas overtime laws, or seeking legal counsel is recommended.

Is Overtime Taxed Differently?

Overtime is considered part of your taxable income. However, while the amount you earn from overtime may push you into a higher tax bracket, it doesn’t mean it’s taxed at a different rate. It’s incorporated into your regular income.

Can an Employee Refuse to Work Overtime?

Under labor laws in Texas, employers can typically require employees to work overtime. Refusing might lead to consequences unless there are valid reasons, such as health conditions or mandatory overtime violations.

Here are some potential repercussions employees might face:

• Written or Verbal Warnings: The employee could receive formal warnings, which could be noted in their personnel file. Accumulation of these warnings could influence future considerations like promotions or transfers.
• Denial of Raises or Bonuses: Refusing to work overtime could be seen as not being committed to the job, leading to the employer withholding raises or bonuses as a form of penalty.
• Loss of Preferred Shifts or Days Off: As a consequence, the employee might be scheduled for less favorable shifts or might not get preferred days off.
• Reduction in Hours: In retaliation, some employers might reduce the employee’s regular hours, impacting their overall pay.
• Mandatory Attendance in Training or Counseling: The employee might be asked to attend specific training sessions or counseling to understand the importance of company policies, including overtime.
• Suspension: For repeated refusals, an employee could be suspended without pay for a specified period.
• Termination: As a last resort, and especially if overtime is a critical part of the job and has been communicated as such, an employer might terminate an employee for consistently refusing to work the required overtime.
• Strained Relationships: Continuously declining overtime can strain relationships with supervisors and peers, especially if others have to pick up the slack.

It’s important for employees to understand their rights and the employer’s expectations regarding overtime. If someone believes they’re being treated unfairly or being asked to work overtime without proper compensation, they should consult the state’s labor laws or seek legal counsel.

What if My Employer Fails to Pay Me Overtime?

If your employer fails to pay you overtime, you have the right to file a complaint with the Texas Workforce Commission or the U.S. Department of Labor. They can investigate and potentially recover owed wages.

If your employer in Texas fails to pay you overtime, here’s a step-by-step guide on what you can do.

Document Everything

Before you proceed, ensure you have proper documentation. This includes pay stubs, timesheets, work schedules, and any communication related to overtime work or pay.

Speak to Your Employer

Sometimes, the failure to pay overtime might be a genuine oversight. Approach your HR department or supervisor to clarify the issue. If the company corrects the mistake, you’re good to go. If not, move to the next steps.

File a Complaint with the Texas Workforce Commission (TWC)

Visit the TWC website and locate the “Labor Law” section. Obtain and fill out the wage claim form. This will require details about your employment, the overtime you worked, and the wages you believe you’re owed. Submit the form along with all relevant documentation to the TWC.

U.S. Department of Labor (DOL) Route

If you prefer or if the issue isn’t resolved at the state level, you can also file a complaint with the Wage and Hour Division (WHD) of the U.S. DOL. Visit the WHD website and navigate to the section for filing a complaint. Follow their guidelines, which will be similar to the TWC but on a federal level.

Investigation

Whether you file with the TWC or DOL, an investigation will ensue. Investigators will review your claim, talk to both you and your employer, and gather the necessary evidence.

Outcome

If the investigation determines that you’re owed wages, the agency will instruct your employer to pay you the missing amount. If the employer refuses, the agency can pursue legal channels to enforce the payment.

Consider Legal Action

If you’re unsatisfied with the outcome from the TWC or DOL or believe you have a strong case, you can consult an employment attorney to discuss potential legal action against your employer.

Always remember it’s illegal for an employer to retaliate against an employee for exercising their rights under labor laws. If you face retaliation for filing a complaint, you should report that as well.

When Should I Contact a Lawyer?

If you believe your overtime rights have been violated or you’re navigating complex labor laws in Texas, it’s wise to consult with a professional. LegalMatch can connect you with an experienced Texas employment lawyer to ensure your rights are protected. Secure the legal help you deserve today!