Overtime Pay Rules in Texas: Who Qualifies & What You Earn

The Fair Labor Standards Act (FLSA), 29 U.S.C. § 207, is the federal baseline and sole overtime standard in Texas. The FLSA applies to all employers with employees engaged in interstate commerce, with rare exceptions for certain government and charitable entities. Non-exempt employees must receive overtime compensation at a rate of not less than 1.5 times the employee's regular rate of pay for all hours worked in excess of 40 hours in a workweek. The FLSA defines "regular rate" to include all compensation except certain statutory exclusions (gifts, bonuses not tied to hours, payments for unused leave in some circumstances).

Four exemptions exist under the FLSA: executive, administrative, professional, and outside sales. These exemptions require both (1) a salary test (employee earns at least $35,568 per year as of 2024, adjusted annually) and (2) a job duties test showing the employee's primary responsibilities align with the exemption category. The Wage and Hour Division (WHD) of the U.S. Department of Labor enforces the FLSA. Remedies include unpaid overtime back wages, an equal amount as liquidated damages, attorney fees, and costs. Employees may file with the WHD or pursue private lawsuits within two years of the violation (three years if willful).

Texas has no state-specific overtime law separate from the federal FLSA. Texas Labor Code § 61.001 establishes that employees are entitled to the wages they earn and prohibits wage deductions except those required by law or authorized by the employee in writing. However, this provision does not create an independent overtime requirement and is interpreted to incorporate federal FLSA standards. Therefore, the federal FLSA 29 U.S.C. § 207 is the exclusive source of overtime protection in Texas.

Because Texas defers entirely to federal law, the state does not provide stronger overtime protections than the FLSA. All employers in Texas covered by the FLSA are subject to the same 1.5× overtime multiplier for hours over 40 per week, the same $35,568 salary threshold for exemptions (as adjusted annually by the Department of Labor), and the same executive, administrative, professional, and outside sales exemption categories.

Texas does recognize an important distinction: the state has no higher minimum wage than the federal minimum wage ($7.25 per hour as of 2024), and overtime is calculated on the regular rate of pay at that floor unless the employer voluntarily pays a higher rate. If an employer pays above minimum wage, the overtime rate is 1.5 times that actual regular rate. Texas also does not provide additional overtime protections for daily hours (e.g., hours over 8 in a single day), which some states like California do.

Filing overtime violations in Texas can occur at the state level through the Texas Workforce Commission Labor Law Hotline (which refers cases to the federal WHD) or directly with the federal Wage and Hour Division regional office in Dallas. Employees can also file private lawsuits in Texas state or federal court. The state courts apply federal FLSA standards without additional state-law overlay.

The FLSA exemptions, which apply uniformly in Texas, are the primary exception to overtime. The executive exemption requires the employee to manage other employees as their primary duty and exercise significant discretion over hiring and discipline; the salary test must be met. The administrative exemption requires the employee to perform office or administrative work directly related to business operations and exercise discretion and independent judgment; again, salary test applies. The professional exemption covers learned professionals (lawyers, doctors, engineers, teachers, accountants) whose work requires a bachelor's degree or higher and involves exercising discretion; it also covers creative professionals in certain fields.

The computer employee exemption applies to systems analysts, programmers, software engineers, and similar roles earning at least $27.63 per hour (or $48,568 per year under the salary basis test); these employees must work on computer systems or software design. The outside sales exemption covers employees whose primary duty is making sales or obtaining orders outside the employer's place of business; no salary minimum applies. Employees paid on commission in outside sales roles may be exempt even if hourly earnings fall below the salary threshold.

Additional exceptions include employees of certain retail and service establishments, employees in certain seasonal businesses, employees covered by collective bargaining agreements with different overtime standards (though rates cannot be lower than federal), and certain salaried workers in the motion picture industry. Texas recognizes that volunteers for non-profit organizations are not employees and thus not entitled to overtime. Additionally, sole proprietors and partners in partnerships are not employees and receive no overtime protection. Family members employed by a family business may also fall outside FLSA coverage in limited circumstances, though Texas courts apply federal standards strictly on this point.

Step 1: Document all overtime work. Keep records of actual hours worked each day, noting start and end times. Use a time clock, app, email timestamps, or written logs contemporaneously. Save pay stubs showing gross pay, regular rate, and any overtime compensation received. Calculate manually: multiply hours over 40 per week by 1.5 times your regular rate. Document what your employer told you about exempt status. Take screenshots of job postings or position descriptions showing job duties.

Step 2: Raise the issue internally. File a written complaint with your HR department or manager, specifying the dates, hours, and amounts owed. Request a response in writing. State clearly: "I am a non-exempt employee and have worked overtime hours for which I have not been paid at the rate of 1.5 times my regular rate as required by the Fair Labor Standards Act." Keep a copy for yourself and note the date you submitted it. Internal complaints create a record and sometimes prompt correction without litigation, though they are not required before filing externally.

Step 3: File with the government. You have two options: (a) File with the U.S. Department of Labor Wage and Hour Division (WHD). The Dallas regional office serves Texas. Locate it at dol.gov/agencies/whd or call 1-866-4-USDOL (1-866-487-3652). You can also file online at wh.gov using the online complaint form. Provide your name, employer name and address, dates worked, hours worked, and regular rate of pay. There is no filing fee and no deadline to file with WHD (they investigate violations that occurred within the past two years as a general practice). (b) Alternatively, call the Texas Workforce Commission Labor Law Hotline at 1-800-452-9595; they will refer you to WHD or provide guidance.

Step 4: Understand the investigation process. The WHD will contact your employer and request payroll records, time records, and information about your job classification. You will likely be asked for more detail about your duties and hours. The investigation typically takes 2-6 months. The WHD may hold an investigative conference with you and the employer present. If the WHD finds a violation, they will demand the employer pay back wages and may assess civil penalties. The WHD does not pursue liquidated damages (the extra amount equal to unpaid wages); however, you preserve your right to sue for those damages.

Step 5: Consult an attorney. Consider hiring an employment lawyer if your unpaid overtime exceeds $5,000 or if your employer retaliates. Overtime cases are often handled on contingency (attorney paid from settlement/judgment). Look for attorneys licensed in Texas specializing in wage and hour law. The Texas State Bar referral service (1-800-252-9690) can help. An attorney will advise you on filing a private lawsuit in Texas state or federal court, where you can recover unpaid overtime, liquidated damages (equal amount), attorney fees, and costs. The private lawsuit deadline is two years (or three years if the violation is willful).