Unpaid Wages in Texas: How to Recover What You Are Owed

The Fair Labor Standards Act (29 U.S.C. § 201 et seq.) establishes minimum wage ($7.25 per hour federally) and overtime requirements (1.5 times regular rate for hours over 40 per week) for most employers with employees engaged in interstate commerce. The FLSA applies to employers with gross annual sales or receipts of at least $500,000, or those engaged in certain industries like hospitals, schools, and government agencies. Employees covered by the FLSA can pursue unpaid wages claims for up to three years of back pay if willfulness is shown, or two years for non-willful violations.

The Equal Employment Opportunity Commission (EEOC) does not directly handle wage claims, but the Department of Labor Wage and Hour Division investigates FLSA violations. Remedies under the FLSA include back pay, an equal amount in liquidated damages, prejudgment interest, and reasonable attorney's fees and costs. Private employees can file lawsuits in federal court for FLSA violations, and collective actions (similar to class actions) are permitted under 29 U.S.C. § 216(b) when multiple employees are affected by the same wage violation.

Texas Labor Code § 61.001 et seq. governs wage payment obligations and provides a separate mechanism for wage claims beyond federal FLSA protections. Texas law requires employers to pay earned wages at regular pay periods (at least monthly, though more frequent is permissible) and prohibits unlawful deductions from wages. Texas applies to all employers in the state, regardless of size or interstate commerce status, making it broader in scope than the FLSA for very small businesses.

Under Texas law, employees have two years from the date of violation to file a wage claim with the Texas Workforce Commission, though claims for willful violations may be pursued for up to four years under the FLSA framework. Texas Labor Code § 61.021 establishes the right to sue for unpaid wages in district court; the state does not require employees to exhaust administrative remedies first, giving workers a choice between TWC administrative process or direct litigation. Remedies under Texas law include the unpaid wages owed, and prevailing employees may recover reasonable attorney's fees and court costs under § 61.021.

Texas does not provide a separate state minimum wage; employers must comply with the federal minimum wage of $7.25 per hour. However, Texas wage laws can provide stronger protections in some contexts—for example, Texas law applies to all workers regardless of employer size, whereas the FLSA exempts some small employers. Importantly, Texas law provides wage claims procedures that do not require proof of FLSA willfulness to recover, making state claims potentially easier to pursue for straightforward wage theft. Additionally, Texas wage laws protect workers classified as employees from certain types of illegal deductions that the FLSA might permit under narrow circumstances.

Texas wage laws do not apply to certain categories of workers. Independent contractors are excluded from wage protections under both Texas law and the FLSA; proper classification is critical and misclassification is common in wage disputes. Employees classified as exempt under the FLSA white-collar exemptions (executive, administrative, professional, outside sales, computer professionals) are not entitled to overtime pay, though they are still entitled to their promised salary paid regularly.

Employers may lawfully make deductions from wages in specific circumstances: for taxes, legally required withholdings, court-ordered garnishments, union dues, and insurance premiums (if authorized in writing). However, illegal deductions for uniforms, tools, equipment, or cash register shortages violate Texas law unless the employer can show the deduction would not reduce wages below minimum wage. At-will employment doctrine in Texas does not shield employers from wage theft liability; employers cannot avoid wage payment obligations simply because employment is at-will.

The FLSA contains narrow exemptions for certain industries and worker types: domestic service workers, agricultural workers, and certain seasonal workers may have limited FLSA coverage, though Texas law may still apply. Voluntary overtime is not protected from wage claims if the employer fails to pay for hours worked. Finally, if an employer files for bankruptcy, wage claims may be treated as unsecured claims and may not be paid in full, though employees have some priority status in bankruptcy proceedings.

Step 1 — Document Everything: Keep detailed records of all hours worked (dates, times, tasks performed), paystubs received, any communications with your employer about wage issues, emails or texts regarding compensation, and calculations of wages you believe are owed. Photograph or save copies of time sheets, badge records, or digital time-tracking systems showing the hours you worked. Write down the names of coworkers who can verify your hours and the specific dates when you were not paid or were underpaid.

Step 2 — Attempt Internal Resolution: Contact your employer's human resources or payroll department in writing (email is best for documentation) explaining the wage discrepancy, providing specific dates and amounts, and requesting correction within a reasonable timeframe (typically 10-15 business days). Keep a copy of this communication. If the employer responds or corrects the issue, document that. If the employer refuses, ignores your request, or retaliates against you for raising the issue, this strengthens your potential claim.

Step 3 — File a Wage Claim or Lawsuit: You have two options. Option A: File a wage complaint with the Texas Workforce Commission Wage and Hour Division at www.twc.texas.gov or call 1-888-452-4778. You must file within 30 days of learning of the violation. Provide your name, contact information, employer name and address, description of the wage violation, amount owed, and dates affected. TWC will investigate at no cost to you. Option B: Hire an employment attorney and file a civil lawsuit in Texas district court under Texas Labor Code § 61.021 (state claim) or federal district court under the FLSA (29 U.S.C. § 216). There is no filing deadline with your employer, but the two-year statute of limitations applies.

Step 4 — Expect the Investigation Process: If you file with TWC, an investigator will contact you and your employer. The investigator will request payroll records, time sheets, compensation agreements, and other documentation. You may be asked to provide written statements and evidence of hours worked. The investigation typically takes 30-60 days. The investigator will determine if a violation occurred and attempt to resolve the matter by negotiating repayment. If the employer does not cooperate or denies the claim, TWC will issue a determination; you can appeal to the Texas Labor and Workforce Development Board if you disagree.

Step 5 — Consult an Employment Attorney: Consider consulting an employment attorney before or immediately after filing with TWC if the amount owed is substantial (over $5,000), if your employer is retaliating against you, if wage violations are widespread among coworkers, or if you believe you have a strong case. Employment attorneys in Texas typically work on contingency for wage claims, meaning they are paid only if you recover funds. An attorney can evaluate whether you have claims under both Texas law and the FLSA, advise on collective action potential if other employees are affected, and represent you in settlement negotiations or litigation.