For many Texas workers, understanding wage and overtime laws is essential to ensuring that they receive fair compensation. Employers are legally required to follow federal and state wage laws, yet wage theft and unpaid overtime remain common issues.
Whether you work in an hourly position, earn a salary and/or receive tips, it is important to know your rights. If your employer is not paying you what you are owed, you may have legal opportunities available to you that can help you to recover unpaid wages.
Minimum wage in Texas
Texas follows the federal minimum wage, which is currently $7.25 per hour under the Fair Labor Standards Act (FLSA). Employers cannot pay employees less than this amount unless a specific exemption applies.
For tipped employees, Texas allows employers to pay as little as $2.13 per hour, provided that tips bring the worker’s total earnings to at least $7.25 per hour. If an employee’s combined wages and tips do not meet the minimum wage requirement, the employer must make up the difference.
While Texas does not have a state-specific minimum wage, cities and counties cannot set a higher rate on their own. As a result, workers in Texas may be at a disadvantage compared to employees in states with higher minimum wages.
Overtime pay laws in Texas
Under federal law, employees who work more than 40 hours in a single workweek are entitled to overtime pay, which must be at least 1.5 times their regular hourly wage. For example, if an employee earns $15 per hour, their overtime rate should be $22.50 per hour for any hours worked beyond 40 in a week.
However, not all employees qualify for overtime pay. Some workers are exempt from overtime under federal law, including:
- Salaried employees earning at least $684 per week ($35,568 per year) who perform executive, administrative, or professional duties.
- Independent contractors, who are not considered employees under the law.
- Certain agricultural, transportation, and sales workers, depending on the nature of their job.
Employers often misclassify workers as exempt to avoid paying overtime. If you are being denied overtime pay but believe you qualify, you may have a valid legal claim.
Common wage violations in Texas
Some employers violate wage and overtime laws in ways that deprive employees of fair pay. Common violations include:
- Failing to pay for off-the-clock work – Employees required to work before or after their shifts without pay may be victims of wage theft.
- Misclassifying employees as independent contractors – Some employers incorrectly label workers as independent contractors to avoid paying overtime or benefits.
- Unlawfully deducting wages – Texas law restricts employers from making deductions that bring a worker’s pay below minimum wage.
- Ignoring overtime pay requirements – Some employers force employees to work extra hours but only pay them at their regular rate.
If you believe your employer is violating wage or overtime laws, you have the right to take legal action. Seeking personalized legal guidance is a good way to get started.