ATTORNEY ADVERTISING | Paul M. Botros, Esq. | Licensed in Texas and Florida

Texas Overtime Laws

Texas is home to booming tech hubs, massive healthcare systems, and the nation's energy capitalβ€”but it is also a hotspot for wage theft. From IT professionals in Austin misclassified as "exempt" to Oil & Gas workers denied overtime on day rates, thousands of Texans are underpaid every year. Whether you are a salaried manager, a day-rate laborer, or a healthcare worker facing automatic deductions, federal law likely protects your right to overtime pay.

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Quick Eligibility Check

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Calculate Your Unpaid Overtime

Get an estimate of what you're owed in just 60 seconds. This calculator is based on federal FLSA laws and includes liquidated damages (double your unpaid wages).

How Are You Paid?

$ /hour
hours
Must be your *paid* hours (can be under 40)
weeks
Default is 1 year (52 weeks). Adjust if different.

Did You Perform Work Off-the-Clock?

This includes work before/after shifts, during breaks, or from home that wasn't recorded or paid.

This calculation is an estimate based on applicable labor laws. Your actual recovery may vary based on state laws and specific circumstances.

Texas vs. Federal Overtime Laws

πŸ”‘ Key Fact: Texas Defaults to Federal Law

Texas does not have its own state overtime laws that exceed federal standards. This means most claims fall under the Fair Labor Standards Act (FLSA), which is good news: Federal law offers a 2-3 year statute of limitations, whereas the Texas Payday Law has a strict 180-day deadline.

What's the Same

  • Overtime required after 40 hours/week
  • Time-and-a-half (1.5x) pay rate
  • Salary Threshold: $684/week ($35,568/yr)
  • Day-rate workers must get overtime
  • Tipped Minimum Wage: $2.13/hr (Same as Federal)
  • No daily overtime requirement

⚠️ Critical Differences

  • Minimum Wage: stuck at $7.25/hour
  • Payday Law Deadline: Only 180 days!
  • Break Laws: No state-mandated rest breaks
  • Injunction Effect: The 2024 DOL Rule raising salary threshold to $58k was BLOCKED by a Texas court.

🚨 Common Texas Pay Schemes

Texas employers often use specific pay structures to misclassify workers and avoid paying overtime. These schemes are common in the Oil Patch, Austin Tech Hub, and statewide Retail/Service sectors.

πŸ›’οΈ The "Day Rate" Trap

Common in Oil & Gas (Roughnecks, Mud Loggers, Inspectors) and Construction. You are paid a flat fee per day (e.g., $300/day) regardless of hours worked.

The Violation: Paying a day rate does NOT exempt you from overtime! You are entitled to an extra half-time premium for every hour over 40. We have recovered millions for day-rate workers.

πŸ‘” The "Fake Manager" Salary

Common in Retail and Restaurants. You are paid a salary and given a title like "Assistant Manager," but you spend most of your time stocking shelves, cooking, or serving customers.

The Law: Job duties, not titles, determine overtime rights. If your primary duty is manual labor or customer service, you likely owe overtimeβ€”even if you are on a salary.

πŸ‘¨β€πŸ’» 1099 Misclassification

Common in Tech (Austin/Dallas) and Logistics. Employers label you an "Independent Contractor" (1099) to avoid paying payroll taxes and overtime, even though they control your schedule and work.

The Reality: If you work full-time hours for one company and follow their rules, you are likely an employee (W-2) misclassified as a contractor. You can recover unpaid overtime + tax penalties.

Key Texas Employment Laws

Texas Payday Law

Strict Deadlines: Only 180 days to file a wage claim with the Texas Workforce Commission. (Federal law gives you 2-3 years!)

Covers: All unpaid wages, commissions, bonuses, and other compensation.

Federal Overtime (FLSA)

Time and a Half: Required for all hours over 40 in a workweek.

No Daily Overtime: Texas follows federal law - no daily overtime requirement (unlike California).

Day Rate Workers

Common Issue: Oil & gas workers paid flat daily rates without overtime.

The Law: Day rate doesn't exempt you from overtime pay.

Recovery: Can claim years of unpaid overtime.

Texas Minimum Wage

State Rate: $7.25 per hour (same as federal)

Tipped Workers: $2.13 per hour + tips

Youth Workers: $4.25 for first 90 days

Final Paycheck Rules

Timing: Due by next regular payday after termination.

Commissions: Must be paid according to agreement terms.

Deductions: Limited to lawful deductions only.

Break & Meal Periods

No Required Breaks: Texas doesn't mandate breaks.

If Given: Short breaks under 20 minutes must be paid.

Lunch Deductions: Illegal if you work through lunch.

Common Texas Wage Violations

πŸ›’οΈ Oil & Gas Industry

Rampant violations in the Permian Basin and Eagle Ford Shale:

  • Day rate schemes for drilling crews
  • "Independent Contractor" misclassification for inspectors
  • Off-the-clock: Mandatory safety meetings unpaid
  • Drivers waiting time unpaid

πŸ—οΈ Construction

Affecting commercial and residential builders statewide:

  • Piece-rate pay (paid by sq ft) confusing overtime calc
  • Cash pay to avoid payroll taxes
  • Subcontractor misclassification
  • Day rates without overtime premium

🍽️ Restaurant & Service

Servers, bartenders, and cooks in Texas cities:

  • Tip Pool Violations: Managers taking tips
  • Work off-the-clock (cleaning, prep)
  • Salaried Kitchen Managers denied overtime
  • Automatic lunch deductions

πŸ₯ Healthcare

Nurses and home health aides:

  • Lunch break interruptions (working through lunch)
  • Shift differentials ignored for overtime rate
  • Home Health Aides misclassified as 1099
  • Mandatory overtime meetings unpaid

πŸ“¦ Manufacturing & Logistics

Warehouse and factory workers:

  • Donning and doffing (gear up) time unpaid
  • Security screening time unpaid
  • Production bonuses excluded from overtime rate

πŸ’» Tech & IT

Austin and Dallas tech sector issues:

  • IT Help Desk workers misclassified as "Exempt"
  • Contractors (1099) doing full-time employee work
  • "On-call" time unpaid

What You Can Recover

Under Federal FLSA Law

πŸ’° Unpaid Overtime Wages

Recover 100% of the wages you were owed, typically going back 2 years (or 3 years for willful violations).

βš–οΈ Liquidated Damages (Double)

Federal law typically awards an equal amount as "liquidated damages." If you are owed $10,000 in wages, you could recover $20,000 total.

πŸ“‹ Attorney Fees & Costs

The employer is required to pay your legal fees if you win. We take cases on a contingency fee basis β€” no fee unless we win.

Why Choose OwedOvertime.com in Texas?

Wage theft laws are complex, involving both the Texas Payday Law and the Federal Fair Labor Standards Act (FLSA). We have the federal court experience necessary to take on large companies in the Oil & Gas, Construction, and Tech industries.

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Frequently Asked Questions

Is mandatory overtime legal in Texas?

Yes, mandatory overtime is legal in Texas. Your employer can require you to work more than 40 hours per week, and can fire you for refusing (Texas is an at-will state). However, they must pay you time-and-a-half (1.5x) for every hour over 40. If your employer is forcing overtime without paying the overtime premium, that is a federal FLSA violation.

How is overtime calculated in Texas?

Texas follows federal FLSA rules: your employer adds up all hours worked in a single workweek (a fixed 168-hour period). Any hours over 40 must be paid at 1.5 times your regular rate. Your regular rate includes hourly pay plus non-discretionary bonuses, commissions, and shift premiums. Employers cannot average hours across two weeks to avoid overtime, and Texas has no daily overtime requirement.

How much is overtime pay in Texas?

Overtime pay in Texas is 1.5 times your regular hourly rate. At the federal minimum wage of $7.25/hr, the minimum overtime rate is $10.88/hr. If you earn $25/hr, your overtime rate is $37.50/hr. If you are paid a salary, your regular rate is your weekly salary divided by the hours the salary is meant to cover (usually 40), then multiplied by 1.5.

Is it illegal to not pay overtime in Texas?

Yes. If you are a non-exempt employee working over 40 hours per week, your employer must pay overtime under federal law. Violating this entitles you to back pay plus liquidated damages (doubling your recovery) plus attorney fees. This applies whether you are paid hourly, salary, day rate, or piece rate.

Does a day rate exempt me from overtime in Texas?

No. In Texas oil & gas (Midland, Odessa, Permian Basin) and construction, flat day rates of $150-$400/day are common, but they do NOT exempt your employer from paying overtime. Under FLSA, day-rate workers are entitled to a 0.5x overtime premium on top of their effective hourly rate for every hour over 40. This is one of the most common violations in the Permian Basin.

What are Texas independent contractor misclassification laws?

Texas uses the federal "economic reality" test to determine if you are truly an independent contractor or an employee. If your employer controls when, where, and how you work, provides tools and equipment, and you work exclusively for them, you are likely an employee entitled to overtime β€” regardless of any "1099" or "contractor" label. Misclassified workers can recover unpaid overtime, benefits, and damages.

How far back can I claim unpaid overtime in Texas?

Under federal FLSA: 2 years for standard violations, 3 years for willful violations. The Texas Payday Law has a separate 180-day deadline for regular wage claims. We typically file under FLSA for the longer lookback and double damages.

What is the salary threshold for overtime in Texas for 2026?

The active threshold is $684 per week ($35,568/year). A Texas federal court blocked the DOL rule that would have raised this to $58,656. Most workers earning less than $35,568/year are entitled to overtime regardless of job title. Even above this threshold, you must meet the "duties test" β€” simply having a manager title does not make you exempt.

Can I recover double damages for unpaid overtime in Texas?

Yes. Under federal FLSA, you can recover liquidated damages equal to 100% of your unpaid wages β€” effectively doubling your recovery. Plus attorney fees and costs paid by the employer. For example, if you are owed $10,000 in unpaid overtime, your total recovery could be $20,000 plus legal fees.

How does overtime work for salaried employees in Texas?

Being salaried does not automatically exempt you from overtime. You must earn at least $684/week AND your primary duties must be executive, administrative, or professional in nature. Many "assistant managers," "team leads," and "supervisors" are misclassified β€” if you spend most of your time doing the same work as hourly staff, you likely qualify for overtime.

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