Texas Overtime Claim FAQ

Answers from Houston Employment Lawyers

Understanding some of the basics of Texas’s payday and overtime laws is crucial if you are going to enter a legal dispute with your employer. At Moore & Associates, we want our clients to be empowered so they stand a greater chance of winning their cases.  To this end, we have compiled a useful frequently asked questions list you should review if you have an overtime claim pending or in the works.  If you know that you need legal guidance and advocacy right away, you can also contact us online or call 713.581.9001 to request a free case evaluation.

Frequently asked questions about Texas unpaid overtime claims:

  1. What is the minimum overtime pay I can earn in Texas?
    The minimum wage in Texas (circa 2016) is $7.25 an hour and overtime requires employees to earn 1.5x their normal rate.  This equates to a minimum overtime rate of $10.88 per hour of overtime worked.
  2. What is the minimum cash wages in Texas?
    An employee that earns tips can have their cash wages reduced by their employer to “make up for the difference.” In Texas, the minimum cash wage is $2.13 per hour worked while receiving tips.  An employee is considered a “tipped employee” in Texas so long as they receive more than $20 in tips a month.
  3. What is misclassification?
    Some employees should be paid hourly wages but instead are paid through a salary or commission, either intentionally or mistakenly.  This is known as misclassification.  If a misclassified employee is correctly placed into hourly wages later, they may be entitled to all of the overtime they should have earned while misclassified.
  4. Are all salaried employees ineligible for overtime pay?
    No.  Independent contractors are usually salaried and usually do not qualify for overtime pay, but this is not a certainty.  Job descriptions and work duties may vary from employment to employment, enough so that a salaried worker actually should earn overtime.  Always check with an employment law attorney if you have the feeling you should be earning overtime but are not due to an employer's mistake.
  5. If I am eligible for overtime pay in Texas, when do I start earning it?
    Texas only uses a weekly overtime limit, which begins once an employee works more than 40 hours in one work week for one employer.  There is no daily overtime limit.  For example, a person could be schedule for three 12-hour shifts a week, completing 36 hours each work week, and not be eligible for any overtime despite the long workdays.