Texas Labor Laws

Minimum Wage

Texas follows the Federal minimum wage:

• $6.55 per hour from July 24, 2008 to July 23, 2009

• $7.25 per hour after July 24, 2009

Overtime Regulations

Texas follows the Federal law. Overtime pay of time and a half is required for all non-exempt employees for hours worked over 40 during a workweek.

Specific Exemptions

Texas does not have any state specific exemptions to the overtime pay requirements. Federal law exemptions apply, the most common of which include:

• Executive

• Professional

• Administrative

• Computer Employee

Holidays / Vacation

Texas does not have a state law requiring additional pay for work done on holidays or weekends. Employers are also not required to offer vacation, holiday or other pay for time not worked. These policies are at the discretion of the employer.

Meal Breaks / Rest Periods

Texas does not require an employer to provide breaks to employees. However if breaks are given, employers must follow the Federal requirements which state that when breaks of 20 minutes or less are given, they must be paid. Meal breaks of 30 minutes or more can be unpaid as long as the employee is relieved of all duties.

Reporting Time Pay

Neither Texas nor the Federal law requires payment if an employee reports to work expecting to work for a certain number of hours but does not get to work their full schedule.

Pay Periods

Under the Texas Payday Law, all employees must be paid at least twice a month unless the employee is exempt from overtime regulation under the Federal Law. Exempt employees must be paid at least once per month.

If paid twice a month, each pay period should have as close to an equal number of days as possible.

Deductions

The only payroll deductions allowed per the Texas Payday law are as follows:

• Court ordered deductions (such as child support, etc.)

• State and Federal Law deductions

• Deductions that the employee has authorized in writing.

Statute of Limitations

For overtime claims, the statute of limitations is the same as under Federal Law in that claims can be made for the prior 2 years (3 years if the violation is willful).

State Law Remedies / Penalties

The same Federal law remedies for overtime violations are available in Texas. Employees can recover all unpaid overtime for two or sometimes three years prior to the filing of a lawsuit. In almost all cases, they are additionally entitled to an award of “liquidated damages” equal to the amount of the unpaid overtime. This means that a successful employee can recover two times the amount of unpaid overtime. A successful plaintiff can also be awarded attorney’s fees and expenses.

Have your own questions? Contact us and we can give you more information and review your specific circumstances. You can submit your information using the convenient case-evaluation-form, send an email or call Michael Lore.

The Texas labor laws overtime provision strictly follows the rules set in place by the FLSA.  While many states have created their own laws concerning overtime Texas has chosen to rely on the rules set in place by the federal government.  Texas labor laws overtime provisions require that any employee who works more than forty hours per work week should be paid one and one half times the regular rate of pay for every hour over the forty hour mark.

Texas labor laws overtime provisions clearly state that all time spent by an employee performing activities which are job-related is potentially “work time.” This includes the employee’s regular “on the clock” work time, plus “off the clock” time spent performing job-related activities (which benefit the employer). Potential work is actual work if the employer “suffered or permitted” the employee to do it. An employer suffers or permits work if it knows the employee is doing the work (or could have found out by looking), and lets the employee do it.

The FLSA overtime rules also state that with only a few exceptions, all time an employee is required to be at the premises of the employer is work time. All regular shift time is work time. This includes “breaks” (if there are breaks), and “nonproductive” time (for example, time spent by a receptionist reading a novel while waiting for the phone to ring). In addition, all time spent by an employee performing work-related activities that the employer suffers or permits is work time, whether on premises or not and whether “required” or not. Work done “at home” or at a place other than the normal work site is work, and the time must be counted. “Voluntary” work is work, and the time must be counted.

While the Texas labor laws overtime provision is mostly black and white there is some gray area which leads to many misconceptions about overtime by both employers and employees.  Employers may violate the Texas labor laws overtime provision by failing to pay their employees the proper hourly rate. This can occur by paying overtime at the same rate as straight time, versus time and one-half. It can also occur when the employer fails to include bonuses and shift pay in the employee’s regular hourly rate.

Other times, Employers may violate Texas overtime labor law provision by failing to pay their employees for the total hours they have worked. This may include failing to pay for time such as: time spent cleaning equipment or putting on a uniform before work begins; break time; travel time; time you worked late without being asked to do so or work done at home.

If you don’t work for a governmental entity and have been getting “comp time” for working overtime hours in a work week, your employer may be violating the Texas’ overtime law. A typical example is someone who works 55 hours in a workweek, and is told by their employer that they will give you 15 hours off the next week to “make up” for the extra hours worked. This is improper under the Texas overtime law. If you are non-exempt, you are entitled to be paid overtime for any hours worked in excess of 40 hours per week.

Employers frequently classify employees as exempt, when they are actually non-exempt. The test is not whether you are salaried, but whether your actual job duties qualify you for an exemption.

Have your own questions? Contact us and we can give you more information and review your specific circumstances. You can submit your information using the convenient case-evaluation-form, send an email or call Michael Lore.

Employers and employees both need to understand the Texas overtime laws. There are stiff penalties for those who willfully do not comply with these laws, including criminal prosecution and financial fines. The state of Texas follows the federal labor laws, and has not adopted any of their own as some other states have done.

According to Texas overtime laws, employers are required to pay their employees overtime pay for hours worked over forty hours a week.  Texas overtime laws require that overtime pay should be no less than one and one-half times the employee’s regular rate of pay.  The only employees that should not receive overtime pay are those that are exempt. Texas follows the federal laws regarding exempt employees.  Exempt employees are strictly defined by the Department of Labor and include employees such as executives, professionals, teachers and certain commissioned positions.

Texas overtime laws do not provide provisions for Holidays.  Some companies will pay their employees time and a half for working on federal holidays but the decision to do so varies from company to company.

Because Texas overtime laws are sometimes complex, it can be difficult for an employee to know if he or she should be paid overtime and there are many common misconceptions regarding overtime.  If your private employer is giving you comp time instead of paying you overtime, they are likely breaking the law. Many private employers assume it is OK to give their employees comp time instead of the overtime pay they are entitled to but it is illegal!

Employers often assign employees more work than can be done in forty hours. The employee often stays late without being paid or takes the work home. If your employer is aware of this, you are entitled to overtime. When an employee must correct mistakes in his or her work, the time must be treated as hours worked. The correction of errors, or “rework”, is hours worked, even when the employee voluntarily does the rework.

Time that an employee is required to be at work or allowed to work for his or her employer is hours worked. A person hired to do nothing or to do nothing but wait for something to do or something to happen is still working. The Supreme Court has stated that employees subject to the FLSA must be paid for all the time spent in “physical or mental exertion (whether burdensome or not) controlled or required by the employer and pursued necessarily and primarily for the benefit of the employer of his business.”

Hours worked include all the time during which an employee is required or allowed to perform work for an employer, regardless of where the work is done, whether on the employer’s premises, at a designated work place, at home or at some other location.

It is the duty of management to exercise control and see that work is not performed if the employer does not want it to be performed. An employer cannot sit back and accept the benefits of an employee’s work without considering the time spent to be hours worked. Merely making a rule against such work is not enough. The employer has the power to enforce the rule and must make every effort to do so. Employees generally may not volunteer to perform work without the employer having to count the time as hours worked.

Have your own questions? Contact us and we can give you more information and review your specific circumstances. You can submit your information using the convenient case-evaluation-form, send an email or call Michael Lore.

The Texas Department of Labor provides unemployment and employment resources for Texas residents, as well as business and labor information and services. The laws set in place by the Texas Department of Labor cover everything from child labor laws to unemployment services.  The Texas Department of Labor laws are of vital importance to employers, if an employer fails to follow the labor laws, whether knowingly or unknowingly, it could mean stiff penalties for the company.

The Texas Department of Labor laws are also of extreme importance to employees.  The services they provide to those who are employed and unemployed are invaluable. Texas Department of Labor laws unemployment services include filing a new claim for unemployment benefits and filing for weekly unemployment benefits.  Resources for Texas businesses include unemployment information, workforce development, welfare-to-work, wage and hour laws and other employment information.  They also provide the employment and safety posters that employers are required to display to all employees.

The Texas Department of Labor laws include overtime provisions, the Texas Payday law, Child Labor laws, as well as minimum wage laws.  Many of these laws strictly follow the federal statutes put in place by the department of labor.  For instance, the laws in Texas regarding overtime follow the federal statutes to the letter; however, the Texas Payday law was passed and implemented at the state level.

The Texas Department of Labor Laws sets out rules and regulations to protect employee rights. Some of the areas covered by the Texas Labor Code include employment discrimination, employment of children, wages, staff leasing services—meaning temporary employee services—and employee benefits.

According to the Texas Workforce Commission, all business entities except public employers are covered by Texas Payday Law. Texas Payday Law sets out how frequently employees must be paid, how an employee can be paid and when an employer can legally take deductions from an employee’s wages. Texas Payday Law requires that employers pay their employees in full, on time and on regularly-scheduled paydays.

The Texas Minimum Wage Act sets out minimum wage guidelines for non-exempt employees. Furthermore, it reqTexas Department ofuires non-exempt employees to be given a written earnings statement concerning their pay and provides civil remedies in the event that the Minimum Wage Act is violated. As of July 24, 2009, the federal minimum wage increased to $7.25 an hour.

The Texas Department of Labor laws follow the federal regulations on overtime set by the Fair Labor Standards Act.  Under the FLSA, some workers can be exempted from overtime pay, however, those workers must fit the criteria the FLSA sets out for exemption..  For those employees who are not exempt, overtime pay should be one and one half times the amount of an employee’s regular pay. Texas laws also apply to employment subject to the FLSA. In cases where both the FLSA and state law apply, the law setting the higher standards and most favorable to the employee must be observed.

The Texas Department of Labor laws also provide employees with information on how to file a claim against an employer who they believe is treating them unfairly and not following the labor laws.   While the Department of Labor can help an employee file a claim against their employer, it is recommended that employees retain a lawyer to help them with their claim.

Have questions about your own situation? Contact us and we can give you more information and review your specific circumstances. You can submit your information using the convenient case-evaluation-form, send an email or call Michael Lore.

The state of Texas, like many others, follows the federal regulations regarding overtime pay.  Texas overtime pay provisions require that any employee who works more than forty hours per work week should be paid one and one half times the regular rate of pay for every hour over the forty hour mark.

It is very important that an employer know what time his or her employee should be paid for. Not paying an employee for time they spent doing work could mean docking their pay, whether intentionally or unintentionally.  Texas overtime pay provisions clearly state that all time spent by an employee performing activities which are job-related is potentially “work time.” This includes the employee’s regular “on the clock” work time, plus “off the clock” time spent performing job-related activities (which benefit the employer). Potential work is actual work if the employer “suffered or permitted” the employee to do it. An employer suffers or permits work if it knows the employee is doing the work (or could have found out by looking), and lets the employee do it.  The Texas overtime pay rules also state that, with only a few exceptions, all time an employee is required to be at the premises of the employer is work time. All regular shift time is work time. This includes “breaks” (if there are breaks), and “nonproductive” time (for example, time spent by a receptionist reading a novel while waiting for the phone to ring). In addition, all time spent by an employee performing work-related activities that the employer suffers or permits is work time, whether on premises or not and whether “required” or not. Work done “at home” or at a place other than the normal work site is work, and the time must be counted. “Voluntary” work is work, and the time must be counted.

Often times, employers will try to compensate their employees for overtime by giving them hours off.  For instance, if an employee worked five hours over the forty hour full time mark, his or her boss may allow her to come into work five hours later or leave work five hours earlier at some point in the future rather than paying him/her the time and a half they are due.  Under the Texas overtime pay provision this is illegal.

The only people who are not covered under the Texas overtime pay provision are those who are classified as exempt.  Because the state of Texas has not set any provisions regarding overtime or overtime pay on its own, the state follows the exemptions set in place by the federal government.  The categories of exempt employees include: executive employees, administrative employees, professional employees, computer employees and outside sales employees.  The rules regarding exemptions for the Texas overtime pay provision are more involved than just labeling employees.  Exempt employees must meet the extensive criteria for each category for exempt employees.

Have your own questions? Contact us and we can give you more information and review your specific circumstances. You can submit your information using the convenient case-evaluation-form, send an email or call Michael Lore.

When an employee works overtime in Texas, he/she has a legal right under the Fair Labor Standards Act (FLSA) to be compensated if that employee is not otherwise exempt.  Almost all hourly employees and many salaried employees are entitled to be paid overtime in Texas.  Some employers choose not to pay by falsely labeling their workers as exempt, while others just do not understand the law.

• Employers in Texas are required by both federal and state laws to protect employee rights.

• Employees in Texas are protected by both the Texas Labor Code and the Fair Labor Standards Act (FLSA).

• The FLSA defines “overtime” as working over 40 hours in a workweek.

• Overtime in Texas pays 1.5 times an employees’ regular hourly rate.

• There are few overtime exemptions in Texas, which follow federal law.

• Some salaried employees can still receive overtime pay.

• Employees classified as “non-exempt” are entitled to receive overtime pay.

• How and how much you are paid, and what your job duties are in most cases determines your exemption status.

• Employees are protected under the FLSA against retaliation for asserting an overtime claim.

The FLSA sets a standard for most of the United States for overtime pay.  Regarding overtime in Texas, state overtime laws may vary as each state may set its own guidelines for determining who is and who is not exempt from overtime pay – sometimes providing greater rights than federal law.  But the rate of overtime pay is the same across the board at 1.5 times the employee’s regular hourly wage, with overtime being any hours worked over a 40 hour workweek.

AM I EXEMPT FROM RECEIVING OVERTIME PAY?

In most cases, proper classification of employee job duties to determine exemption status depends on (a) how much they are paid, (b) how they are paid, and (c) what their job duties/responsibilities are. While there are exceptions, typically, to be exempt an employee must meet 3 tests:  (1) be paid at least $455/per week (2) be paid on a salaried basis, and (3) perform exempt job duties.  The three most common exempt job titles are “executive”, “professional” and “administrative”.

The overtime attorneys at the Lore Law Firm receive and answer many questions concerning employee rights, and oftentimes these answers lead to other possible cases these employees may have against their employer.

One letter asked:

“I work in the state of Texas and I am a salaried employee.  Sometimes I have worked my 40 hours before the week has ended.  My employer requires us to come in and work at least 1 hour on that Friday.  If we do not come in we have to take a vacation day.  Is that legal?

Answer:

The short answer to your question is – it is probably legal.  The U.S. Department of Labor has stated that it is permissible for an employer to provide vacation time and later require that it be taken on a specific day or in a specific way. According to the DOL, a private employer may direct exempt staff to take vacation or debit their leave bank account, whether for a full or partial day’s absence, provided the employees receive in payment an amount equal to their guaranteed salary. An employer may also require exempt employees to use accrued vacation time for any absence, without affecting their exempt status, provided that the employees receive a payment in an amount equal to their guaranteed salary.

Under both Texas and federal wage and hour laws (the FLSA), merely being “salaried” does not, however, mean you are an exempt employee and not entitled to overtime pay for hours worked in excess of 40 per week.  The first issue is to determine your proper classification – either “exempt” or “non-exempt”.

In the rest of our response, we explained the basics covering overtime in Texas, illustrating to this particular employee that she could have a case in where her employer owes her back overtime pay.

If you have similar wage and hour questions, complete our  Case Evaluation Form as much as possible and submit it. One of our overtime lawyers will be happy to help you evaluate your possible overtime claim.