What are the requirements for overtime pay?
In Texas, employees must be paid overtime for all hours worked beyond 40 per workweek, at a rate of 1.5 times their hourly pay rate. This is required by the Fair Labor Standards Act (FLSA) and enforced by the Texas Workforce Commission. Employers must also pay overtime if an employee works more than eight hours in a single day. The Workforce Commission further requires that overtime be paid when an employee works more than six days in a workweek. If an employer has a policy to pay double time, meaning double the employee’s regular rate of pay, for hours worked beyond the overtime threshold, then they must honor that policy. Payment for double time is also required when an employee works on a designated holiday or Sunday. However, some types of employees are exempt from overtime pay requirements, such as executive, administrative, and professional employees, outside sales reps, and independent contractors. Additionally, certain types of businesses are not required to provide overtime, including some small farms, some seasonal amusement or recreational establishments, and some non-profit religious or charitable organizations. Employers must keep accurate records of the hours an employee works in order to ensure compliance with the FLSA and the Texas Workforce Commission. If an employer fails to pay proper overtime wages, the employee can file a wage claim with the commission. Additionally, an employer may be subject to civil or criminal fines for failing to comply with FLSA requirements.
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