How is Overtime Calculated in Texas?
In Texas, as in the rest of the United States, overtime pay is governed by the Fair Labor Standards Act (FLSA), which sets the rules for how overtime should be calculated for eligible employees. If you're working more than 40 hours a week, it’s important to understand how overtime works to ensure you’re receiving the correct pay. In this blog, we’ll explain how overtime is calculated in Texas, who is eligible for it, and how to resolve disputes about unpaid overtime.
Who is Eligible for Overtime Pay in Texas?
The FLSA requires most employees who work more than 40 hours in a workweek to be paid overtime at 1.5 times their regular hourly wage. However, not all employees are eligible for overtime.
Non-Exempt Employees: Most workers in Texas are considered “non-exempt,” meaning they are entitled to overtime pay when they work more than 40 hours in a week.
Exempt Employees: Some employees are “exempt” from overtime pay. This typically includes salaried workers in specific job categories such as executives, professionals, and administrative employees. To qualify as exempt, an employee must meet certain criteria set forth by the FLSA, such as job duties, salary level, and salary basis.
How is Overtime Calculated in Texas?
For non-exempt employees, overtime is calculated by multiplying the number of overtime hours worked by 1.5 times the regular hourly wage. Here’s how to calculate it:
Determine Your Regular Hourly Rate: If you're a salaried employee, first calculate your regular hourly rate. To do this:
- Divide your annual salary by 52 to find your weekly salary.
- Then divide that number by the number of hours you normally work in a week (usually 40).
For example, if you earn $50,000 a year and work 40 hours a week:
- $50,000 ÷ 52 weeks = $961.54 per week.
- $961.54 ÷ 40 hours = $24.04 per hour.
Identify the Overtime Hours Worked: Any time worked beyond 40 hours in a workweek is considered overtime. For example, if you work 45 hours in a week, then 5 hours are overtime.
Calculate Overtime Pay: Multiply your regular hourly rate by 1.5 (this is the overtime rate), then multiply that by the number of overtime hours worked.
Using the example above:
- Regular hourly rate = $24.04.
- Overtime rate = $24.04 x 1.5 = $36.06.
- For 5 overtime hours: $36.06 x 5 hours = $180.30 in overtime pay.
Add the Overtime to Regular Pay: In this case, your total pay for the week would be the regular pay plus the overtime:
- Regular pay = $24.04 x 40 hours = $961.54.
- Overtime pay = $180.30.
- Total pay = $961.54 + $180.30 = $1,141.84.
When is Overtime Not Required?
While most employees are entitled to overtime pay, there are certain circumstances where overtime is not required:
Exempt Positions: As mentioned earlier, employees who meet the exemption criteria based on their job duties and salary are not entitled to overtime pay.
Overtime Not Required for Certain Salaried Workers: Some salaried workers may fall into categories where they are not entitled to overtime, even if they work over 40 hours per week. This includes workers who are in bona fide executive, administrative, or professional roles.
Independent Contractors: Independent contractors are not entitled to overtime pay because they are not considered employees under the FLSA. The key distinction is that independent contractors have control over how and when they perform their work.
What to Do if You Aren’t Being Paid Overtime
If you believe you’re entitled to overtime pay but are not receiving it, here are the steps you can take:
Review Your Employment Contract: Check if your employer has a written policy on overtime pay. Also, ensure that you meet the criteria for being classified as non-exempt (and not exempt).
Document Your Hours: Keep detailed records of the hours you work. This can include timecards, emails, or a personal log of the hours you worked. The more documentation you have, the better your chances of proving your case.
Talk to Your Employer: Sometimes payroll mistakes happen. If you feel comfortable doing so, bring the issue to your employer’s attention and ask them to correct it.
File a Claim: If your employer refuses to pay you overtime, you can file a wage claim with the Texas Workforce Commission (TWC) or the U.S. Department of Labor. Both agencies handle overtime wage disputes.
Consult an Attorney: If you’re still not paid correctly, it may be time to seek legal advice. An experienced employment attorney can help you navigate your rights under the FLSA, assess whether your employer is in violation, and determine the best course of action.
Contact Our Texas Overtime Lawyers
Understanding how overtime is calculated in Texas is essential for ensuring that you're paid fairly for all the hours you work. If you're entitled to overtime but aren’t being paid properly, it's important to take action. With the right documentation and support, you can secure the compensation you deserve.
At Fair Labor Law, we specialize in helping workers assert their rights under employment law. If you're facing an overtime dispute or any other wage-related issue, don’t hesitate to reach out for a consultation. We’re here to help ensure you get the wages you’ve earned.
Are you missing pay for overtime hours that you have worked? Speak with a qualified unpaid overtime lawyer in Texas at Fair Labor Law. Hablamos Español and we're available 24/7. Contact us onlineor call (888) 333-7147right away.
FAQ: How is Overtime Calculated in Texas?
Q1: Do salaried employees get overtime pay in Texas? A1: Salaried employees may be entitled to overtime pay, depending on their job duties and salary level. If they don’t meet specific criteria for exemption, they are entitled to overtime at 1.5 times their regular rate.
Q2: How do I calculate overtime pay for salaried employees? A2: To calculate overtime for salaried employees, divide their annual salary by 52 weeks and then by the number of hours they work per week. Multiply the result by 1.5 for overtime and then calculate based on hours worked over 40 in the week.
Q3: Can my employer refuse to pay me overtime? A3: No, if you are classified as a non-exempt employee and worked more than 40 hours in a workweek, your employer is legally required to pay you overtime. If they do not, you have the right to file a wage claim.