Texas Overtime

What is the Texas Overtime Law?

In Texas, overtime calculations follow the rules set by the federal Fair Labor Standards Act (FLSA). Under the Texas Labor Code and the FLSA, non-exempt employees must be paid overtime for any hours worked over 40 hours in a single workweek.

The overtime rate is at least 1.5 times (time and a half) the employee's regular hourly rate.

Important Texas Overtime Guidelines

1. The Single Workweek Rule

An employer cannot average hours worked over two or more weeks. If an employee works 50 hours in Week 1 and 30 hours in Week 2, they must be paid 10 hours of overtime for Week 1, even though the total hours over the bi-weekly period averages out to 40 hours per week.

2. No Daily Overtime Limit

Unlike states like California or New York, Texas does not have daily overtime laws. An employee who works a 12-hour shift does not automatically earn overtime for that day, as long as their total hours worked in the workweek do not exceed 40.

3. Workweek Definition

A workweek is defined as any fixed and regularly recurring period of 168 hours (7 consecutive 24-hour periods). It does not need to align with the calendar week and can start on any day and hour designated by the employer.

How to Calculate Overtime in Texas

Overtime pay is calculated in three steps:

1. Calculate Regular Pay: Multiply the regular hourly rate by the regular hours worked (up to 40 hours).
   $$\text{Regular Pay} = \text{Regular Hours} \times \text{Regular Rate}$$
2. Calculate Overtime Rate: Multiply the regular rate by the overtime multiplier (typically 1.5).
   $$\text{Overtime Rate} = \text{Regular Rate} \times 1.5$$
3. Calculate Overtime Pay: Multiply the overtime rate by the overtime hours worked (hours exceeding 40).
   $$\text{Overtime Pay} = \text{Overtime Hours} \times \text{Overtime Rate}$$
4. Determine Total Pay: Add regular pay and overtime pay together.
   $$\text{Total Pay} = \text{Regular Pay} + \text{Overtime Pay}$$