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Understanding Texas Overtime Pay Laws: A Guide for Employers

Understanding TEXAS Overtime Pay Laws: A Guide for Employers

As a business owner who may want to understand and follow Texas overtime pay laws to the letter of the law, it may not be as easy as one would think.  You have a lot on your plate – managing day-to-day operations, making strategic decisions, and ensuring the success of your company. But amidst the hustle and bustle of running a business, it’s crucial not to overlook your legal obligations when it comes to paying overtime to your employees, especially in the state of Texas where Texas overtime pay laws can be very harsh if not followed. Failure to do so can lead to costly legal consequences.

In this blog, our employment defense lawyers will provide you with valuable insights into overtime pay laws in Texas, the government agencies that handle claims for unpaid overtime, what constitutes overtime, and the steps to take if you are facing such a claim – whether it’s true or false.

Understanding TEXAS Overtime PAY Laws in Texas

Overtime pay laws in Texas are primarily governed by the Fair Labor Standards Act (FLSA), a federal law that sets the standards for minimum wage and overtime pay nationwide. Under the FLSA, eligible employees must be compensated at a rate of one and a half times their regular rate of pay for all hours worked in excess of 40 hours in a workweek.

However, Texas, like many other states, has its own labor laws that may affect how overtime pay is calculated. In Texas, there is no state-specific overtime law, so employers are subject to federal regulations outlined in the FLSA.

Government Agencies Handling Claims for Unpaid Overtime

If an employee believes they have not been properly compensated for overtime work, they can file a complaint or claim with the following government agencies:

  1. U.S. Department of Labor (DOL): The Wage and Hour Division (WHD) of the DOL is responsible for enforcing federal labor laws, including those related to overtime pay. Employees can file complaints with the WHD, which will then investigate the claim and take appropriate action if violations are found.

  2. Texas Workforce Commission (TWC): While the TWC primarily deals with unemployment benefits, it can also handle claims related to unpaid wages, including overtime. If an employee files a claim with the TWC, they may investigate the matter or refer it to the appropriate agency.

What Constitutes Overtime?

Overtime is defined as any time worked by an eligible employee in excess of 40 hours in a workweek. It’s important to note that not all employees are entitled to overtime pay. Exempt employees, who typically hold salaried positions and meet specific criteria set forth by the FLSA, are not entitled to overtime pay.

Non-exempt employees, on the other hand, are entitled to overtime pay. Common examples of non-exempt employees include hourly workers, clerical staff, and many service industry employees. Overtime is calculated at a rate of one and a half times the employee’s regular hourly rate.

It’s crucial for employers to correctly classify their employees as exempt or non-exempt to avoid potential legal issues. Misclassifying employees can result in costly wage and hour claims.

texas overtime pay law claim

Steps to Take When Facing an Overtime Pay Claim

Facing an overtime pay claim, whether it is true or false, can be a complex and challenging situation for any business owner. Here are the steps you should consider taking:

  1. Gather Documentation: Collect all relevant records, including timesheets, payroll records, and employment contracts. Documentation is essential in defending against an overtime pay claim, and it can help you demonstrate that you have followed all applicable laws.

  2. Conduct an Internal Audit: Review your payroll practices and employee classifications to ensure compliance with federal and state labor laws. If you discover errors, take corrective actions promptly.

  3. Consult with Legal Counsel: It’s wise to consult with an experienced employment defense lawyer as soon as you become aware of an overtime pay claim. An attorney can provide valuable guidance on how to navigate the legal process, protect your rights, and minimize potential liabilities.

  4. Cooperate with Government Agencies: If a claim is filed with the DOL or TWC, cooperate fully with their investigations. This includes providing requested documentation and information. Failure to cooperate can result in additional penalties.

  5. Defend Your Position: If you believe the claim is unjust or unfounded, your legal counsel can help you build a strong defense. This may involve presenting evidence, conducting witness interviews, and negotiating with the claimant or their legal representative.

Contact Gallian Firm for a Free Consultation and Claim Review

Navigating overtime pay laws in Texas and defending against unpaid overtime claims can be complex and legally challenging. As a business owner, it’s essential to understand your legal obligations and take proactive steps to ensure compliance with federal and state labor laws.

If you find yourself facing an overtime pay claim, whether it is valid or not, it’s in your best interest to seek professional legal assistance from an employment lawyer. Gallian Firm is here to help. With years of experience in employment defense, we have successfully assisted numerous businesses in Texas facing similar challenges.

Make the Easy Phone Call for a Free Consultation

With a simple phone call, our employment defense lawyers at Gallian Firm will provide you a free consultation and claim review to assess your situation and provide guidance on the best course of action. Don’t wait until legal troubles escalate – contact Gallian Firm today to protect your business’s interests and secure a favorable resolution to your overtime pay claim. Your business’s future may depend on it.


Send a message to Gallian Firm and we will contact you as soon as possible.

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