Texas Wage and Hour Laws: Overtime, Breaks, and Wage Claims

Texas wage and hour laws combine state rules enforced by the Texas Workforce Commission with federal standards under the Fair Labor Standards Act. The state handles pay frequency, final paychecks, deductions, and child labor; the federal government sets the minimum wage, overtime, and most break rules. Because Texas has no overtime law or break requirement of its own, federal rules fill those gaps, and both layers apply to almost every job in the state.1U.S. Department of Labor. Memorandum of Understanding Between the U.S. Department of Labor, Wage and Hour Division and the State of Texas – Texas Workforce Commission

Minimum Wage

The minimum wage in Texas is $7.25 per hour, unchanged since July 2009.2Texas Workforce Commission. Texas Minimum Wage Law Labor Code Chapter 62 doesn’t set a separate state figure. It ties the state floor to whatever the federal rate is under the FLSA.3State of Texas. Texas Code Labor Code 62.051 – Minimum Wage Every covered employer must pay at least that amount for each hour worked.

Tipped Workers

An employer can pay a tipped employee a direct cash wage as low as $2.13 per hour, as long as that worker customarily receives more than $30 per month in tips. The $5.12 gap between the cash wage and the $7.25 minimum is the “tip credit.” If tips in a given pay period don’t close that gap, the employer must make up the difference so the worker still earns $7.25 for every hour.4U.S. Department of Labor. Tips The employer also has to tell the employee about the arrangement in advance.5Office of the Law Revision Counsel. 29 USC 203 – Definitions

Mandatory tip pools are allowed, but managers, supervisors, and owners cannot keep any portion of other employees’ tips, whether or not a tip credit is taken.6U.S. Department of Labor. Fact Sheet 15B – Managers and Supervisors Under the Fair Labor Standards Act and Tips Violations trigger liability for the tips kept plus an equal amount in liquidated damages.7Office of the Law Revision Counsel. 29 USC 216 – Penalties

Overtime

Non-exempt employees earn one and one-half times their regular rate for every hour over 40 in a workweek. A workweek is any fixed, recurring 168-hour period, and the 40-hour trigger resets each workweek.8U.S. Department of Labor. Overtime Pay Texas has no daily overtime rule, so a 12-hour shift generates no extra pay on its own if the weekly total stays at 40 or below. The FLSA also doesn’t require premium pay for weekends, holidays, or nights unless those hours push the week past 40.9U.S. Department of Labor. Wages and the Fair Labor Standards Act

An employer that misclassifies a non-exempt worker as exempt faces real exposure. A successful FLSA claim entitles the employee to all unpaid overtime plus an equal amount in liquidated damages, effectively doubling the amount owed, and the court awards reasonable attorney’s fees on top.7Office of the Law Revision Counsel. 29 USC 216 – Penalties

Who Actually Counts as Exempt

Being salaried is not enough. For the executive, administrative, or professional exemptions, an employee must earn at least $684 per week ($35,568 per year) on a salary basis and perform duties that meet specific tests. The DOL’s 2024 rule tried to raise that threshold, but a federal court in the Eastern District of Texas vacated the rule in November 2024, so the 2019 thresholds remain in force. The highly compensated employee exemption requires at least $107,432 in total annual compensation, including at least $684 per week on a salary or fee basis.10U.S. Department of Labor. Earnings Thresholds for the Executive, Administrative, and Professional Exemption from Minimum Wage and Overtime Protections Under the FLSA

Duties matter more than titles. An exempt executive, for instance, must primarily manage a department or the business and regularly direct the work of at least two full-time employees. A “manager” title stapled to a job that mostly runs a register will not hold up.

Exempt employees must receive their full salary for any week they do any work. Docking pay for a partial-day absence generally destroys the salary basis and can wipe out the exemption entirely.11Texas Workforce Commission. Salary Test

Rest and Meal Breaks

Texas does not require employers to give rest breaks or meal periods during a shift of any length.12Texas Workforce Commission. Breaks Whether you get a lunch break, a coffee break, or nothing at all is up to the employer or your contract.

When breaks are offered, federal pay rules take over. Short breaks of roughly 5 to 20 minutes count as paid work time. Meal breaks of 30 minutes or more can be unpaid, but only if the employee is completely relieved of duties. Answering phones, watching equipment, or handling customer questions during lunch converts the whole break into paid time.13U.S. Department of Labor. Breaks and Meal Periods

Paydays and Final Paychecks

Under the Texas Payday Law, non-exempt employees must be paid at least twice a month, with pay periods covering roughly the same number of days. Exempt employees can be paid once a month.14State of Texas. Texas Code Labor Code 61.011 – Paydays Employers also have to post the scheduled paydays in the workplace.

Final paycheck timing depends on how the job ended:

Final wages include hourly pay, commissions, and any bonuses already earned by the last day of work.

Unused Vacation and PTO

Neither Texas nor federal law requires an employer to pay out accrued but unused vacation or PTO at separation. If the employer has a written policy promising a payout, that policy becomes enforceable under the Payday Law and is applied exactly as written.16Texas Workforce Commission. Vacation and Sick Leave If the handbook is silent, there is nothing to enforce. Read it before assuming anything is owed.

Paycheck Deductions

Most deductions from your paycheck require your written authorization that spells out the amount and the purpose, and the money has to go toward whatever you agreed to.17Texas Workforce Commission. Wage Deduction Authorization Agreement Deductions that do not need written consent are payroll taxes like FICA and income tax withholding, plus court-ordered garnishments such as child support.

Deductions for meals, lodging, uniforms, or other employer-provided items must reflect the employer’s actual reasonable cost; the employer cannot profit from them. Repayment of a loan or wage advance can be deducted, but only the principal, with no interest or administrative fees.18Texas Workforce Commission. Allowable Deductions Under the FLSA A deduction that isn’t tax-related or court-ordered and that you never authorized in writing is likely a Payday Law violation and can support a wage claim.

Filing a Wage Claim

If an employer hasn’t paid what you’re owed, you can file a wage claim with the Texas Workforce Commission. The deadline is 180 days from the date the wages were originally supposed to be paid, and TWC counts from the date the claim is received, not the date you mail it.19Texas Workforce Commission. Texas Payday Law – Wage Claim If some unpaid wages fall outside the 180-day window and others are inside it, file for the portion still within the deadline. Wait too long and that money is gone, at least through TWC.

After the claim is filed, TWC investigates and issues a Preliminary Wage Determination Order. Either side can appeal within 21 calendar days of the date it’s mailed.20Texas Workforce Commission. Texas Payday Wage Claim Appeals Miss the 21 days and the determination becomes final. The process is administrative, so you don’t need a lawyer, though one can help if the claim involves commission structures or disputed agreements.

Hours Minors Can Work

The Texas Child Labor Law in Labor Code Chapter 51 limits how much and when 14- and 15-year-olds enrolled in school can work. During the school year, they’re capped at eight hours in a day and 48 hours in a week. They can’t work between 10 p.m. and 5 a.m. on a night before a school day, or between midnight and 5 a.m. on nights not followed by a school day.21State of Texas. Texas Code Labor Code 51.013 – Hours of Employment Hardship Exemption Workers aged 16 and 17 have no state-level hour restrictions.

Both state and federal law also bar minors under 18 from hazardous jobs, including power-driven woodworking, metalworking, and meat processing machinery; mining; roofing; demolition; and work involving radioactive substances. Texas adds restrictions on sexually oriented businesses and most door-to-door sales.22Texas Workforce Commission. Texas Code Chapter 51 – Employment of Children Violating the Child Labor Law is generally a Class B misdemeanor, with a fine of up to $2,000, up to 180 days in jail, or both.23State of Texas. Texas Code Labor Code 51.031 – Offense Penalty Employers must keep proof-of-age documents for every minor they hire.