Texas Wage and Hour Laws: Minimum Wage, Overtime and Final Pay
Your overtime does not add up, your last paycheck is late, or you run payroll and are not sure your classifications are right. Texas wage and hour laws come from two sources: the federal FLSA and Texas state law. Knowing how those two layers fit together is the first step to understanding what a paycheck should look like.
This post walks through the main pieces in plain language: the minimum wage, overtime, exempt status, the Texas Payday Law and how pay claims are enforced. It is general education for workers, managers and business owners, not legal advice about any one situation.
How do Texas wage and hour laws set the minimum wage?
The FLSA sets the floor, and in Texas that floor is the $7.25 minimum wage. The guide explains why no Texas city can set a higher minimum wage, a limit found in §62.0515. That means workers in large cities and small towns start from the same number.
Tipped work has its own rules. The guide explains the tip credit and the $2.13 cash wage, along with what counts as hours worked. Those details matter because time that is not tracked correctly can quietly lower what a worker actually earns per hour.
For employers, the minimum wage is the easy part. The harder questions usually involve tipped roles, unpaid time and how hours are recorded, which is why the guide spends time on each one.
How do Texas overtime rules work over 40 hours?
Overtime is paid at 1.5 times the regular rate for hours over 40 in a workweek. Two ideas trip people up. First, each workweek stands alone, so a long week and a short week are not blended together. Second, the regular rate is not always the same as the base hourly wage.
The guide shows how to build the regular rate correctly. It also covers off-the-clock work and breaks, since both affect how many hours count toward the 40. Small errors in either one can add up over months of payroll.
Overtime rate: 1.5 times the regular rate
Trigger: hours over 40 in a single workweek
Each workweek is measured on its own
Off-the-clock work and breaks affect the hour count
Who counts as exempt from overtime?
A salary alone does not make someone exempt. The guide explains the three-part test for exempt status, including the $684 per week salary threshold and the 2024 rule that was vacated. Classification is one of the most common sources of payroll trouble, so it helps to understand the test before relying on a label.
The guide also covers independent contractor status. The label on paper and the actual working relationship do not always match, and the guide explains how that question is looked at.
The three-part test for exempt status
The $684 per week salary threshold
The vacated 2024 rule
Independent contractor status
What does the Texas final paycheck law say about 6 days?
The Texas Payday Law chapter explains the 6-calendar-day final-paycheck rule and when it applies. It also covers limits on deductions from pay. Both matter to a worker reading a final paystub and to an employer setting payroll policy.
The same chapter explains the 180-day TWC wage claim. Deadlines like this are easy to miss when someone is focused on finding new work or running a business. Knowing the clock exists is often half the battle.
Employers benefit from the same knowledge. A clear final-pay process, applied the same way every time, makes it easier to meet the rule and to answer questions from former employees.
How do you file a wage claim with the TWC or bring an unpaid overtime claim in Texas?
The last chapter of the guide shows how pay claims are enforced. There are three main channels, and each one works differently. The guide explains how claims move through each of them.
Pay disputes often overlap with other workplace protections. For that reason, the guide also covers retaliation, the Equal Pay Act and the PUMP Act, so readers can see the full picture around a pay problem.
The DOL at the federal level
The TWC, including the 180-day wage claim
FLSA collective actions
Why it pays to understand the rules early
Many pay problems start small: a role classified the wrong way, an unpaid break, or a deduction that should not have been taken. Understanding the rules early makes it easier to spot a problem, ask better questions and keep good records. That is true for the person earning the paycheck and for the person signing it.
Every pay situation turns on its own facts, so talk with a licensed Texas attorney about your specific situation. The Texas Wage & Hour Guide lays out how the FLSA and Texas law fit together, so you can walk into that conversation with a clear picture.
Frequently asked questions
Is comp time legal in Texas?
Not for private employers. The Texas Wage & Hour Guide explains why comp time is illegal for private employers, no matter who agrees to it. In other words, an agreement to trade overtime pay for later time off does not solve the overtime question. The guide covers this alongside the overtime rules and the regular rate.
What is the tipped minimum wage in Texas?
The guide explains the tip credit and the $2.13 cash wage for tipped workers. It also covers what counts as hours worked, which affects whether total pay meets the $7.25 minimum wage. Tipped pay can be confusing for both sides, so understanding how the tip credit works is a helpful starting point.
Can a Texas city set its own higher minimum wage?
No. The guide explains that no Texas city can set a minimum wage higher than $7.25 under §62.0515. As a result, the same minimum applies across the state. Workers and employers can focus on the federal and state rules rather than tracking separate local wage ordinances from city to city.
Get the full guide
Get The Texas Wage & Hour Guide from STACKED LEGAL for a plain-language walk through minimum wage, overtime, classification, final pay and enforcement. It is available in paperback and eBook. Read The Texas Wage & Hour Guide.
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Legal information, not legal advice. Laws change, and every situation is different. For advice about your situation, talk to a licensed Texas attorney.
