Texas, like other states, follows the Fair Labor Standards Act (FLSA) regarding overtime pay. The FLSA mandates overtime pay for eligible employees who work over 40 hours in a workweek. Eligibility hinges not on an employee’s salary status, but rather on their exemption status. For example, an employee classified as “exempt” under the FLSA’s executive, administrative, professional, outside sales, or computer employee exemptions is generally not entitled to overtime pay, regardless of their compensation structure. Conversely, “non-exempt” employees, typically paid hourly, are entitled to overtime pay at a rate of one and one-half times their regular rate of pay for hours worked beyond 40 in a workweek. Misclassifying employees can lead to significant legal and financial repercussions.
Accurate classification of employees is crucial for both employers and employees. Properly compensating employees ensures compliance with the law, minimizes the risk of legal disputes and penalties, and fosters a positive work environment. For employees, understanding their classification ensures they receive the compensation to which they are legally entitled. The FLSA’s overtime provisions are designed to protect workers from exploitation and ensure fair compensation for extra hours worked. These regulations have a long history stemming from labor movements and evolving legislation aimed at establishing equitable workplace standards.
