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How to Calculate Unpaid Overtime in Texas: Step-by-Step Guide

Texas overtime is calculated using the federal Fair Labor Standards Act (FLSA) formula: 1.5 times your regular rate for all hours over 40 in a workweek. To calculate what you’re owed, multiply your overtime hours by 1.5x your regular hourly rate, then subtract what you were actually paid.

Texas has no state overtime law. All overtime protections come from federal FLSA rules. This guide shows you exactly how to calculate unpaid overtime, with real examples for different pay structures.

Basic Overtime Calculation Formula

The Standard Formula

Overtime Pay Owed = (Overtime Hours × Regular Rate × 1.5) – Amount Already Paid

Breaking it down:

  1. Overtime hours = Total weekly hours minus 40
  2. Regular rate = Your hourly pay rate (or calculated from salary)
  3. Overtime rate = Regular rate × 1.5
  4. Total overtime owed = Overtime hours × Overtime rate
  5. Unpaid amount = What you should have received minus what you actually got

Key Points

  • Overtime is calculated weekly, not daily or bi-weekly
  • The workweek is any consecutive 7-day period your employer designates
  • You’re owed overtime for all hours over 40 in a workweek
  • “Time and a half” means 1.5x your regular rate

Example workweek: Monday through Sunday, Sunday through Saturday, or any other 7-day period.

Example 1: Simple Hourly Employee

Facts:

  • Hourly rate: $15/hour
  • Week 1: Worked 48 hours
  • Paid: Only regular rate for all 48 hours ($720 total)

Calculation:

Step 1: Calculate overtime hours

  • Total hours: 48
  • Regular hours: 40
  • Overtime hours: 48 – 40 = 8 hours

Step 2: Calculate overtime rate

  • Regular rate: $15/hour
  • Overtime rate: $15 × 1.5 = $22.50/hour

Step 3: Calculate what you should have been paid

  • Regular pay: 40 hours × $15 = $600
  • Overtime pay: 8 hours × $22.50 = $180
  • Total owed: $600 + $180 = $780

Step 4: Calculate unpaid amount

  • Amount paid: $720
  • Amount owed: $780
  • Unpaid overtime: $780 – $720 = $60

Even though it’s only $60 for one week, multiply this by every week you were shorted. Over a year, that’s $3,120 in unpaid wages.

Example 2: Multiple Pay Rates (Weighted Average)

If you work different jobs at different rates for the same employer, calculate a weighted average for your regular rate.

Facts:

  • Job 1 (server): $10/hour, worked 25 hours
  • Job 2 (bartender): $15/hour, worked 20 hours
  • Total week: 45 hours
  • Paid: Straight time at each rate (no overtime premium)

Calculation:

Step 1: Calculate total straight-time pay

  • Server pay: 25 hours × $10 = $250
  • Bartender pay: 20 hours × $15 = $300
  • Total straight-time: $250 + $300 = $550

Step 2: Calculate weighted average (regular rate)

  • Total pay: $550
  • Total hours: 45
  • Regular rate: $550 ÷ 45 = $12.22/hour

Step 3: Calculate overtime hours and rate

  • Overtime hours: 45 – 40 = 5 hours
  • Overtime rate: $12.22 × 1.5 = $18.33/hour

Step 4: Calculate what you should have been paid

  • Regular pay (first 40 hours): Already paid $550, but need to recalculate
  • Correct regular pay: 40 hours × $12.22 = $488.80
  • Overtime pay: 5 hours × $18.33 = $91.65
  • Total owed: $488.80 + $91.65 = $580.45

Step 5: Calculate unpaid amount

  • Amount paid: $550 (straight time only)
  • Amount owed: $580.45
  • Unpaid overtime: $580.45 – $550 = $30.45

This example shows why working multiple positions without proper overtime calculation costs you money.

Example 3: Salaried Non-Exempt Employee

Many salaried employees are not exempt from overtime. If you’re salaried but don’t meet the exemption tests, you’re entitled to overtime.

Facts:

  • Weekly salary: $800
  • Week 1: Worked 50 hours
  • Paid: Just the $800 salary (no overtime)

Calculation:

Step 1: Calculate regular hourly rate

  • Weekly salary: $800
  • Standard workweek: 40 hours
  • Regular rate: $800 ÷ 40 = $20/hour

Step 2: Calculate overtime hours and rate

  • Total hours: 50
  • Overtime hours: 50 – 40 = 10 hours
  • Overtime rate: $20 × 1.5 = $30/hour

Step 3: Calculate total owed

  • Salary (covers first 40 hours): $800
  • Overtime pay: 10 hours × $30 = $300
  • Total owed: $800 + $300 = $1,100

Step 4: Calculate unpaid amount

  • Amount paid: $800
  • Amount owed: $1,100
  • Unpaid overtime: $1,100 – $800 = $300

Over 52 weeks, if you work 10 hours of overtime every week, you’re owed $15,600 in unpaid overtime annually.

Important: Just because you’re salaried doesn’t mean you’re exempt. Learn more: Can Employer Not Pay Overtime Texas

Example 4: Shift Differentials and Bonuses

If you receive non-discretionary bonuses, commissions, or shift differentials, these must be included in your regular rate calculation.

Facts:

  • Base rate: $12/hour
  • Night shift differential: $2/hour for 20 hours
  • Worked 50 total hours (20 on night shift, 30 on day shift)
  • Paid: Straight time only

Calculation:

Step 1: Calculate total straight-time pay

  • Day shift: 30 hours × $12 = $360
  • Night shift: 20 hours × $14 ($12 + $2 differential) = $280
  • Total straight-time: $360 + $280 = $640

Step 2: Calculate regular rate

  • Total straight-time pay: $640
  • Total hours: 50
  • Regular rate: $640 ÷ 50 = $12.80/hour

Step 3: Calculate overtime

  • Overtime hours: 50 – 40 = 10 hours
  • Overtime rate: $12.80 × 1.5 = $19.20/hour
  • Overtime pay owed: 10 × $19.20 = $192

Step 4: Calculate total owed

  • Regular pay for 40 hours: 40 × $12.80 = $512
  • Overtime pay: 10 × $19.20 = $192
  • Total owed: $512 + $192 = $704

Step 5: Calculate unpaid amount

  • Amount paid: $640
  • Amount owed: $704
  • Unpaid overtime: $704 – $640 = $64

Calculating Over Multiple Weeks

If you’ve been denied overtime for months or years, calculate each week separately, then add them up.

Example:

Week Hours Worked Overtime Hours Unpaid Overtime Owed
Week 1 45 5 $75
Week 2 48 8 $120
Week 3 42 2 $30
Week 4 50 10 $150
Total 185 25 $375

This is just one month. If this pattern continued for a year, you’d be owed $4,500 in unpaid overtime.

Statute of Limitations Matters

You can generally recover unpaid overtime for:

  • 2 years back (standard FLSA deadline)
  • 3 years back (if violation was willful)

Example: You’ve worked 10 hours of overtime weekly for 3 years without overtime pay. At $15/hour (overtime rate $22.50), you worked approximately 1,560 overtime hours.

Calculation:

  • Overtime hours: 10/week × 52 weeks × 3 years = 1,560 hours
  • Overtime rate: $22.50/hour
  • Half-time premium owed: 1,560 × $7.50 (the 0.5x difference) = $11,700
  • Plus liquidated damages (double): $23,400 total

This shows why calculating and pursuing unpaid overtime claims is financially significant.

Learn more: Statute of Limitations Unpaid Wages Texas

Common Employer Calculation Errors

Error 1: Paying Straight Time for Overtime Hours

Wrong: Paying your regular $15/hour rate for all hours, including overtime
Right: Paying $15/hour for first 40 hours, then $22.50/hour for overtime hours

Error 2: Averaging Hours Across Pay Periods

Wrong: You work 50 hours one week and 30 the next (80 hours over 2 weeks). Employer averages to 40/week and pays no overtime.
Right: First week has 10 overtime hours. Second week has none. You’re owed overtime for week 1 regardless of week 2.

Overtime is calculated weekly, not bi-weekly or monthly.

Error 3: Not Including Bonuses in Regular Rate

Wrong: Calculating overtime based only on base pay, ignoring production bonuses or commissions
Right: Including non-discretionary bonuses and commissions in the regular rate calculation

Error 4: Calling You Exempt Without Meeting Legal Tests

Wrong: Paying you a salary and claiming you’re exempt from overtime
Right: You must meet both salary and duties tests to be exempt (typically $684/week minimum and executive/administrative/professional duties)

Many “managers” or “supervisors” are actually non-exempt and entitled to overtime.

What to Do If You’re Owed Unpaid Overtime

Step 1: Document Your Hours

Gather evidence:

  • Timesheets or punch clock records
  • Email timestamps showing when you worked
  • Text messages from supervisors about schedule
  • Photos of your own time logs
  • Paystubs showing hours worked vs. paid

Keep your own record going forward. Write down your hours daily.

Step 2: Calculate What You’re Owed

Use the formulas above to calculate:

  • Weekly overtime hours
  • Overtime rate (1.5x regular rate)
  • Total unpaid overtime
  • How many weeks/months this occurred

Create a spreadsheet showing week-by-week calculations.

Step 3: Gather Your Employment Information

You’ll need:

  • Employer legal name and address
  • Your dates of employment
  • Job title and duties
  • Pay rate(s)
  • Evidence of hours worked

Step 4: File a Complaint

U.S. Department of Labor (Wage and Hour Division):

  • Website: dol.gov/agencies/whd
  • Phone: 1-866-4-USWAGE (1-866-487-9243)
  • File online complaint or call to report

Or consult an employment attorney:

  • Many offer free case evaluations
  • FLSA allows you to recover attorney fees from employer
  • Attorneys can file lawsuits for larger claims

Step 5: Understand Potential Recovery

Under federal FLSA, you can recover:

  • Unpaid overtime wages (back pay)
  • Liquidated damages (equal to unpaid wages—essentially doubles recovery)
  • Attorney fees and costs

Example: You’re owed $10,000 in unpaid overtime. With liquidated damages, you recover $20,000 plus your attorney fees (paid by employer).

Tools and Resources

DIY Calculation Tools

Keep a manual log:

  • Date
  • Hours worked
  • Rate of pay
  • Overtime hours
  • What you were paid vs. owed

Spreadsheet template columns:

  • Week ending date
  • Regular hours (max 40)
  • Overtime hours
  • Regular rate
  • Overtime rate
  • Total owed
  • Total paid
  • Difference

When to Consult an Attorney

Consider legal help if:

  • You’re owed more than $5,000
  • Employer is retaliating against you
  • You were misclassified as exempt
  • You’re unsure how to calculate complex pay structures
  • Employer refuses to pay after you’ve complained

Many employment attorneys work on contingency (percentage of recovery) or under FLSA fee-shifting rules.

Frequently Asked Questions

How far back can I calculate unpaid overtime in Texas?

You can generally recover unpaid overtime for 2 years back under federal FLSA. If the violation was willful (employer knew or showed reckless disregard for the law), you can go back 3 years. Texas has no separate overtime law.

Can I calculate overtime if I’m paid a salary?

Yes. Many salaried employees are entitled to overtime. Calculate your regular hourly rate by dividing your weekly salary by 40 hours, then multiply overtime hours by 1.5x that rate. Being salaried doesn’t automatically make you exempt from overtime.

Does Texas require daily overtime or just weekly?

Texas follows federal law, which requires overtime only for hours over 40 in a workweek. There’s no daily overtime requirement. You could work 12 hours one day with no overtime, as long as your weekly total stays under 40 hours.

What if my employer pays me different rates for different tasks?

Calculate a weighted average of all rates. Add up your total straight-time pay, divide by total hours worked, and that’s your regular rate. Multiply the regular rate by 1.5 to get your overtime rate.

Can my employer give me comp time instead of overtime pay?

Not in private employment. Comp time is illegal for private sector workers. Your employer must pay you 1.5x your regular rate in actual wages. Some government employees can receive comp time, but private employers cannot offer it.

What if my employer paid me some overtime but not the correct rate?

Calculate the difference between what you should have received (1.5x regular rate) and what you actually got. You’re owed the difference for every overtime hour worked.

Related Topics

Take Action

If you’ve calculated unpaid overtime you’re owed, act quickly. Federal FLSA claims have a 2-3 year statute of limitations, but evidence becomes harder to gather over time.

File a complaint:

  • U.S. Department of Labor: dol.gov/agencies/whd or call 1-866-4-USWAGE
  • Employment Attorney: For claims over $5,000, consider legal representation

Keep detailed records, calculate what you’re owed, and don’t delay protecting your rights.

Legal Disclaimer

This article provides general information about calculating unpaid overtime under federal law and is not legal advice. Overtime calculations can involve complex factors depending on your pay structure and employment situation. For advice specific to your case, consult an employment attorney or contact the U.S. Department of Labor. Filing deadlines are strict—don’t delay seeking help.