Texas Wage and Hour Laws: Minimum Wage, Overtime & Payday Rights (2026)

Texas follows federal minimum wage and overtime laws, with some additional protections under the Texas Payday Law. While Texas doesn't have a state minimum wage above federal levels, workers still have important rights regarding wage payment, overtime, and final paychecks. Understanding these protections is essential for every Texas worker.

Quick Facts: Texas Wage Laws

Texas Minimum Wage

Current Minimum Wage

Texas minimum wage: $7.25 per hour (same as federal)

• No scheduled increases
• Texas law prohibits local minimum wage ordinances
• Cities cannot set higher minimums

Tipped Employees

Tipped minimum wage: $2.13 per hour

Requirements:

• Tips plus cash wage must equal at least $7.25/hour
• Employer must make up any shortfall
• Tip credit only valid if employee informed

Who qualifies:

• Employees regularly receiving more than $20/month in tips
• Must be engaged in tipped occupation

Exempt Employees

Not covered by minimum wage:

• Executive, administrative, professional employees (salary test applies)
• Outside salespeople
• Some agricultural workers
• Certain seasonal workers

Overtime Requirements

Federal FLSA Applies

Overtime rate: Time-and-a-half (1.5x regular rate)

When required: After 40 hours in a workweek

No daily overtime: Texas/federal law doesn't require overtime for hours over 8 per day

Calculating Overtime

Regular rate includes:

• Base hourly wage
• Non-discretionary bonuses
• Shift differentials
• Commissions (in some cases)

Regular rate excludes:

• Discretionary bonuses
• Gifts
• Vacation/sick pay
• Expense reimbursements

Overtime Exemptions

Exempt employees (salary + duties test):

• Executive (manage department, supervise employees)
• Administrative (office work, exercise discretion)
• Professional (advanced knowledge, specialized education)
• Outside sales
• Computer professionals (certain)

Salary threshold (2026): Check current DOL regulations for updated thresholds

Texas Payday Law

Wage Payment Requirements

Pay frequency:

• Employees must be paid at least twice per month
• Exempt employees may be paid once per month
• Pay dates must be regular and posted

Wage Deductions

Lawful deductions:

• Required by law (taxes, garnishments)
• Authorized in writing by employee
• Court-ordered deductions

Prohibited deductions (without written authorization):

• Shortages or breakage
• Uniforms or equipment
• Customer walkouts (restaurants)

Cannot deduct below minimum wage for non-exempt employees (even with authorization)

Direct Deposit

• Employer cannot require direct deposit
• Employee must consent in writing
• Employee can revoke consent

Final Paycheck Rules

Terminated Employees

Deadline: Within 6 calendar days of termination

Includes:

• All earned wages
• Accrued vacation (if company policy provides)
• Earned commissions and bonuses

Employees Who Quit

Deadline: Next regularly scheduled payday

If employee gives notice:

• Still paid on next regular payday
• No accelerated deadline for notice

Disputed Wages

If employer disputes amount owed:

• Must pay undisputed portion by deadline
• Disputed amount resolved separately

Meal and Rest Breaks

No State Requirements

Texas does NOT require:

• Meal breaks for adult employees
• Rest breaks for adult employees
• Any specific break schedule

Federal FLSA Break Rules

If breaks are provided:

• Short breaks (under 20 minutes): Must be paid
• Meal breaks (30+ minutes): Unpaid if completely relieved of duties
• Working through meal: Must be paid

Special Rules

Nursing mothers (PUMP Act):

• Reasonable break time to express milk
• Private space (not bathroom)
• For one year after child's birth
• Applies to FLSA-covered employers

Wage Theft and Unpaid Wages

Common Wage Violations

Minimum wage violations:

• Paying below $7.25/hour
• Not making up tip shortfall
• Illegal deductions below minimum

Overtime violations:

• Not paying overtime after 40 hours
• Misclassifying as exempt
• Off-the-clock work
• Averaging hours across weeks

Other violations:

• Late payment of wages
• Failure to pay final wages
• Illegal deductions
• Not paying agreed wage rate

Filing a Wage Claim

Texas Workforce Commission:

• Deadline: 180 days from when wages were due
• Phone: 800-832-9243
• Website: twc.texas.gov{rel="nofollow"}

Process:

1. File wage claim with TWC
2. TWC investigates
3. Preliminary determination issued
4. Appeal rights if disputed
5. Collection efforts if employer doesn't pay

Federal FLSA Claims

For minimum wage and overtime:

• File complaint with Department of Labor
• Or file private lawsuit
• 2-year deadline (3 years if willful)

Damages for Wage Violations

Texas Payday Law

Administrative claims:

• Unpaid wages
• Administrative penalties to state

Federal FLSA

Private lawsuit damages:

• Unpaid wages owed
• Liquidated damages (equal to unpaid wages = double damages)
• Attorney's fees and costs

Willful violations:

• 3-year statute of limitations (instead of 2)
• Double damages presumed

Misclassification Issues

Independent Contractor vs. Employee

Factors considered:

• Control over work methods
• Financial investment
• Opportunity for profit/loss
• Permanency of relationship
• Skill required
• Integration into business

Consequences of misclassification:

• Denied overtime pay
• No minimum wage protection
• No unemployment benefits
• Tax implications

Exempt vs. Non-Exempt

To be exempt, must meet:

• Salary basis test (paid salary, not hourly)
• Salary level test (minimum threshold)
• Duties test (executive, administrative, professional)

All three required for exemption

Practical Steps

Tracking Your Hours

1. Keep personal records of hours worked
2. Note start/end times and breaks
3. Document off-the-clock work requests
4. Save pay stubs and records

If You're Not Being Paid Correctly

1. Calculate what you should have received
2. Raise issue with employer (in writing)
3. Keep copies of all communications
4. File TWC claim within 180 days
5. Consult an attorney for complex cases

Common Questions

Can my employer make me work overtime?

Yes. Employers can require overtime. The issue is whether they pay for it. Non-exempt employees must receive time-and-a-half for hours over 40.

Can I be fired for filing a wage claim?

No. Retaliation for filing a wage claim is prohibited. If you're fired for filing, you may have additional claims.

What if my employer says I'm exempt?

Being called "exempt" or paid salary doesn't automatically make you exempt. You must meet specific duties tests. Many employees are misclassified.

Can I recover unpaid wages from years ago?

Federal FLSA has a 2-year deadline (3 for willful violations). Texas Payday Law has 180 days. Act quickly to preserve claims.

Finding Legal Help

Free Resources

• TWC Wage Claims: twc.texas.gov | 800-832-9243
• Department of Labor: dol.gov | 1-866-487-9243
• Texas RioGrande Legal Aid: trla.org

Employment Attorneys

For unpaid wage claims:

• Many work on contingency
• Free consultations available
• Can recover attorney's fees if successful

Related Resources

• Texas Wrongful Termination
• Texas Workplace Discrimination
• Houston Employment Law
• Dallas Employment Law

Legal Disclaimer

This guide provides general information about Texas wage and hour laws and is not legal advice. For advice about your situation, consult a licensed Texas employment attorney.

Official Resources:

• TWC Wage Claims: twc.texas.gov{rel="nofollow"} | 800-832-9243
• Department of Labor: dol.gov{rel="nofollow"} | 1-866-487-9243