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Texas Wages and Hours: Worker Rights Under State and Federal Law

Bottom Line: Texas has minimal state wage protections. The state minimum wage remains $7.25 per hour—the same as federal law—and Texas has no separate overtime rules. The Texas Payday Law mainly covers payment timing and final paychecks, not wage rates or overtime. Most Texas workers rely on federal Fair Labor Standards Act (FLSA) protections for unpaid wages, overtime, and minimum wage violations.

If your employer hasn’t paid you properly, federal law is usually your best option. Federal claims have longer filing deadlines (2-3 years vs. 180 days) and stronger remedies including double damages.

Texas Minimum Wage: No State Increase

Texas follows the federal minimum wage of $7.25 per hour. Unlike many states, Texas has not raised its minimum wage above the federal floor.

Key Facts:

  • Regular employees: $7.25/hour
  • Tipped employees: $2.13/hour base (employer must ensure tips bring total to $7.25/hour)
  • No local increases allowed: Texas law prohibits cities from setting higher minimum wages

The federal FLSA sets the $7.25 minimum. If federal law ever increases the minimum wage, Texas will follow that increase automatically.

Example: Austin and other Texas cities cannot require a $15/hour minimum wage. State law preempts local wage ordinances.

Overtime Pay: Federal Law Only

Texas has no state overtime law. All overtime rules come from the federal FLSA.

Federal FLSA Overtime Requirements:

  • 1.5x regular pay rate after 40 hours in a workweek
  • Weekly calculation (not daily)
  • Applies to non-exempt employees

Example: You work 50 hours in one week at $15/hour. You’re owed 40 hours at $15 ($600) plus 10 overtime hours at $22.50 ($225), totaling $825.

Common Exemptions:

  • Executive, administrative, and professional employees (must meet salary and duty tests)
  • Outside sales employees
  • Certain computer professionals
  • Independent contractors (if properly classified)

Many employers misclassify employees as exempt to avoid paying overtime. Simply having a salary or job title like “manager” doesn’t automatically make you exempt.

What Texas Does NOT Require

Texas law has significant gaps compared to other states. Texas does NOT require:

❌ Meal breaks – Employers can require you to work through lunch with no break

❌ Rest breaks – No required 10-minute breaks during shifts

❌ Paid sick leave – Employers don’t have to provide any sick time

❌ Higher state minimum wage – Still $7.25 (no state increase)

❌ Daily overtime – Working 12 hours in one day doesn’t trigger overtime (only weekly totals matter)

❌ Spread-of-hours pay – Split shifts or long workdays don’t require extra pay

❌ Waiting time penalties – No penalties if employer delays final paycheck (just standard wages owed)

❌ Predictive scheduling – Employers can change schedules without notice or extra pay

This makes Texas one of the most employer-friendly states for wage and hour laws. However, federal FLSA protections still apply to most workers.

Texas Payday Law: What It Covers

The Texas Payday Law (TPL) is the main state wage statute, but it’s limited in scope. It covers when and how you get paid, not how much.

Payment Frequency Requirements

Employers must pay employees at least:

  • Exempt employees: Once per month
  • Non-exempt employees: At least twice per month (semi-monthly)

Payment must occur on regular, designated paydays.

Final Paycheck Timing

When employment ends, Texas law sets different deadlines depending on whether you quit or were fired:

Involuntary termination (fired, laid off): Final paycheck due within 6 calendar days

Voluntary resignation (quit): Final paycheck due on next regular payday

Example 1: You’re fired on January 10. Your employer must pay you by January 16 (6 calendar days).

Example 2: You quit on January 10. Regular payday is the 25th. Your final check is due January 25 (next regular payday).

Paystub Requirements

Employers must provide paystubs showing:

  • Pay period covered
  • Gross wages earned
  • All deductions (taxes, insurance, etc.)
  • Net pay

Illegal Deductions

Texas Payday Law prohibits certain deductions without written authorization:

  • Cash register shortages (unless you’re the only person with access)
  • Damage to company property (unless caused by intentional misconduct or gross negligence)
  • Loss of company property

However, employers can deduct:

  • Court-ordered garnishments
  • Benefits you’ve authorized (health insurance, 401k)
  • Federal and state taxes

Example: Your cash register is short $50. Multiple employees use it. The employer cannot deduct this from your paycheck unless you signed a written agreement allowing it.

Common Wage Violations in Texas

1. Unpaid Overtime

The most common violation. Employers may:

  • Misclassify employees as exempt
  • Fail to track all hours worked
  • Require “off the clock” work
  • Not count prep time, closing duties, or training
  • Average hours across pay periods (illegal)

Example: Your employer says “we don’t pay overtime” or gives you comp time instead of overtime pay. Both are illegal for non-exempt employees.

2. Minimum Wage Violations

Common scenarios:

  • Tipped employees don’t receive enough tips to reach $7.25/hour
  • Training periods paid below minimum wage
  • Illegal tip pooling (forcing you to share tips with managers)
  • Requiring you to buy uniforms or tools, bringing pay below minimum wage

3. Unpaid Work Time

Employers must pay for all hours worked, including:

  • Pre-shift preparation
  • Post-shift cleanup
  • Mandatory meetings and training
  • Working through meal breaks
  • On-call time (in some circumstances)

4. Illegal Paycheck Deductions

Deductions without proper authorization for:

  • Broken equipment
  • Customer walkouts
  • Cash register shortages
  • Uniforms or tools

5. Retaliation

It’s illegal to fire, demote, or punish employees for:

  • Complaining about unpaid wages
  • Filing a wage claim
  • Asking questions about overtime pay

Independent Contractor Misclassification

Many Texas employers misclassify employees as independent contractors to avoid paying:

  • Minimum wage
  • Overtime
  • Payroll taxes
  • Workers’ compensation insurance

Federal Economic Reality Test determines true classification:

  1. How much control does the company have over your work?
  2. Can you make a profit or loss based on your work?
  3. Do you invest in equipment or materials?
  4. Does your work require special skills?
  5. Is the relationship permanent or temporary?
  6. Is your work integral to the business?

Example: A construction company calls you an independent contractor but tells you when to work, provides all tools, and controls how you do the job. You’re likely an employee entitled to wage protections.

Misclassified workers can file claims to recover unpaid overtime and minimum wage violations.

Filing a Wage Claim: TWC vs. Department of Labor

You have two main options for filing wage claims in Texas:

Texas Workforce Commission (TWC)

Handles: Texas Payday Law claims

  • Payment timing issues
  • Final paycheck disputes
  • Illegal paycheck deductions
  • Paystub violations

Filing deadline: 180 days from when wages were due (very short)

Process: File online at twc.texas.gov, phone, or mail

Limitations:

  • Cannot hear minimum wage or overtime claims
  • No liquidated damages (double damages)
  • No private right to sue after TWC dismisses claim

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

Handles: Federal FLSA claims

  • Minimum wage violations
  • Unpaid overtime
  • Misclassification
  • Recordkeeping violations

Filing deadline: 2-3 years from violation (much longer than Texas)

Process: File complaint at dol.gov/agencies/whd or call 1-866-4-USWAGE

Advantages:

  • Longer filing deadline
  • Can recover liquidated damages (double unpaid wages)
  • Can pursue private lawsuit after DOL investigation
  • Covers minimum wage and overtime (which TPL doesn’t)

Which Option to Choose

Choose federal DOL/FLSA claims when:

  • You have unpaid overtime (Texas Payday Law doesn’t cover this)
  • You have minimum wage violations
  • You were misclassified as exempt or independent contractor
  • More than 180 days have passed since violation

Choose TWC only when:

  • You have simple payment timing issues
  • Final paycheck hasn’t been paid
  • Illegal deductions from paycheck
  • Problem is very recent (within 180 days)

You can file both if you have multiple types of violations. Many workers file federal FLSA claims because they offer better remedies.

Statute of Limitations Comparison

Filing deadlines are critical. Missing a deadline means losing your right to recover wages.

Claim Type Filing Deadline Notes
Texas Payday Law 180 days Very short; starts when wages were due
Federal FLSA (no willful violation) 2 years Most common timeframe
Federal FLSA (willful violation) 3 years Employer knew or showed reckless disregard for law
Retaliation claims Varies Usually 180 days for TWC; 2-3 years for federal

Example: Your employer hasn’t paid overtime for two years. You cannot file a Texas Payday Law claim (deadline passed after 180 days). But you can still file a federal FLSA claim because you’re within the 2-year window.

Willful violations extend the deadline to three years. This applies when employers intentionally violate wage laws or show reckless disregard (like being warned about violations and ignoring them).

Damages and Remedies

What you can recover depends on which law applies:

Texas Payday Law Recovery

  • Unpaid wages owed
  • No liquidated damages
  • No attorney fees (unless you file private lawsuit after TWC dismisses claim)

Federal FLSA Recovery

  • Unpaid wages (back pay)
  • Liquidated damages (equal to back pay, essentially doubling recovery)
  • Attorney fees and court costs
  • Pre-judgment and post-judgment interest

Example: Employer owes you $5,000 in unpaid overtime. Under Texas Payday Law, you recover $5,000. Under federal FLSA, you recover $10,000 ($5,000 wages + $5,000 liquidated damages) plus attorney fees.

This is why federal FLSA claims are usually more favorable for workers.

Retaliation Damages

If your employer fires or punishes you for filing a wage claim:

  • Reinstatement to your job
  • Lost wages and benefits
  • Compensatory damages (emotional distress)
  • Punitive damages (in some cases)
  • Attorney fees

What to Do If You’re Not Getting Paid Properly

1. Document Everything

  • Keep your own record of hours worked (photos, notes, timesheets)
  • Save paystubs and any pay-related documents
  • Screenshot company communications about pay
  • Track exact dates and amounts of unpaid wages

2. Review Your Classification

  • Are you properly classified as exempt?
  • Should you be getting overtime?
  • Are you truly an independent contractor?

3. Calculate What You’re Owed

  • Count unpaid hours
  • Calculate overtime at 1.5x your regular rate
  • Add up illegal deductions
  • Note when final paycheck should have been paid

4. Report Internally First (Optional)

  • Tell your supervisor or HR about the problem
  • Put it in writing (email is best)
  • Keep copies of all communications

Some employers fix problems once they’re aware. But if they retaliate or ignore you, you’ll have documentation.

5. File a Complaint

  • For overtime/minimum wage: File with U.S. Department of Labor
  • For payment timing issues: File with Texas Workforce Commission
  • Both: If you have multiple violation types

6. Consider Legal Help

  • Complex cases benefit from employment attorneys
  • Many attorneys offer free consultations
  • Fee agreements often allow attorneys to recover fees from employer

7. Protect Yourself from Retaliation

  • Document any adverse actions after complaining
  • Know that retaliation is illegal
  • Report retaliation to the same agency handling your wage claim

Frequently Asked Questions

Q: Does Texas require lunch breaks?

No. Texas has no meal break or rest break requirements. Employers can require you to work 8+ hours with no break. However, federal law requires payment for short breaks (under 20 minutes) if provided. Meal breaks over 30 minutes can be unpaid if you’re completely relieved of duties.

Q: Can my employer make me work overtime without asking?

Yes. Employers can require mandatory overtime in Texas. They can discipline you for refusing. But they must PAY you overtime (1.5x) for all hours over 40 per week unless you’re properly exempt.

Q: I’m salaried—does that mean no overtime pay?

Not automatically. Being paid a salary doesn’t make you exempt from overtime. You must also meet federal “duties tests” (executive, administrative, or professional work) and usually earn at least $684/week ($35,568/year). Many salaried employees are actually entitled to overtime.

Q: Can I sue my employer directly for unpaid wages?

Yes. You can file a private lawsuit under federal FLSA without going through the Department of Labor first. For Texas Payday Law claims, you typically file with TWC first, then can pursue a lawsuit if TWC doesn’t resolve it.

Q: How long does a wage claim take?

Texas TWC claims typically take 3-6 months. Federal DOL investigations can take 6 months to over a year. Private lawsuits vary widely but often take 1-2 years.

Q: Will I get fired for filing a wage claim?

Retaliation for filing wage claims is illegal under both state and federal law. If your employer fires, demotes, or punishes you for complaining about unpaid wages, you have a separate retaliation claim. Document everything if this happens.

Related Topics

Take Action Now

If your employer hasn’t paid you properly, don’t wait. Texas Payday Law claims have only a 180-day deadline—that’s about six months. Federal FLSA claims give you 2-3 years, but evidence gets harder to gather over time.

File a complaint:

  • U.S. Department of Labor: dol.gov/agencies/whd or call 1-866-4-USWAGE
  • Texas Workforce Commission: twc.texas.gov or call 1-800-832-9243

Document your hours, save your paystubs, and act quickly to protect your rights.

Legal Disclaimer

This article provides general information about Texas wage and hour laws and is not legal advice. Wage and hour law involves complex federal and state rules that depend on your specific situation. If you have unpaid wages or questions about your rights, consult an employment attorney or contact the U.S. Department of Labor or Texas Workforce Commission. Filing deadlines are strict—don’t delay seeking help.

Last Updated: October 29, 2025