Texas Exempt Employees: FLSA Exemptions & Salary Requirements (2026)

Understanding whether you're classified as an exempt or non-exempt employee is crucial to knowing your rights to overtime pay in Texas. While Texas doesn't have its own state-specific exemption rules, employers must follow federal Fair Labor Standards Act (FLSA) requirements when determining exempt status.

Understanding Exempt vs. Non-Exempt Employees

Under the FLSA, employees are presumed to be non-exempt (entitled to overtime pay) unless their employer can prove they meet specific exemption criteria. The distinction determines whether you receive overtime pay (time-and-a-half) for hours worked beyond 40 in a workweek.

Non-exempt employees must receive overtime pay at 1.5 times their regular rate for all hours worked over 40 in a workweek. Exempt employees are not entitled to overtime pay, regardless of how many hours they work.

Federal FLSA Exemption Standards in Texas

Since Texas has no state-specific overtime law, the federal FLSA governs exemption classifications throughout the state. To qualify as exempt, employees must meet both salary and duties tests.

Salary Threshold Requirements

As of 2024, the minimum salary threshold for most white-collar exemptions is:

• $684 per week ($35,568 annually)

This threshold increased from the previous $455/week in January 2020. Employees paid less than this amount are automatically non-exempt, regardless of their job duties.

Important: Proposed increases to $1,128/week were blocked by federal courts in 2024. The current threshold remains $684/week until further regulatory changes.

Salary Basis Test

Exempt employees must be paid on a "salary basis," meaning:

• They receive a predetermined amount each pay period
• The salary doesn't vary based on quality or quantity of work
• Deductions can't be made for partial-day absences (with limited exceptions)
• They receive their full salary for any week they perform work

Improper salary deductions can result in loss of exempt status.

Common White-Collar Exemptions in Texas

The FLSA provides several categories of exemptions, each with specific duties requirements.

Executive Exemption

To qualify for the executive exemption, employees must:

• Earn at least $684/week on a salary basis
• Have primary duty of managing the enterprise or a recognized department/subdivision
• Customarily and regularly direct the work of at least two full-time employees (or equivalent)
• Have authority to hire/fire or have their recommendations given particular weight

Texas example: A restaurant manager who supervises 5 servers, makes scheduling decisions, and participates in hiring decisions would likely qualify for this exemption if paid the minimum salary.

Administrative Exemption

Administrative employees must:

• Earn at least $684/week on a salary basis
• Have primary duty of office or non-manual work directly related to management or general business operations
• Exercise discretion and independent judgment on significant matters

Texas example: A human resources specialist who develops company policies, investigates employee complaints, and makes recommendations on personnel matters may qualify, but an HR assistant who primarily performs routine clerical tasks would not.

Professional Exemption

The professional exemption applies to:

Learned professionals:

• Earn at least $684/week salary
• Primary duty requires advanced knowledge in a field of science or learning
• Advanced knowledge acquired through prolonged specialized instruction

Creative professionals:

• Earn at least $684/week salary
• Primary duty requires invention, imagination, originality, or talent in a recognized artistic or creative field

Texas examples: Licensed engineers, accountants, lawyers, doctors, and teachers typically qualify as learned professionals. Graphic designers, writers, and musicians may qualify as creative professionals if their work requires true originality and creativity.

Computer Employee Exemption

Computer professionals may be exempt if they:

• Earn at least $684/week salary OR $27.63/hour
• Work as computer systems analysts, programmers, software engineers, or similar roles
• Primary duty involves systems analysis, programming, software engineering, or similar work requiring theoretical and practical application of specialized knowledge

Texas note: Help desk technicians, data entry operators, and those who primarily use computers rather than design/develop systems typically don't qualify.

Outside Sales Exemption

Outside sales employees are exempt if:

• Primary duty is making sales or obtaining orders/contracts
• They are customarily and regularly engaged away from the employer's place of business

No minimum salary required for this exemption.

Texas application: Pharmaceutical sales representatives visiting doctors' offices, or industrial equipment sales professionals visiting client facilities typically qualify. Inside sales representatives working from an office or call center do not.

Highly Compensated Employee Exemption

Employees earning $107,432 or more annually (including at least $684/week salary) may qualify for a simplified exemption if they:

• Customarily and regularly perform at least one duty of an exempt executive, administrative, or professional employee

This exemption has a less stringent duties test than standard exemptions.

Common Exemption Misclassification Issues in Texas

Many Texas employers incorrectly classify employees as exempt, often in these scenarios:

Job Title Doesn't Determine Exemption

Simply calling someone a "manager," "administrator," or "professional" doesn't make them exempt. The actual job duties and salary determine exemption status.

The "Salary Doesn't Equal Exempt" Misconception

Being paid a salary doesn't automatically make you exempt. You must also meet the duties test for a specific exemption category. Many salaried employees in Texas are still entitled to overtime.

Insufficient Discretion and Independent Judgment

For administrative exemptions, employees must exercise genuine discretion on significant matters. Following detailed procedures or making routine decisions doesn't satisfy this requirement.

Performing Non-Exempt Work

If an employee spends most of their time performing non-exempt duties (even if they have an exempt job title), they may not qualify for exemption. Texas courts look at the primary duty actually performed.

Remedies for Misclassification in Texas

If you've been misclassified as exempt when you should be non-exempt, you have several options:

File a Complaint with the Department of Labor

The U.S. Department of Labor's Wage and Hour Division investigates FLSA violations. You can file a complaint:

• Online: Through the WHD website
• Phone: 1-866-4-US-WAGE (1-866-487-9243)
• In person: At your local WHD office

File a Texas Workforce Commission Wage Claim

While TWC primarily handles unpaid wages under Texas Payday Law, they can also address certain federal overtime violations. However, DOL complaints are generally more effective for FLSA misclassification issues.

File a Private Lawsuit

You can sue your employer for:

• Back overtime wages for up to 2-3 years (3 years for willful violations)
• Liquidated damages equal to the unpaid overtime (essentially doubling your recovery)
• Attorney's fees and costs

Texas has no statute specifically addressing exemption misclassification, so these claims proceed under federal FLSA law.

Retaliation Protections

Both the FLSA and Texas Labor Code prohibit retaliation against employees who:

• Complain about unpaid overtime
• File wage claims or lawsuits
• Participate in investigations

If you face retaliation, you may have additional legal claims.

Special Considerations for Texas Industries

Oil and Gas Industry

Many Texas oil and gas workers are misclassified as exempt. Field supervisors, landmen, and mid-level managers often don't meet the strict duties tests despite receiving salaries above the threshold.

Healthcare

Doctors, lawyers, and teachers have special exemption rules. However, many medical technicians, nurses (without advanced practice degrees), and other healthcare workers are non-exempt regardless of salary.

Technology Sector

Texas has a booming tech industry, but not all tech workers qualify for the computer employee exemption. The work must involve true systems analysis, programming, or software engineering—not just using technology.

Hospitality and Restaurant Management

Assistant managers and shift supervisors in Texas restaurants and hotels are frequently misclassified. These positions often involve substantial non-exempt work (serving customers, cleaning, cooking) that may prevent exemption.

Documentation and Record-Keeping

If you suspect misclassification:

1. Keep detailed time records of all hours worked, including work performed outside normal business hours
2. Document your actual job duties performed each day
3. Save your job description and any written policies
4. Preserve pay stubs showing your salary and any overtime payments
5. Note any salary deductions made by your employer

This documentation will be crucial if you need to prove you were misclassified.

Relationship to Other Texas Wage Laws

Exempt status under the FLSA affects your rights under various wage laws:

• Overtime pay: Exempt employees aren't entitled to overtime under the FLSA
• Minimum wage: Exemptions apply to overtime only; exempt employees must still receive at least minimum wage for all hours worked
• Meal breaks: Texas has no meal or rest break requirements for adults, regardless of exempt status
• Final paychecks: Texas Payday Law applies to both exempt and non-exempt employees

Frequently Asked Questions

Can my employer switch me between exempt and non-exempt status?

Yes, but the classification must match your actual duties and salary at any given time. Employers can't manipulate exempt status to avoid overtime in busy periods.

Does working remotely affect my exempt status in Texas?

No. Remote work doesn't change exemption analysis. The same salary and duties tests apply whether you work from home, an office, or elsewhere.

Can I be exempt from overtime but still entitled to meal breaks in Texas?

Texas has no state law requiring meal or rest breaks for adult employees, exempt or non-exempt. Break requirements depend on employer policy or union agreements, not exemption status.

What if I'm paid a salary but work fewer than 40 hours per week?

If you're properly classified as exempt, your employer must pay your full salary for any week you perform work, even if you work less than 40 hours (with limited exceptions for full-day absences).

Can I waive my right to overtime pay in Texas?

No. You cannot waive your rights under the FLSA. Any agreement to work as an exempt employee when you don't meet exemption criteria is unenforceable.

How far back can I recover unpaid overtime in Texas?

Generally 2 years, or 3 years if the violation was willful. The statute of limitations begins running from each paycheck that shorted you overtime.

Does being paid $684/week automatically make me exempt?

No. You must meet both the salary threshold AND the duties test for a specific exemption category. Salary alone doesn't create exempt status.

Getting Legal Help

Exemption classification can be complex, and misclassification can cost you thousands in unpaid overtime. If you believe you've been misclassified:

• Document your situation using the guidelines above
• Consult an employment lawyer who handles wage and hour cases
• Don't delay – statutes of limitations apply to overtime claims

Many employment lawyers offer free consultations and work on contingency (you pay only if you win) for wage and hour cases.

Legal Disclaimer: This article provides general information about Texas and federal employment law and should not be construed as legal advice. Employment law is complex and fact-specific. For advice about your specific situation, consult a qualified employment attorney.

Resources:

• U.S. Department of Labor Wage and Hour Division: 1-866-4-US-WAGE (1-866-487-9243) | www.dol.gov/whd
• Texas Workforce Commission: 1-800-832-9243 | www.twc.texas.gov