Wages and Overtime
Employees that are covered by the federal Fair Labor Standards Act (FLSA) are exempt from the Texas Payday Act since federal standards trump state-set standards.
The minimum wage for Texas employees equals the amount set by federal law, which is currently $7.25 per hour. Under the FLSA, employers do not have to pay tipped employees as much. Restaurant wait staff and others who rely on tips should be paid hourly wages of at least $2.13 per hour. This amount plus tips must be equal to or greater than $7.25 per hour. If tips fail to meet this minimum wage amount, it is the duty of the employer to make up the difference to their worker.
Overtime pay also follows the FLSA regulations. Employers must pay non-exempt employees time and a half for hours that exceed the standard 40-hour weekly limit. If an employee is earning the $7.25 minimum wage, their employer would have to pay them $10.88 per hour starting with the 41st hour worked within a given week.
Certain types of employees do not qualify for the time-and-a-half overtime premium. Businesses do not have to pay the additional overtime premium wages to workers who are employed in an executive, administrative or professional position (and paid at least $684 per week on a salary basis, or $35,568 annually).
The overtime pay rate for minimum wage workers in Texas amounts to $10.88 per hour (1.5 x $7.25). Typically, employers do not violate overtime laws by requiring employees to work overtime, (or "mandatory overtime"), when they are properly compensated at the premium rate required by law. However, Texas state law does prohibit mandatory overtime for nurses under certain circumstances.
Scheduling of Wages
Unless a recognized exemption exists, Texas workers must receive paychecks no less than twice a month and pay periods should be roughly the same length. Employees who don’t qualify for an overtime premium because of the nature of their job have to be paid at least once a month.
You should not have to guess when your paycheck will arrive or wait extra time for the money you earned. This is true regardless of the type of job you have. Failure of a company to process time sheet information in a timely manner is not an excuse. Likewise, a company cannot withhold wages because they haven’t been paid by a customer. In the event that the standard payday falls on a weekend or holiday, wages can be paid on the business day before or after the usual date.
Employees who are terminated from their position must be given their last paycheck with six calendar days of their dismissal. Should the worker leave voluntarily, the final payment can be made in accordance with the standard wage schedule.
Deductions from Wages
Typically, businesses cannot take deductions from their employees’ paychecks. However, this is legal in certain situations. State and federal taxes can be withheld, as well as court-ordered deductions to address back child support and other obligations. The deductions that are taken cannot drop the worker’s hourly pay rate below minimum wage.
Meals & Breaks in Texas
There is no Texas law requiring business to give workers breaks for meals or other reasons. When an employer does provide break periods of 20 minutes or less, employees must still be paid under federal law. A break of 30 minutes of more can be unpaid as long as the business does not require the employee to perform any work during that time.
Holidays, Vacation, & Sick Leave in Texas
Employers can decide if they want to provide paid holiday, vacation time and/or sick leave to their workers. Texas law does not mandate that wages be provided for time when an employee is not on the job.
Statute of Limitations
Claims for unpaid wages under the Texas Payday Act must be brought within 180 days from the date the wages were earned. Under the FLSA, suit must be filed within two years of the employer’s violation date.
The statute may be extended to three years if an employer’s violation of the FLSA was willful. Willful violation entails an employer showing reckless disregard for the FLSA violation or if the employer was aware their conduct was prohibited.
In addition to liability for unpaid wages, employers acting in bad faith can face penalties from the Texas Workforce Commission in an amount equal to the amount of the wages claimed or $1,000, whichever is less.
Additionally, employers may also be liable to pay liquidated damages in an amount equal to the unpaid wages. Employers are also liable for other incurred costs, including attorney’s fees. Cases can be brought on an individual basis or a collective basis for any workers subjected to the same employer violations.
Layoffs, Plant Closings, and WARN Notices
Business with at least 100 employees that are preparing for a mass layoff due to a plant closure or some other reason must provide at last 60 days’ notice to the Texas Workforce Commission. This is required under the rules of the federal Worker Adjustment and Retraining Notification (WARN) Act. The notice period allows the State Rapid Response Dislocated Worker Unit to reach out to affected employees regarding retraining and other job opportunities before they leave the company. If you were the victim of a mass layoff and believe you did not receive adequate notice, we can advise if your former employer was covered under the WARN Act and whether you are entitled to back pay or benefits because of the violation.
Consult a Committed Wage and Hour Law Firm in Texas
Bustos Law Firm, P.C. is dedicated to protecting and enforcing the rights of all workers. If you have experienced wage discrimination at work, call our Lubbock office at 806-780-3976 or contact us online to schedule a free consultation with a qualified attorney.
