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When are employers required to give employees overtime pay?

Many workers in Texas are eligible for overtime pay. It’s important to understand when employers must provide overtime and how much they are required to pay to employees who put in those extra work hours.

What is considered overtime?

There are both federal and state laws pertaining to overtime work. Non-exempt employees are entitled to overtime for every hour they work past a 40-hour work week. This stands regardless of how many hours worked per day. For example, a full-time non-exempt employee might work for eight hours two days of the week and then 10 hours two other days of the week. This would amount to 36 hours per week, which would not entitle the worker to overtime pay. However, if they put in six hours for a different day during that same week, it would come to 42 hours worked that week, which would entitle them to overtime pay.

Which employers are required to pay overtime?

Most employers are required to pay overtime. Companies that are covered by the federal Fair Labor Standards Act and employ non-exempt workers are required to offer overtime to those working past the standard 40 hours per week. Employees are also entitled to overtime pay when they work over eight hours per day and their total work week surpasses 40 hours. When a worker exceeds 40 hours of work in a week, overtime must be paid to them at one and a half times their normal rate of pay.

Although many large businesses typically offer overtime, some small and local businesses offer it as well.

Employees paid on a salary basis can receive overtime pay in certain situations. A salaried employee must earn at least $684 per week and earn the same pay each pay period. However, if an employee’s pay is docked for any reason, it means that they are not considered salaried during that time. This entitles them to overtime.

Employers must pay for overtime work when the law requires it.