Employees in Texas have the right to work for fair wages. Some of the terms that ensure this are set by state law, and others are set by federal law. In Texas, overtime pay is one of the terms that is set by federal law and must be followed precisely.
Some employees may think that overtime is dependent upon company policy, but that isn’t the case. Instead, employees who are due overtime pay must be paid at a rate of 1.5 times their normal hourly wage.
When is overtime required?
All employers must pay employees overtime if the employee works more than 40 hours in a week. The first 40 hours are paid at the employee’s normal hourly rate, but anything else is paid at the overtime rate. Employers must have a standard work week that starts on the same day each week and ends on the same day each week.
Do all employees qualify for overtime?
Only nonexempt workers qualify for overtime, and that is a designation that applies to most hourly employees. Salary workers don’t qualify for overtime unless they meet the criteria for an exemption. In some cases, professionals, administrators, and executives will be exempt from overtime pay.
What happens if there is a holiday during the work week?
Employees are only required to receive overtime on holidays if the hours they work on those days are in excess of 40 hours for the work week. Employers don’t have to apply overtime pay to any paid time off or sick leave, even if the worker takes those options during a week that would otherwise qualify for overtime, because overtime is based solely on hours worked.
Anyone who doesn’t receive their overtime pay as required may opt to take legal action. Working with someone familiar with these matters may be beneficial since these cases can be complex.