Overtime pay can often be confusing, but understanding how it’s calculated in Texas can help you ensure you’re paid fairly. State follows federal guidelines when it comes to overtime pay, and you may find it helpful to understand what those guidelines are.
What counts as overtime?
Overtime is any work done beyond 40 hours in a workweek. While some people assume that overtime only applies after eight hours in a day, Texas calculates overtime on a weekly basis, not daily. So, if you work 45 hours in a week, the 5 extra hours are eligible for overtime pay.
Regular hourly rate vs. overtime rate
To calculate overtime pay, you need to determine your regular hourly rate. If you earn a fixed salary, your hourly rate is calculated by dividing your weekly salary by the total hours worked. For example, if you earn $800 per week and work 40 hours, your regular hourly rate is $20. Any hours worked beyond the 40-hour mark should be paid at $30 per hour (1.5 times your regular rate).
Are salaried employees eligible?
Salaried employees can be eligible for overtime if they are non-exempt under the Fair Labor Standards Act (FLSA). Exempt employees, on the other hand, do not qualify for overtime, but this classification depends on the nature of their job and duties. Just because you’re salaried doesn’t mean you’re automatically exempt from overtime.
When is overtime not required?
The state doesn’t require overtime in certain situations, such as for independent contractors, certain executives, professionals, and administrative workers. However, even in these cases, employers must follow the FLSA’s rules to ensure the right classifications.
Understanding how overtime pay is calculated in Texas is essential for ensuring you’re compensated fairly for all your hours worked.
