Currently, the minimum wage in Texas is $7.25 an hour, which is the same as the current federal minimum wage.
Overtime pay is required when an employee works over 40 hours in a single work week. A single work week is defined as "seven consecutive work days." Overtime pay must be paid at one and a half times an employee's regular hourly wage.
Note: $10.88 per hour is the minimum overtime wage for employees who have a regular hourly wage of $7.25. If your regular wage is more than $7.25 per hour, you must calculate your overtime pay at one and a half times your hourly rate.
The Department of Labor has listed very specific exemptions in relation to the federal minimum wage law, which means that certain types of employees are not required to be paid the minimum wage.
Tipped Employees
A common example of employees who are exempt from the minimum wage are tipped employees. If an employee earns regular tips, employers are permitted to pay those employees a minimum hourly rate of $2.13. So, what are regular tips?
An employee is considered to earn regular tips if they earn at least $30 in tips a month. This is a small amount, so there are other specific rules that employers must follow to ensure that tipped employees are ultimately earning at least the minimum wage.
For example, if a tipped employee is paid $2.13 an hour and receives tips, the total amount earned during that hour must add up to at least the minimum wage. If a tipped employee does not make at least the minimum wage with their hourly rate of pay, plus tips, the employer must make up the difference. Ultimately, the rule guarantees that tipped employees are to earn at least the minimum wage, but they can also earn over the minimum wage in tips.
The requirements for an employer to pay tipped employees are fairly complicated; therefore, if you believe that you're not receiving your correct pay as a tipped employee, please contact our office immediately to speak to an attorney.
Other employees/occupations that are exempt from the minimum wage include:
These exemptions involve more than a job title or work in a certain industry. Ultimately, the burden is on the employer to prove that an employee falls within a specified exemption.
Texas follows the rules set forth by the federal government for overtime provisions, which means that all employees must receive overtime pay unless they are exempt. Employers will frequently misclassify an employee as exempt from overtime pay, when in fact they are not exempt—meaning that the employee is entitled to overtime. It is therefore important to understand who is eligible for overtime pay.
Salaried Employees
One of the most common misclassifications is for salaried employees. Being paid on a salary basis does not mean that you are exempt from overtime pay. The burden is on the employer to prove that your position qualifies as one of the exemptions from overtime pay.
To be considered a "salaried employee," an employee must earn no less than $455 per week, exclusive of any deductions ("board, lodging, or other facilities"); and the employee’s salary cannot be reduced because of variances in the number of hours worked per week (unless the employee takes unpaid leave).
Executive, Administrative and Professional Exemptions
In order for an employee to fall within the "Executive, Administrative and Professional Exemption," the employee must be a salaried employee and satisfy the specific job duties for each respective exemption.
1. Executive:Highly Compensated Employee
Highly compensated employees are those who perform office or non-manual labor work, who are compensated annually with $100,000 or more, and who perform at least one of the duties of the exempt executive, administrative or professional employees (as discussed above). In addition, they must meet the requirements for the salaried employee, meaning that they must be paid at least $455 a week on a salary basis.
Computer-Related Occupations
The criteria to qualify for a computer employee exemption include:
Note: The computer employee exemption does not include employees engaged in the manufacture or repair of computer hardware and related equipment. Employees whose work is highly dependent upon, or facilitated by, the use of computers and computer software programs (e.g., engineers, drafters and others skilled in computer-aided design software)—but who are not primarily engaged in computer systems analysis and programming, or other similarly skilled computer-related occupations identified in the primary duties list outlined above—are also not exempt under the computer employee exemption.
The list for additional overtime-exempt employees/occupations is long and very specific. The exemptions are highly technical and require more than a job title or work in a specific industry:
It cannot be overemphasized that the above exemptions are highly technical and require more than a job title or work in a specific industry.
***
If you have questions about any of the above exemptions, or any other questions about your entitlement to overtime, give us a call.
If you believe that you may be owed unpaid minimum wage and/or overtime, please contact our office to talk to an attorney with experience in minimum wage and overtime violations.