Salaried employees often assume they’re exempt from overtime laws, especially in a state like Texas where labor policies lean business-friendly. But here’s the twist—being on a salary doesn’t always mean overtime pay is off the table. If you’re scratching your head trying to figure out whether you qualify for overtime or not, you’re not alone. Navigating Texas overtime laws for salaried employees can be tricky, but understanding them can make all the difference in your paycheck and your peace of mind.
Demystifying the Difference Between Exempt and Non-Exempt Status
The key to unlocking the secrets of Texas overtime rules lies in how an employee is classified: exempt or non-exempt. Salaried workers are often assumed to be exempt simply because they receive a consistent paycheck. However, that’s just one piece of the puzzle. The Fair Labor Standards Act (FLSA), which governs most wage and hour laws across the country—including in Texas—sets specific criteria to determine exemption.
To be exempt from overtime under federal law, which Texas follows, an employee must meet certain tests related to their job duties and earn a minimum salary threshold. Just getting a salary doesn’t automatically make someone exempt. That’s a common myth that leads to unpaid overtime and legal disputes. Employees whose job duties don’t meet the exemption criteria are still entitled to overtime pay, even if they’re salaried.
Salary Thresholds and the Duties Test
Let’s talk about numbers. As of now, the federal minimum salary threshold is $684 per week, or about $35,568 annually. If a salaried employee earns less than that, they’re typically entitled to overtime, regardless of their job description. But if they earn more, it doesn’t mean they’re automatically exempt. The duties they perform still have to qualify under one of the exemption categories like executive, administrative, or professional roles.
For example, a salaried manager in a retail store might qualify for the executive exemption if they regularly supervise two or more full-time employees and have authority in hiring or firing decisions. On the flip side, a salaried administrative assistant earning above the threshold may still be entitled to overtime if their duties are more clerical than decision-making. This is where Texas overtime laws for salaried employees become particularly nuanced.
Why Job Titles Don’t Tell the Whole Story
It’s easy to fall into the trap of assuming your job title determines your exempt status. But under Texas and federal labor standards, the actual duties matter more than what’s on paper. A fancy job title like “assistant manager” might suggest a position of authority, but if you’re spending most of your time stocking shelves or manning the register, you’re probably still non-exempt.
This gray area causes confusion among employers and employees alike. Many workers go years without realizing they’re legally owed overtime wages. The law takes substance over style seriously—what you do matters far more than what you’re called.
How Texas Law Aligns with Federal Standards
Texas doesn’t have its own state-specific overtime law, so it adheres strictly to the FLSA. That means all salaried employees in Texas fall under federal guidelines when it comes to overtime eligibility. One benefit of this approach is consistency. But it also means that Texas employees don’t enjoy additional protections that other states, like California, may offer.
So, if you’re a salaried employee in Texas, the same federal salary thresholds and job duty tests apply to you. This streamlined approach may simplify things on paper, but in reality, it places more responsibility on employees to understand their rights and on employers to classify workers accurately.
Common Misconceptions About Salaried Overtime Rights
Many people still believe that only hourly employees can earn overtime. That’s simply not true. The misconception often stems from the outdated idea that salary equates to authority and managerial control. In modern workplaces, especially in service and tech industries, salaried employees frequently take on tasks that don’t meet the exemption criteria.
Another widespread myth is that working over 40 hours occasionally doesn’t warrant overtime if you’re salaried. In fact, if you’re non-exempt and putting in over 40 hours in any given workweek, you’re legally entitled to time-and-a-half pay for those extra hours—even if it only happens once.
Legal Recourse and Back Pay for Misclassified Employees
If you suspect you’ve been misclassified as exempt and denied overtime pay, you have options. Both the U.S. Department of Labor and private employment law attorneys handle cases related to wage theft and unpaid overtime. Misclassification is more common than you’d think, and the law is on the employee’s side when violations occur.
In Texas, back pay for unpaid overtime can stretch up to two years—or even three if the violation is deemed willful. This could mean a significant payout if you’ve consistently worked overtime without compensation. Employers may also be hit with penalties, interest, and even attorney’s fees, making it more worthwhile for affected employees to come forward.
Why Employers Must Stay Vigilant
Misclassifying employees, whether intentionally or not, can lead to serious legal and financial repercussions. For Texas employers, staying compliant with the Texas overtime laws for salaried employees isn’t just good practice—it’s essential for avoiding lawsuits and preserving company reputation. Regular audits of job descriptions, duties, and salaries can help ensure that everyone is properly classified and compensated.
Employers who value their teams should also encourage transparency and open discussions about compensation. Ignoring or brushing off concerns about overtime eligibility can cost more in the long run than addressing the issue proactively.
What Employees Should Watch Out For
If you’re unsure about your exemption status, start by reviewing your job description and weekly earnings. Ask yourself whether your primary duties align with what the law considers exempt tasks. If you’re performing mostly routine or manual work—even if you’re salaried—you may be eligible for overtime.
Also, keep track of your hours. Even salaried employees can benefit from recording time spent working, especially when workloads surge or project deadlines demand extra hours. In the event of a legal claim, those records could make all the difference.
A Closer Look at Recent Developments
Overtime laws aren’t static, and recent proposals by the Department of Labor aim to increase the salary threshold even further. If approved, this change would expand overtime eligibility to millions more salaried workers across the country, including in Texas. It’s worth staying updated on these developments, especially if you’re teetering near the current salary cutoff.
The push for reform reflects growing concern over wage stagnation and worker burnout—two issues that often hit salaried employees the hardest. As the landscape shifts, so too will the protections afforded to Texas workers.
Conclusion: Know Your Rights and Stay Informed
Understanding Texas overtime laws for salaried employees is essential whether you’re an employee trying to protect your income or an employer aiming to stay compliant. The line between exempt and non-exempt status isn’t always clear-cut, and assumptions based on salary alone can lead to costly mistakes. Knowing the law, asking the right questions, and documenting your work hours are all powerful tools in making sure your labor is fairly rewarded.
For Texas salaried employees, the message is simple: being paid a salary doesn’t automatically mean you’re exempt from overtime. It’s your job duties—and your employer’s understanding of the law—that ultimately determine what you’re owed. Stay proactive, stay informed, and don’t be afraid to stand up for your rights.
