Texas Overtime Laws 2026: 40-Hour/1.5× Rule, $7.25 Minimum, No Daily OT
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Texas overtime at a glance
Texas does not have its own overtime law, so Texas overtime laws are effectively the federal Fair Labor Standards Act: 1.5× pay for any hours over 40 in a workweek, no daily overtime threshold, no mandatory double time, and no state minimum wage above the federal $7.25 floor. The state standard is enforced through the Texas Workforce Commission and, in parallel, by the U.S. DOL Wage and Hour Division.
The Federal 40-Hour Weekly Rule
Under FLSA, the overtime trigger is 40 hours in a fixed workweek — a recurring 168-hour period the employer defines. Hours worked beyond 40 in that window are paid at 1.5× the regular rate. A $15/hour non-exempt worker in Houston who clocks 48 hours in a week earns 40 hours at $15 ($600) plus 8 hours at $22.50 ($180), for $780 gross that week. Run the math yourself with the Texas Overtime Calculator.
Texas employers can set any workweek (Sunday-to-Saturday, Monday-to-Sunday, etc.) but cannot average hours across weeks. A worker who puts in 50 hours one week and 30 the next is owed 10 hours of overtime for the 50-hour week, even though the two-week average is 40.
Texas Minimum Wage: Stuck at $7.25
Texas has not raised its minimum wage above the federal $7.25/hour, and that figure still applies in 2026. The Texas Minimum Wage Act explicitly ties the state rate to federal law. Cities in Texas are preempted from setting higher local minimums under state law, so Houston, Dallas, and Austin cannot impose a $15 floor the way Los Angeles or Seattle can.
This matters for salaried non-exempt workers. If a Texas employer pays a $400/week salary and the worker logs 60 hours, the implied hourly rate is $6.67 — below federal minimum. The employer owes back wages to bring the worker up to $7.25 for all 60 hours, plus overtime on top. Salary alone does not override minimum wage or overtime rules.
The Texas Workforce Commission’s Role
The Texas Workforce Commission (TWC) accepts wage claims for unpaid wages, including overtime, but its jurisdiction is limited to claims under Texas law. Because Texas adopts the federal standard, TWC effectively enforces the 40-hour/1.5× rule. Workers can also file directly with the U.S. Department of Labor’s Wage and Hour Division, which has broader enforcement power and can investigate systemic violations across an employer.
TWC claims must be filed within 180 days of the wage violation. Federal FLSA claims have a two-year statute of limitations (three years for willful violations), so workers who miss the TWC window can still pursue federal remedies. Many workers file with both.
Texas Industries Prone to Overtime Violations
Oil and gas field workers, especially roughnecks and roustabouts on rotating shifts, routinely log 80-to-100-hour weeks during drilling campaigns. Employers sometimes try to pay a flat day rate and skip overtime calculations. DOL audits in the Permian Basin have repeatedly found this practice illegal. The day rate must be converted to a regular hourly rate, and overtime is owed for hours over 40.
Healthcare is the second hotspot. Texas hospitals often use 12-hour shifts with rotating schedules. Under FLSA’s “8 and 80” system, healthcare employers can opt to pay overtime after 8 hours in a day or 80 hours in a two-week period — but only if they formally elect that system. Without the election, the standard 40-hour weekly rule applies.
Hospitality and construction round out the list. Restaurant cooks, hotel housekeepers, and residential framers frequently work off-the-clock or get paid in cash under the table, which strips them of overtime protection entirely. Both practices are federal FLSA violations.
Why Texas Employers Must Still Comply
Some Texas employers assume that because the state has no overtime statute, they have flexibility. They do not. Federal FLSA applies in every state, including Texas, and preempts any state law that would weaken worker protections. The 40-hour/1.5× standard is the floor, not a ceiling.
Misclassifying workers as independent contractors to dodge overtime is a common workaround that fails DOL scrutiny. A worker whose schedule, tools, and methods are controlled by the employer is an employee under FLSA’s economic reality test. Back wages in Texas overtime cases can run into hundreds of thousands of dollars per employer, plus liquidated damages equal to 100% of the owed amount.
What Texas overtime laws actually require
Texas overtime laws follow the federal FLSA exactly: 1.5× the regular rate for hours worked over 40 in a single workweek, with no daily overtime threshold and no state-mandated double time. The Texas Workforce Commission accepts wage claims for unpaid overtime, but the underlying standard is set by federal law and enforced in parallel by the U.S. DOL Wage and Hour Division. Workers who miss the 180-day TWC filing window can still pursue federal FLSA remedies for up to two years.
How Texas Compares to Other States
Texas sits at the federal floor. California adds daily thresholds and double time. New York adds hospitality daily rules and spread-of-hours pay. Texas workers get the federal baseline only, but that baseline is non-negotiable. For multi-state employers, a single payroll system using the Overtime Pay Calculator can apply the right state rule to each worker’s location automatically.
