Texas Overtime Pay Calculator (2026)

Texas defers to the federal Fair Labor Standards Act. The rules: nonexempt employees get 1.5× their regular rate for hours over 40 in any workweek (a fixed 7-day period). Hours don't average across weeks — a 30/50 split over two weeks still owes 10 hours of overtime, even though total is 80.

There's no state-mandated daily overtime in Texas (California requires it after 8 hours/day; Texas does not). There's no state-mandated double-time. There's no mandatory shift differential. Anything above federal minimum is between employer and employee.

Drop in your hourly rate and total hours for the week. The estimator separates regular and overtime pay, then shows gross and an approximate take-home (using a rough 15% federal withholding plus FICA — Texas has no state income tax).

Carlos works at a Houston distribution center. His base rate is $22/hr. Last week he worked 54 hours. The math:

Regular pay: 40 × $22 = $880

Overtime pay: 14 × $22 × 1.5 = $462

Gross weekly: $1,342

Compared to a flat 54 hours at $22 (which would be illegal for a nonexempt employee), Carlos earned $154 more from the overtime premium. Over a year of consistent 54-hour weeks, that's $8,000+ in overtime premium alone.

Two tests must both pass for an employee to be exempt from overtime:

• Salary basis test: Paid a predetermined salary that doesn’t reduce based on quality or quantity of work.
• Salary level test: At least $684/week ($35,568/year) as of 2025. Scheduled increases continue.
• Duties test: The employee primarily performs executive, administrative, professional, computer, or outside sales work.

Miss any of the three and the employee is nonexempt — overtime-eligible, regardless of title. A common Texas mistake: paying a $40k 'office manager' a salary, assuming exempt status, then realizing they spend most of their week on routine clerical work. The duties test fails. The employer owes back overtime.

For straight hourly employees, the "regular rate" used to calculate overtime is simply the hourly rate. For employees with bonuses, commissions, shift differentials, or non-discretionary incentive pay, the regular rate calculation gets more complicated — and gets employers in trouble more often than any other FLSA issue.

The regular rate formula: total non-overtime compensation in the workweek ÷ total hours worked = regular rate. Then 1.5× regular rate × overtime hours = overtime pay.

Worked example with a non-discretionary bonus:

• Employee: hourly rate $20, works 48 hours in a workweek, earns a $200 non-discretionary production bonus that week.
• Total compensation: $20 × 48 hours = $960 base, plus $200 bonus = $1,160.
• Regular rate: $1,160 ÷ 48 hours = $24.17/hour (not $20!)
• Overtime: 8 hours × $24.17 × 0.5 (the "half" premium beyond the regular rate already paid) = $96.67 in additional overtime pay owed beyond what straight time at $20 would suggest.
• Total owed: $20 × 48 = $960 + $200 bonus + $96.67 OT premium = $1,256.67

Employers who simply pay $20 × 40 + $30 × 8 = $1,040 plus the $200 bonus = $1,240 are underpaying by $16.67 in this single week. Over a year of 4 production weeks per quarter, that's ~$270 in unpaid overtime per affected employee — and that's before doubling for FLSA "willful violation" penalties.

What counts toward the regular rate: non-discretionary bonuses (announced or expected, like attendance bonuses or sales incentives), shift differentials, commissions earned, on-call pay, and lump-sum production bonuses. What does NOT count: discretionary bonuses (truly surprise), gifts (holidays, birthdays), reimbursements (mileage, expenses), benefits (health, retirement), and certain payroll deductions.

To be exempt from overtime under FLSA, an employee must meet both the salary test (paid at least $684/week as of 2025, projected increases) AND the duties test for one of five categories: executive, administrative, professional, computer professional, or outside sales.

Executive exemption requires:

• Primary duty is managing the enterprise or a recognized department
• Regularly directs the work of at least 2 full-time equivalents
• Has authority to hire/fire (or input is given particular weight)

Common Texas executive-exemption disputes: shift supervisors at restaurants and retail who spend most of their time doing the same work as their reports. A "manager" who runs a cash register 70% of the time fails the primary-duty test.

Administrative exemption requires:

• Primary duty is non-manual work directly related to management or general business operations
• Exercises discretion and independent judgment on significant matters

The administrative exemption is the most litigated. "Office workers" who follow procedures don't qualify, regardless of title. A bookkeeper who codes invoices is non-exempt. A controller who designs accounting systems and chooses banking relationships is exempt.

Professional exemption requires:

• Learned professional: advanced knowledge in a field of science or learning, customarily acquired by prolonged specialized instruction (lawyers, doctors, engineers, registered nurses, accountants with specific credentials)
• Creative professional: invention, imagination, originality, or talent in a recognized field of artistic or creative endeavor (writers, designers, musicians)

Computer professional exemption requires:

• Primary duty: systems analysis, programming, software engineering, or related work
• Paid at least $684/week salary OR at least $27.63/hour

Common misclassification in Texas: small-business owners treating "IT help desk" or "junior developer" roles as exempt computer professionals when the actual work is more routine support than systems-level engineering. The hourly threshold matters — paying a junior dev $20/hour and treating them as exempt fails the test on its face.

Texas employees with unpaid wages or overtime have multiple paths to recover. The Texas Workforce Commission (TWC) operates a state wage claim process; federal Wage and Hour Division (WHD) handles FLSA claims; private FLSA litigation is also available.

TWC wage claim process:

• File a wage claim online at twc.texas.gov within 180 days of the unpaid wage
• TWC notifies the employer and gives them 14 days to respond
• TWC investigates and issues a preliminary order — usually within 60-90 days
• Either party can appeal to a TWC hearing officer; further appeals go to district court
• TWC can order payment, penalties (up to 15% of the wage), and attorney fees

Federal FLSA process (Wage and Hour Division):

• File with WHD at the local district office (Houston, Dallas, Austin, San Antonio)
• WHD investigates and can recover unpaid wages plus liquidated damages (essentially doubling the back pay)
• No filing deadline within 2-3 years (FLSA statute of limitations)

Private FLSA lawsuit:

• Sue in federal court for unpaid wages, liquidated damages, attorney fees
• Class actions are common for systematic misclassification or off-the-clock work
• Two-year statute of limitations, three years for willful violations
• Texas employees typically win FLSA suits when properly documented; class actions can resolve for millions

Common Texas employer mistake: assuming Texas's "right to work" status limits employee remedies. It doesn't. FLSA is federal and applies in Texas exactly as it does in California or New York. The remedies (back pay, liquidated damages, attorney fees) are substantial.

Certain Texas industries see disproportionate FLSA enforcement and class-action activity. Common patterns:

• Construction & oilfield services: Treating workers as independent contractors when they fail the IRS/DOL economic-realities test. Day-rate workers (oilfield "company men") are often misclassified as exempt. Texas Comptroller and DOL both target these cases.
• Restaurant & hospitality: Tip pooling violations, off-the-clock prep work, and "manager" classifications that fail the executive duties test. The Texas restaurant industry has seen multiple multi-million-dollar class actions.
• Trucking & logistics: The Motor Carrier Act exemption (which removes overtime obligations for certain truck drivers) is narrower than employers think. Drivers operating exclusively intrastate or in non-covered cargo categories are entitled to overtime.
• Healthcare: Nurses and medical technicians sometimes misclassified as exempt professionals when their specific role doesn't meet the duties test. Off-the-clock charting and shift handoff time is a common claim.
• Technology: Junior developers and support roles misclassified as exempt computer professionals when they fail the hourly threshold or duties test.
• Retail & sales: "Assistant managers" who spend most of their time doing the same work as hourly staff, and outside sales reps whose primary work is actually inside (calling leads, paperwork).

If you're an employer in any of these industries, an annual FLSA audit by employment counsel is a relatively cheap insurance policy. Most misclassification cases settle for back wages plus liquidated damages plus attorney fees — typically $40,000-$100,000+ per misclassified employee for a 2-year period.

Texas overtime law is purely federal (FLSA). California adds a layer of state law that is far more employee-protective. The big differences for anyone moving between states:

• Daily overtime: California requires 1.5× after 8 hours/day; Texas does not. A 10-hour California workday triggers 2 hours of overtime even if total weekly hours are under 40.
• Double time: California requires 2× after 12 hours/day or for the 7th consecutive workday; Texas has no double time requirement.
• Meal and rest breaks: California mandates paid 10-minute breaks every 4 hours and unpaid 30-minute meals after 5 hours; Texas has no break requirements.
• Workweek averaging: Neither state allows averaging across multiple weeks; both calculate per workweek.
• Salary thresholds: California's exempt salary minimum is $66,560/year (2024); Texas follows federal at $35,568. A salary in the $36k-$66k range can be exempt in Texas but non-exempt in California.

For employers operating in both states, this means either maintaining separate Texas and California pay practices, or applying California rules universally (often easier administratively but more expensive). For Texas employees relocating to California, expect overtime opportunities you didn't have before. For California employees relocating to Texas, expect to give up the daily overtime, the meal/rest pay, and double time — Texas is simpler but less protective.