How overtime works for hourly employees in Texas, plus a free calculator to estimate your own pay.
Source: 29 U.S.C. § 207 (federal FLSA)
Take a non-exempt hourly employee in Texas earning $20.00/hour who works 45 hours in one workweek (nine hours a day, Monday through Friday). Applying Texas's rules above:
Use the full calculator to plug in your own rate, hours, and pay period — including estimated federal and Texas tax withholding.
Common mistake: Because Texas has no state minimum wage, no state overtime law, and no daily-overtime rule of its own, employers sometimes assume Texas has looser overtime requirements generally -- it doesn't. The federal FLSA's 40-hour weekly standard applies in full; Texas simply hasn't layered anything extra on top of it, in either direction.
Same hourly rate ($20.00/hour), 35 hours in week 1 and 45 hours in week 2 — 80 hours total either way:
Week 2 still owes 5 overtime hours even though the two-week total is a plain 80 hours — overtime in Texas is calculated per workweek, not by averaging the pay period. See the biweekly overtime calculator for more examples.
Two common 12-hour-shift schedules, same $20.00/hour rate:
Want to compare your own rate, days, and shift differential? Use the schedule comparison tool.
Does Texas have its own overtime law?
No. Texas has no state overtime statute for private employers -- the federal FLSA applies directly: 1.5x your regular rate after 40 hours in a workweek, with no daily-overtime rule.
Why is the Texas minimum wage still $7.25?
Texas ties its minimum wage to the federal rate rather than setting its own, and Congress hasn't raised the federal minimum wage since 2009. Some Texas cities and employers pay more voluntarily, but there's no state-law floor above $7.25/hour.
Can a Texas employer pay tipped workers less than $7.25/hour?
Yes, down to $2.13/hour in direct cash wages under the federal tip credit, as long as tips bring total pay to at least $7.25/hour for every hour worked. If a slow shift's tips don't cover the gap, the employer must make up the difference.
No -- overtime pay isn't taxed at a different rate than your regular wages. It's simply added to your gross pay for that period and withheld the same way as any other pay. Texas has no state income tax on wages, so overtime pay is only reduced by federal income tax and FICA (Social Security and Medicare) withholding.
This is an estimate for general informational purposes only, not legal, tax, or payroll advice. For your specific situation, consult your employer's payroll department, a licensed tax professional, or Texas's labor department.
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