Wage and Hour Disputes

Wage and Hour Violations in Texas

Texas employees are protected by federal wage and hour laws, including the Fair Labor Standards Act (FLSA). Employers must pay minimum wage, overtime, and follow proper pay practices. While Texas is known for its business-friendly environment, this doesn't mean employers can take advantage of workers by violating wage and hour laws. Understanding your rights as an employee is crucial to ensuring you receive fair compensation for your work.

Wage and hour violations are unfortunately common across Texas industries, from restaurants and retail to construction and healthcare. These violations can cost workers thousands of dollars in unpaid wages and overtime compensation. If you suspect your employer is not paying you properly, it's important to understand what constitutes a violation and what steps you can take to protect your rights.

Common Wage and Hour Violations

Unpaid overtime represents one of the most frequent wage violations in Texas workplaces. Under federal law, non-exempt employees must receive time-and-a-half pay for any hours worked beyond 40 in a single workweek. Many employers try to avoid paying overtime by misclassifying employees as exempt when they don't actually meet the strict requirements for exemption, or by manipulating time records to show fewer than 40 hours worked.

Minimum wage violations occur when employers pay workers less than the federally mandated $7.25 per hour. While this might seem straightforward, violations can be subtle, such as when employers make illegal deductions from paychecks that bring the effective hourly rate below minimum wage. Tipped employees face particular challenges, as employers sometimes fail to make up the difference when tips don't bring wages up to the minimum wage standard.

Off-the-clock work has become increasingly common, especially in retail and restaurant settings. Employers may require workers to arrive early to set up, stay late to clean, or work through lunch breaks without compensation. Some employers pressure employees to clock out and continue working, or to perform work-related tasks at home without pay. All time spent performing work-related activities must be compensated according to federal law.

Employee misclassification is a growing problem that affects both wage and hour protections and tax obligations. Employers sometimes incorrectly classify workers as independent contractors to avoid paying overtime, benefits, and employment taxes. Similarly, some employers misclassify employees as exempt from overtime when they don't meet the salary and duties tests required for exemption.

Texas Wage and Hour Laws

Texas follows the federal minimum wage of $7.25 per hour, as the state has not established its own minimum wage law. This means that most Texas workers are entitled to at least the federal minimum wage for all hours worked. However, certain exceptions exist for tipped employees, who may be paid as little as $2.13 per hour if their tips bring their total compensation up to the minimum wage level.

Overtime requirements in Texas are governed by federal law, which mandates that non-exempt employees receive one and a half times their regular hourly rate for hours worked over 40 in a workweek. The overtime calculation is based on the workweek, not the pay period, and employers cannot average hours across multiple weeks to avoid paying overtime. Texas law also requires that employers establish regular paydays and pay employees at least twice per month, though more frequent payment is allowed.

When employment ends, Texas law requires employers to pay final wages by the next regularly scheduled payday. If the employee is fired or laid off, the final paycheck must include all earned wages, including any accrued vacation time if the employer's policy provides for vacation pay upon termination. Employers cannot withhold final pay as punishment or to recover debts, except in very limited circumstances and with proper authorization.

What Should You Do?

If you suspect wage and hour violations, start by maintaining detailed personal records of your work hours and wages received. Keep track of when you start and stop work each day, including any work performed before clocking in or after clocking out. Save all pay stubs, time sheets, and any communications about your work schedule or pay. These records will be crucial if you need to prove violations later.

Calculate what you believe you're owed by reviewing your hours and pay rate. For overtime calculations, remember that overtime is based on your regular rate of pay, which may include commissions, bonuses, and other compensation beyond your base hourly wage. If you're unsure about the calculations, consider consulting with an employment attorney who can help determine the full amount you may be owed.

Before taking legal action, consider approaching your employer about correcting the wage violations. Sometimes employers are genuinely unaware of the violations and will correct them once brought to their attention. However, be prepared for the possibility that your employer may become defensive or even retaliatory. Document your request for proper payment and your employer's response.

If your employer refuses to correct wage violations or retaliates against you for raising concerns, you have several options. You can file a complaint with the U.S. Department of Labor's Wage and Hour Division, which will investigate your claim at no cost to you. Alternatively, you can file a private lawsuit in federal or state court, which may allow you to recover additional damages beyond what the Department of Labor can obtain.

Recovery Options

Successful wage and hour claims can result in significant financial recovery for affected employees. The primary remedy is back pay, which includes all unpaid wages and overtime compensation you should have received. This calculation can go back up to three years for willful violations, potentially resulting in substantial awards for workers who have been underpaid over extended periods.

Liquidated damages, which effectively double the amount of unpaid wages, are available in many cases where employers willfully violated wage and hour laws. These damages serve as both compensation for the delay in payment and as a deterrent to employers who might otherwise view wage violations as a cost of doing business.

Attorney's fees and court costs are often recoverable in successful wage and hour cases, meaning you may not have to pay out of pocket for legal representation. This fee-shifting provision makes it possible for workers to pursue claims even when the amounts owed might not otherwise justify the cost of litigation.

Interest on unpaid wages may also be available, particularly in cases where significant time has passed between when wages were earned and when they are ultimately paid. Some cases may also result in injunctive relief, requiring employers to change their practices to comply with wage and hour laws going forward.

Protect Your Pay Rights

If your Texas employer isn't paying you properly, AskLitigation can help you recover what you're owed.

Frequently Asked Questions

How long do I have to file a wage claim in Texas?

Under federal law, you generally have 2-3 years to file a wage claim, depending on whether the violation was willful.

Can my employer make me work off the clock in Texas?

No, employers cannot require or allow employees to work without compensation. All work time must be properly recorded and paid.

Am I entitled to overtime pay in Texas?

Most employees are entitled to overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek, unless they qualify for an exemption.