Texas is often described as an employer-friendly state for wage and hour rules, and in many ways it is: the state follows the federal minimum wage, has no daily overtime rule and does not require meal or rest breaks for adults. But Texas does have its own rules on how often and how quickly employees must be paid, and federal law still applies to every hour worked. This guide covers the time and pay rules Texas employers deal with most often, and how to keep accurate records that hold up if a wage claim is filed.
This article is general information, not legal advice. Laws change, so confirm current requirements with the Texas Workforce Commission (TWC) or the U.S. Department of Labor.
Texas minimum wage
The Texas Minimum Wage Act adopts the federal minimum wage, so the minimum for most non-exempt employees in Texas is the same as under the federal Fair Labor Standards Act (FLSA): $7.25 per hour. Cities and counties in Texas cannot set a higher general minimum wage for private employers. Tipped employees can be paid a lower cash wage if tips bring them up to the full minimum, following the federal tip credit rules.
Overtime in Texas
Texas does not have its own overtime law, so overtime follows the FLSA. Non-exempt employees must be paid at least one and a half times their regular rate of pay for every hour worked over 40 in a workweek.
- No daily overtime. A 12-hour shift does not trigger overtime by itself in Texas, as long as the weekly total stays at or below 40 hours.
- Each workweek stands alone. Hours cannot be averaged across two weeks.
- Bonuses count. Non-discretionary bonuses and shift differentials are generally part of the regular rate, which raises the overtime rate.
To check the math for a specific week, use our free overtime calculator, and see our guide to FLSA overtime rules for the details.
Meal and rest breaks
Texas law does not require employers to give adult employees meal periods or rest breaks. Federal law does not require them either. If you do offer breaks, federal rules decide whether they are paid:
- Short breaks, usually 5 to 20 minutes, are generally counted as work time and must be paid.
- Bona fide meal periods, typically 30 minutes or more, can be unpaid only if the employee is completely relieved from duty.
- Nursing employees are entitled to reasonable break time and a private space to express breast milk under the federal PUMP for Nursing Mothers Act.
The practical risk for Texas employers is automatic meal deductions. If a system subtracts 30 minutes every day but the employee works through lunch, that time is unpaid work. Recording actual breaks avoids the problem.
Texas Payday Law: how often you must pay
The Texas Payday Law sets the timing of wage payments:
- Non-exempt employees must be paid at least twice a month on regularly scheduled paydays.
- Exempt employees must be paid at least once a month.
- Paydays must be posted in a conspicuous place at the workplace.
Weekly and biweekly schedules both satisfy the twice-a-month rule for hourly staff.
Final paychecks in Texas
| Situation | When final pay is due |
|---|---|
| Employee is laid off, discharged or fired | Within 6 calendar days of the last day |
| Employee quits or resigns | By the next regularly scheduled payday |
Whether accrued vacation or PTO must be paid out depends on your written policy or agreement, so make sure your policy is clear before it is needed.
Paid sick leave and PTO
Texas has no statewide law requiring private employers to provide paid sick leave or paid vacation. Local paid sick leave ordinances in Austin, Dallas and San Antonio were blocked in court, and state law now limits cities from adding these requirements. Many employers still offer PTO to attract and keep staff. If you do, a clear accrual policy matters; our PTO accrual calculator shows how much time employees earn per pay period.
Recordkeeping requirements
Because Texas follows the FLSA, federal recordkeeping rules apply. For each non-exempt employee, employers must keep accurate records that include:
- Hours worked each workday and total hours each workweek
- The regular rate of pay and the basis of pay
- Straight-time and overtime earnings for the workweek
- Deductions, total wages paid and the pay date for each pay period
Payroll records must be kept for at least three years, and time cards and other records used to calculate wages for at least two years. If an employee files a wage claim with the TWC, these records are the employer’s main evidence. Accurate time and attendance software that records punches as they happen, with an audit trail for every correction, makes that evidence far stronger than reconstructed timesheets.
Wage claims and the TWC
Employees in Texas can file a wage claim with the Texas Workforce Commission, generally within 180 days of the date the wages were due. The TWC can order payment of wages owed, and employers who act in bad faith can face administrative penalties. Clear pay policies, accurate time records and prompt correction of missed punches are the best ways to prevent disputes.
Child labor
Texas child labor rules limit the hours and types of work for employees under 18, with stricter limits for 14- and 15-year-olds, especially on school days. Federal child labor rules also apply. If you schedule minors, set up schedule rules that prevent shifts outside the allowed hours.
A practical checklist for Texas employers
- Pay at least $7.25 per hour and track overtime over 40 hours per workweek.
- Pay non-exempt staff at least twice a month on posted paydays.
- Record actual breaks instead of using automatic deductions.
- Pay final wages within 6 calendar days after a discharge, or by the next payday after a resignation.
- Put PTO and payout rules in writing.
- Keep time records for at least two years and payroll records for at least three.
EZTime helps Texas employers record hours from the mobile app, a shared kiosk, SMS or NFC tags, flag missed punches and approaching overtime, and export payroll-ready timesheets. Plans start at $2 per employee per month, with a 14-day free trial. See pricing.
Frequently asked questions
Does Texas require overtime after 8 hours in a day?
No. Texas follows the federal rule, so overtime is owed for hours over 40 in a workweek, not for long days.
Are lunch breaks required in Texas?
No. Texas does not require meal or rest breaks for adult employees. If you provide short breaks, they are generally paid under federal law.
How soon must a final paycheck be paid in Texas?
Within 6 calendar days if the employee is discharged, and by the next regular payday if the employee quits.
How often must Texas employers pay hourly employees?
At least twice a month on regularly scheduled paydays. Exempt employees can be paid monthly.
Is paid sick leave required in Texas?
There is no statewide paid sick leave requirement for private employers in Texas.