Frequently Asked Questions (FAQs):
1. What are the rules for overtime pay in Texas?
In Texas, the overtime pay rules are governed by the federal Fair Labor Standards Act (FLSA). Under the FLSA, non-exempt employees must receive overtime pay for all hours worked over 40 in a workweek. The overtime rate is at least 1.5 times the employee’s regular rate of pay. Texas does not have its own state-specific overtime laws, so the federal rules apply universally across the state.
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2. What are the OT rules for 2024?
Starting July 1, 2024, the Department of Labor (DOL) has updated the salary threshold for the white-collar exemptions under the FLSA. The salary threshold increased from $684 per week ($35,568 annually) to $844 per week ($43,888 annually). This means that employees earning below this threshold must be paid overtime for any hours worked over 40 in a workweek, regardless of their job duties. Another increase is planned for January 1, 2025, raising the threshold to $1,128 per week ($58,656 annually).
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3. What jobs are exempt from overtime in Texas?
Certain jobs are exempt from overtime pay requirements under the FLSA. These typically include:
- Executive, Administrative, and Professional Employees: Employees in these categories must meet specific duties tests and be paid on a salary basis meeting the minimum salary threshold.
- Outside Sales Employees: Employees primarily engaged in making sales or obtaining orders outside the employer’s place of business.
- Certain Computer Professionals: Employees in computer-related occupations who meet specific criteria regarding job duties and compensation.
- Highly Compensated Employees: Employees earning $107,432 or more annually (increasing to $132,964 in 2024), who perform at least one of the duties of an exempt executive, administrative, or professional employee.
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4. What is the DOL rule for 2024?
The DOL rule for 2024 involves updating the salary thresholds for exempt employees under the FLSA. Effective July 1, 2024, the salary threshold for white-collar exemptions has increased from $35,568 annually to $43,888 annually. This update also includes future planned increases, with the next adjustment set for January 1, 2025, raising the threshold to $58,656 annually. Additionally, the threshold for highly compensated employees will also increase in 2024.
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