Texas Overtime Laws: Pay Rules, Final Paycheck and PTO in 2026

Last verified October 31, 2026 against current Texas and federal law

Texas overtime laws are federal laws in practice. The Fair Labor Standards Act (FLSA) sets the 40-hour workweek and the time-and-a-half rate, and the Texas Payday Law sets when and how you must be paid. Most of the questions workers search for, such as whether mandatory overtime is allowed, when a last paycheck is due, and whether an employer must pay out unused vacation, come down to one rule: Texas leaves a lot to the employer, but the pay that is owed has to be paid on time. This guide covers overtime, final pay, paid time off, sick time, garnishment, payday loans, pay transparency and unpaid training, and what changed in 2026.

Overtime rate	1.5 times the regular rate for hours over 40 in a workweek (FLSA)
Texas state overtime law	None. No daily overtime and no double time
Mandatory overtime	Legal, if non-exempt employees are paid overtime for it
Federal salary floor for exemption	$684 per week ($35,568 per year), plus a duties test
Final paycheck	Fired: within 6 calendar days. Quit: by the next regular payday (Labor Code § 61.014)
Paid time off	Not required. Payout only if a written agreement or policy promises it
Where to complain	Overtime: U.S. Department of Labor. Other unpaid wages: Texas Workforce Commission within 180 days

How do Texas overtime laws work?

Texas overtime rules come from the FLSA, because the Texas Minimum Wage Act defers to the federal law for covered workers. If you are non-exempt, your employer must pay at least one and one-half times your regular rate for every hour worked over 40 in a single workweek. A workweek is a fixed period of 168 hours, seven days in a row, and each week stands alone. Averaging two weeks to avoid overtime is not allowed.

Two points surprise many Texas workers. First, there is no daily overtime: a 12-hour day does not trigger overtime unless the total for the week passes 40. Second, there is no state law for double time or for overtime on weekends or holidays. A seventh straight day is paid at the normal rate unless it pushes your total past 40 hours or your employer promises more.

The regular rate is more than your hourly wage. Shift differentials and many non-discretionary bonuses count toward it, so overtime is calculated on the higher figure. Public employers also have a special option: they may offer compensatory time off instead of cash, capped at 240 hours for most employees and 480 hours for public safety workers under 29 U.S.C. § 207(o). Private employers cannot do that.

Is mandatory overtime legal in Texas?

Yes. No Texas or federal law limits how many hours an adult employee can be required to work, so an employer can make overtime mandatory and can discipline or fire an at-will employee who refuses, unless a contract or union agreement says otherwise. The one firm condition is pay: every overtime hour of a non-exempt employee must be paid at the overtime rate, whether it was requested, scheduled or merely allowed.

Workers under 16 have separate hour limits, and commercial truck drivers face federal hours-of-service limits. Our guide to Texas labor laws covers those limits, at-will employment and breaks.

Who is exempt from overtime in Texas?

Exempt employees are not entitled to overtime. To be exempt under the white-collar rules, a worker generally must be paid a salary of at least $684 a week and perform executive, administrative or professional duties (or qualify under another exemption such as outside sales or certain computer jobs). Both parts must be met. A job title or a salary alone does not make someone exempt.

The salary number has been in flux. The Department of Labor tried to raise the floor to $844 a week in July 2024 and $1,128 a week in January 2025, but a federal court vacated that rule on November 15, 2024. On May 14, 2026, the Department announced a technical amendment that officially rescinds the 2024 rule, so employers continue to use the 2019 threshold of $684 a week.

Other jobs are exempt by type. Examples include many agricultural workers, taxi drivers, and some transportation workers covered by other federal rules. Texas adds no extra exemptions of its own for private employers, so the federal list controls.

Is it illegal to not pay overtime in Texas?

Yes. Failing to pay required overtime violates the FLSA, even though Texas has no matching state overtime statute. A worker can file a complaint with the U.S. Department of Labor Wage and Hour Division or sue in court. An employer that owes overtime generally owes the unpaid amount plus an equal amount in liquidated damages, along with attorney fees, under 29 U.S.C. § 216(b). The filing window is two years from the violation, or three years if the violation was willful (29 U.S.C. § 255).

Common ways overtime goes unpaid are working off the clock before or after a shift, being paid straight time for hours over 40, auto-deducted lunch breaks that were not really taken, and being classified as exempt without meeting the duties test. Keep your own record of the hours you worked. If an employer has no time records, a worker’s reasonable estimate can carry weight.

The Texas Workforce Commission handles wages that were promised but not paid under the Payday Law, but overtime claims under the FLSA are enforced by the federal Department of Labor. If you are not sure which fits, start by asking in writing and then contact the Department of Labor.

When is the final paycheck due in Texas?

It depends on how the job ended. Under Labor Code § 61.014, an employee who is fired, laid off or discharged must be paid within six calendar days. An employee who quits must be paid by the next regularly scheduled payday. The six days include weekends, so a Monday firing means a Sunday deadline.

Situation	Final pay due	Source
Fired, laid off or discharged	Within 6 calendar days	Labor Code § 61.014
Quit or resigned	Next regular payday	Labor Code § 61.014
Employer says you must return a laptop or uniform first	Still due on time. A deduction for unreturned property is allowed only with your written authorization and cannot cut pay below minimum wage	Labor Code § 61.018 and Texas Workforce Commission guidance
Commission or bonus	Depends on the written agreement or policy	Labor Code ch. 61

An employer cannot hold your last check hostage for unreturned property or an unsigned timesheet. If the property is not returned, the employer’s options are a deduction you authorized in writing (Labor Code § 61.018), which cannot take you below minimum wage, a signed property return deposit agreement or a separate claim, not skipping the pay.

Texas final paycheck law penalty

A late final check can be reported to the Texas Workforce Commission within 180 days after the wages were due, under Labor Code § 61.051. After an investigation, the Commission can order payment, and if it finds the employer acted in bad faith it can add an administrative penalty of up to the lesser of the wages at issue or $1,000 (§ 61.053). In serious cases, an employer who intends to avoid paying wages owed and fails to pay after a demand commits a third-degree felony under § 61.019. Our Texas labor laws guide shows the full wage claim steps.

Does Texas law require PTO, vacation or sick pay?

No. The Texas Workforce Commission states that no Texas or federal law requires private employers to pay out accrued, unused vacation or paid time off when you leave, and no law requires private employers to provide paid or unpaid sick leave of any kind under the Payday Law. What an employer promises in writing is what counts.

Under Labor Code § 61.001(7)(B), vacation pay, holiday pay, sick leave pay, parental leave pay and severance pay count as wages only if they are owed under a written agreement or written policy. If the written policy says unused PTO is paid at separation, the employer must pay it on the final pay deadline. If the policy is silent, the Commission says the claim is not enforceable under the Payday Law. Policies that say PTO is forfeited when you quit, or that you must give notice to receive it, are generally enforceable if they are in writing.

How many sick days are required by law in Texas?

None for private employers. Texas has no paid sick leave law, and Texas cities cannot create one: courts blocked ordinances in Austin, San Antonio and Dallas, and a 2023 state law limits local rules on private employment. Federal law adds one limited right. The Family and Medical Leave Act gives eligible employees up to 12 weeks of unpaid, job-protected leave a year for serious health conditions and family needs, but only at private employers with 50 or more employees within 75 miles (and at public agencies of any size), and only after 12 months and 1,250 hours of work.

Many Texas employers offer paid leave voluntarily, and some public employers must provide it by statute. Always read your handbook: it is the legal source of your PTO rights.

Is wage garnishment legal in Texas?

Only for a short list of debts. Article XVI, Section 28 of the Texas Constitution bars garnishing current wages to pay ordinary private debts such as credit cards, medical bills, payday loans and personal loans. A creditor who wins a judgment usually cannot take your paycheck for those debts.

The exceptions are child support and spousal support, federal student loans, and unpaid federal taxes and certain other federal debts. Federal limits then apply under 15 U.S.C. § 1673:

• Child support can take up to 50% of disposable pay if you support another spouse or child, and up to 60% if you do not, plus 5% more if you are more than 12 weeks behind.
• Federal student loan wage garnishment is limited to 15% of disposable pay.
• A federal tax levy leaves you an exempt amount based on filing status and dependents.

Federal law also bars an employer from firing you because of a single garnishment (15 U.S.C. § 1674). For how support orders are set, see our guide to Texas child support laws.

Are online payday loans legal in Texas?

Payday and car title loans are legal in Texas, but they run through a regulated structure. A credit access business (CAB) arranges the loan from an outside lender for a fee, and the CAB is the party that holds the state license. The Office of Consumer Credit Commissioner licenses and examines CABs under Finance Code ch. 393 and Title 7, Chapter 83 of the Texas Administrative Code.

If you use any lender, check that the business is licensed with the Office of Consumer Credit Commissioner before you share your bank details, read the fee in dollars, and keep copies of what you sign. Many Texas cities, including Dallas, Houston, Austin and San Antonio, also adopted local rules on payday and title loan businesses. A payday loan balance cannot be collected by garnishing your wages unless it becomes one of the exceptions above, such as a court-ordered support debt.

Is it illegal to discuss wages in Texas?

No. Most private-sector employees who are not supervisors have a federal right to discuss pay with coworkers under Section 7 of the National Labor Relations Act. An employer that fires or disciplines a non-supervisory employee for talking about pay in a group can face a charge before the National Labor Relations Board. Supervisors and managers are not protected by that law in the same way, and an employer may restrict people whose job is to handle payroll data from sharing it.

Is there a Texas pay transparency law?

No. Texas does not require employers to post salary ranges in job ads or disclose pay on request, unlike states such as Colorado or New York. Employers may still choose to do it. Equal pay between men and women for equal work is covered by federal law and by the Texas Commission on Human Rights Act in Labor Code ch. 21.

Is unpaid training legal in Texas?

Usually not for employees. Under the FLSA, time spent in training that an employer requires, that is job related, or that happens during the normal workday is work time and must be paid at no less than $7.25 an hour, plus overtime when the week passes 40 hours. Genuine unpaid internships and training programs are allowed only when the person is the primary beneficiary and is not displacing a paid worker. Unpaid “trial shifts” at a business that is making use of the work are a common violation.

Texas sets the minimum wage at the federal level in Labor Code § 62.051, so the rate is $7.25 an hour in 2026. Tipped employees can be paid a lower cash wage if tips bring them to at least $7.25 an hour.

Real situations: how Texas overtime law plays out

Your manager works 50 hours on a $40,000 salary

A salary above $684 a week meets the pay test, but duties decide the rest. If the person mostly does production work, takes orders from others and has little authority over other employees, the exemption may fail and 10 hours of overtime a week may be owed. Job titles do not decide this.

You are asked to clock out and keep working

That is off-the-clock work and it is unlawful for a non-exempt employee. Time spent working counts even if the manager asked you to clock out, and you can claim it through the Department of Labor.

You are fired on a Wednesday and the paycheck is not in your account Tuesday

Six calendar days from Wednesday is the following Tuesday. If the money is not paid by then, ask for it in writing and file a wage claim with the Texas Workforce Commission within 180 days of the deadline.

Timeline: recent changes to overtime rules

Date	Event
July 1, 2024	Federal rule raising the salary floor to $844 a week took effect
November 15, 2024	A federal court vacated the 2024 rule nationwide, restoring $684 a week
September 1, 2025	Texas 2025 laws took effect, including limits on health care non-competes. None changed overtime pay
May 14, 2026	Department of Labor announced a technical amendment officially rescinding the 2024 rule
Today	$684 a week remains the federal exemption floor and Texas has no separate state overtime law

Myths vs. facts about Texas overtime and pay

Myth	Fact
“Texas has its own overtime law.”	Overtime comes from the federal FLSA. Texas has no overtime statute of its own.
“Overtime starts after 8 hours a day.”	Texas has no daily overtime. Only hours over 40 in the workweek count.
“My salary means no overtime.”	Salary alone does not make you exempt. Duties and the $684 weekly floor both matter.
“They must pay out my unused PTO.”	Only if a written agreement or policy says so.
“Texas can garnish my wages for a credit card.”	Not for ordinary private debts. Support, federal student loans and federal taxes are the main exceptions.
“My employer can hold my last check until I return equipment.”	Final pay is still due on time. A deduction for unreturned property needs your written authorization.

Overtime rules compared with neighboring states

State	State overtime law	2026 minimum wage
Texas	None, follows the FLSA	$7.25
Oklahoma	None, follows the FLSA	$7.25
Louisiana	None, follows the FLSA	$7.25 (federal rate)
New Mexico	Yes, overtime after 40 hours under state law	$12.00
Arkansas	Yes, overtime after 40 hours under state law	$11.00

Frequently asked questions

What are Texas overtime laws?

Texas follows the federal FLSA. Non-exempt employees must be paid one and one-half times their regular rate for hours over 40 in a workweek. Texas has no daily overtime and no state overtime statute. Exempt workers must meet both the salary level of $684 a week and a duties test.

Is mandatory overtime legal in Texas?

Yes. No Texas or federal law limits overtime for adult employees. An at-will employee can be disciplined or fired for refusing, unless a contract or union agreement says otherwise. The employer must pay non-exempt employees overtime pay for every hour over 40.

When is my final paycheck due in Texas?

If you are fired, laid off or discharged, your final pay is due within six calendar days. If you quit, it is due by the next regularly scheduled payday. These deadlines are in Labor Code § 61.014. File a wage claim with the Texas Workforce Commission within 180 days if it is late.

Does Texas require employers to pay out unused vacation or PTO?

No. A Texas employer owes accrued vacation or PTO only if a written agreement or written policy promises it. If the policy says unused time is lost, or says nothing, the Texas Workforce Commission treats the claim as not enforceable under the Payday Law.

Is wage garnishment legal in Texas?

Only for limited debts. The Texas Constitution bars garnishing current wages for ordinary consumer debts such as credit cards and medical bills. Child support, spousal support, federal student loans and federal taxes are the main exceptions, subject to federal percentage limits.

Is unpaid training legal in Texas?

Usually not. Required, job-related training for an employee is paid work under the FLSA, with overtime when the week passes 40 hours. Only genuine training or internship programs where the participant is the main beneficiary can be unpaid.

Is there a pay transparency law in Texas?

No. Texas does not require employers to post pay ranges or disclose salaries. Most non-supervisory private employees can still talk about pay with coworkers under federal labor law, and an employer cannot lawfully retaliate against them for it.

If this affects you: for unpaid overtime, contact the U.S. Department of Labor Wage and Hour Division. For a late final paycheck or unpaid promised wages, file a claim with the Texas Workforce Commission Wage and Hour department within 180 days. For a firing you think was illegal or a disputed exemption, speak with a Texas-licensed employment attorney. This guide is general legal information, not advice for your situation. Browse more in our work and business guides, read how we research every guide in our editorial policy, or report an error.