As a Texas worker, you should know that the Fair Labor Standards Act (FLSA) offers many protections and safeguards for employees. In this blog, I’ll explain some key contours of the FLSA so that you can be more informed of your rights under the law.
What is the FLSA?
The Fair Labor Standards Act was enacted in 1938 to set basic standards for minimum wage, overtime pay, fair competition for employers, and employment of minors. A chief goal was to ensure that workers were fairly compensated for their time and labor. Today, the FLSA remains critical for employees across the country, and it is enforced by the U.S. Department of Labor (DOL).
Minimum Wage & Overtime
One of the core protections under the FLSA is the minimum wage. As of 2024, the federal minimum wage is $7.25 per hour. In Texas, state law does not set a minimum wage higher than the federal rate, so the federal minimum wage applies here.
Overtime is another important aspect of the FLSA. Covered non-exempt employees must be paid time-and-a-half for any hours worked over 40 in a workweek. For example, if a non-exempt employee earns $10 per hour, they must be paid $15 per hour for each hour worked over 40 hours in a given week. However, some employees are classified as “exempt” under the FLSA, which means they do not receive overtime pay, regardless of how many hours they work.
Exempt vs. Non-Exempt Employees
While non-exempt employees are entitled to overtime pay, exempt employees are not. Determining whether or not one is an exempt employee can be tricky. There are several considerations for how one’s status is determined.
Employees who fall into certain categories—briefly described below—may be classified as exempt from overtime pay. There are strict tests and criteria to determine whether an employee meets the requirements for exemption. For example, to qualify as exempt, the employee must meet the following general criteria:
- Salary: The salary must meet the federal minimum threshold, currently $684 per week (equivalent to $35,568 annually).
- Sadly, just this week, a federal district court in Texas vacated the DOL’s attempt to increase this minimum salary. The DOL had increased the threshold to $844 per week as of July 1, 2024, with plans of increasing it again to $1,128 per week as of January 1, 2025. Unfortunately, the DOL’s agenda has been struck down.
- Duties: The employee’s job duties must primarily involve executive, administrative, professional, computer, or outside sales responsibilities as defined by the FLSA.
Exempt Employment Categories
The executive exemption applies to employees whose primary role involves managing an organization or a significant department or division within it.
The administrative exemption covers employees engaged in high-level office work related to the business operations or management of the organization.
The professional exemption applies to employees whose work involves advanced knowledge and discretion in an area of science or learning.
The computer employee exemption applies to workers with a specific set of duties and skills within the computer technology field.
The outside sales exemption applies to workers who make certain kinds of sales or who obtain requests for services while working outside of the employer’s offices.
Part-Time Employees and Overtime
Another common misconception is that if an employee is classified as part-time, the employee is not entitled to overtime pay. This is not true under the FLSA.
The FLSA specifies that any employee—whether full-time or part-time—who works more than 40 hours in a workweek must receive overtime pay at time-and-a-half their regular rate of pay. The classification of “part-time” merely refers to the regularity of the employee’s schedule (typically fewer than 40 hours per week). The classification itself has no bearing on whether one is entitled to overtime.
In industries where workers face fluctuating schedules, tracking one’s hours can help ensure that the employer is complying with overtime laws. Failure to do so can result in significant penalties for employers under the FLSA.
What to Do If You Believe Your Rights Have Been Violated
If you believe your employer has failed to comply with the FLSA, there are potential avenues for recourse. An experienced employment law attorney can help you navigate your options and ensure that your rights under the FLSA are fully protected.