2026 Texas Overtime & Labor Laws Explained
Unlike states like California or New York, the state of Texas does not have its own overarching state labor laws regarding overtime or minimum wage. Instead, the Texas Payday Law completely adopts the regulations set forth by the federal Fair Labor Standards Act (FLSA). To ensure accurate pay, many workers track their standard shifts using our weekly time card calculator before applying the TX multipliers below.
The 40-Hour Rule (No Daily Overtime)
In Texas, non-exempt employees must be paid 1.5 times their regular hourly rate for any hours physically worked beyond 40 in a continuous workweek. It is critical to understand that Texas has no daily overtime law. You could work a 12-hour shift or a 14-hour shift in a single day, and your employer is only obligated to pay your straight-time rate, provided your total weekly hours do not exceed 40.
| Worker Category | Standard Hourly Rate | Overtime Rate (1.5x) |
|---|---|---|
| Standard TX Minimum Wage | $7.25 / hr | $10.88 / hr |
| Tipped Employees (Cash Wage) | $2.13 / hr | $5.76 / hr (min. cash requirement) |
| Daily Overtime Limit | None | N/A |
| Double Time Limit | None | N/A |
Oilfield Workers & Independent Contractors (1099)
A frequent issue in Texas involves the oil and gas industry. Many roughnecks and manual laborers are paid a "day rate." Under the FLSA, paying a day rate does not exempt an employer from paying overtime. If an oilfield worker performs manual labor for over 40 hours, they are legally entitled to 1.5x pay. If your hours span across long haul shifts, you can also utilize our DOT truck log calculator to manage your 70-hour/8-day cycles.
Tipped Employees and Overtime in TX
For bartenders, servers, and hospitality staff, Texas allows employers to use a "tip credit." The minimum cash wage the employer must pay is $2.13 per hour. However, when working overtime, the math gets slightly tricky. You should first convert your exact minutes worked to decimal format using our decimal hours converter before applying the tip credit formula.
| Calculation Step | Amount |
|---|---|
| Standard Minimum Wage (FLSA) | $7.25 / hr |
| Maximum Allowable Tip Credit | $5.12 / hr |
| Minimum Cash Wage (Regular) | $2.13 / hr |
| Overtime Multiplier ($7.25 × 1.5) | $10.88 / hr |
| Minimum Cash Wage (Overtime) ($10.88 minus the $5.12 tip credit) |
$5.76 / hr |