Fair Labor Standards Act
The federal wage-and-hour statute establishing minimum wage, overtime pay, recordkeeping, and child labor standards for covered employees. Operates alongside the Texas Payday Law, FLSA governs the amount of wages owed; the Payday Law governs the timing.
The Fair Labor Standards Act (FLSA) is the federal wage-and-hour statute establishing minimum wage, overtime pay, recordkeeping, and child labor standards for covered employees. FLSA applies to most Texas employers and operates alongside the Texas Payday Law, FLSA governs the amount of wages owed; the Payday Law governs the timing.
Coverage
FLSA covers employees of "enterprises" with annual gross volume of $500,000 or more, plus employees individually engaged in interstate commerce or producing goods for commerce. § 203(s). Most Texas businesses are FLSA-covered through one or both bases; coverage analysis is rarely a meaningful obstacle.
Minimum wage
Federal minimum wage is $7.25 per hour. § 206. Texas adopts the federal minimum wage; there is no separate Texas minimum wage above federal. Tex. Lab. Code § 62.051.
Overtime
Non-exempt employees must receive overtime compensation at one-and-one-half times their regular rate of pay for hours worked over 40 in a workweek. § 207(a). The "regular rate" includes most non-discretionary compensation, not just base hourly rate.
Exemptions
Specified categories of employees are exempt from minimum wage, overtime, or both. § 213. See Exempt vs. Non-Exempt Employee for the principal exemptions.
Remedies
Backpay for unpaid wages; liquidated damages equal to the backpay (effectively doubling) unless the employer proves good-faith reasonable belief; attorney's fees and costs. § 216. Statute of limitations: 2 years for ordinary violations, 3 years for willful violations. § 255.
Enforcement
U.S. Department of Labor Wage and Hour Division investigates and litigates FLSA claims. Employees may also file private civil actions in federal or state court. § 216(b).
FLSA misclassification of non-exempt employees as exempt is the single most common federal employment-law violation. Texas businesses commonly run afoul of: (1) the salary basis test for executive, administrative, and professional exemptions; (2) overtime calculation including bonuses and commissions in the regular rate; (3) recordkeeping of hours worked by non-exempt employees. Coordination with the Texas Payday Law is critical, most disputes invoke both statutes.