Texas Overtime Laws for Hourly Employees (2026)

The rule

	Texas
Weekly threshold	Over 40 hours worked in a workweek (a fixed, recurring 168-hour period)
Daily threshold	None. A long day is not overtime unless the week passes 40 hours
Rate	At least 1.5 times the employee's regular rate of pay for the hours over 40
Who is covered	Nonexempt employees of covered employers under the federal FLSA
Common exemptions	Executive, administrative, professional, and outside sales employees who meet the federal duties and salary tests
Texas rule	Texas has no separate overtime statute for private employers. The federal rule is the rule.

What the federal rule requires

The Fair Labor Standards Act (FLSA) requires covered, nonexempt employees to be paid at least time and a half their regular rate for every hour worked over 40 in a workweek. The workweek is a fixed, regularly recurring period of seven consecutive 24-hour days; it can start on any day, but it cannot move around to avoid overtime.

There is no daily overtime under federal law. Work on a weekend, holiday, or night shift is paid at the regular rate unless the week's hours go past 40. The FLSA also sets no limit on how many hours an employee 16 or older may work in a week.

The regular rate is not always the hourly wage. Nondiscretionary bonuses, shift differentials, and commissions are folded in before the 1.5 multiplier is applied, which is why a bonus paid in a week with overtime raises the overtime rate for that week.

What Texas law does and does not add

The Texas Workforce Commission's own employer guide describes overtime as a federal matter: generally time and a half for all hours worked in excess of 40 in a seven-day workweek. The Texas Payday Law, which the TWC enforces, governs paydays, deductions, and final pay, and refers employers to the FLSA for overtime. Texas employees who are exempt from federal overtime must simply be paid at least once a month under the Payday Law.

One practical point from the TWC guide: only hours actually worked count toward the 40. Paid holiday and paid leave hours do not, unless the employer's own policy says they do.

Worked example: a 12-person HVAC company

A technician paid $24 an hour works 9, 9, 9, 9, and 8 hours, then a 4-hour Saturday call: 48 hours in the workweek.

The 9-hour days earn nothing extra on their own; Texas has no daily overtime.
40 hours at $24: $960. 8 hours at $36 (1.5 times $24): $288. Gross: $1,248.
If the technician also earned a $100 nondiscretionary bonus that week, the regular rate rises to about $26.08 ($1,252 divided by 48 hours) and the 8 overtime hours are owed an extra half-time premium on that higher rate.

How to track it

With no daily trigger, the number that matters is each employee's running total inside the workweek you define. Drive time between jobs and short paid breaks count as hours worked, so they have to be on the clock or the total is wrong.

ClockOut totals hours by the company's workweek, shows week-to-date hours on every punch, and flags employees on track to pass 40 before the schedule ends. Punch controls limit clock-ins to the scheduled window, which is the simplest way to keep a 40-hour schedule from becoming a 43-hour timesheet.

Texas overtime FAQ

Does Texas have daily overtime?

No. Texas follows the federal FLSA, which counts overtime by the workweek only. A 12-hour shift is paid at the regular rate unless the employee's total for that week goes past 40 hours.

Do paid holidays, PTO, or sick days count toward the 40 hours?

No. Only hours actually worked count toward the federal 40-hour threshold. An employee who works 36 hours and takes 8 hours of paid holiday has 44 paid hours but no overtime, unless your own policy promises otherwise.

Can I give comp time instead of paying overtime?

Not in the private sector. Comp time in place of overtime pay is available only to public agencies under the FLSA. A private employer can adjust hours within the same workweek to keep the total at or under 40, but once the week is over the overtime is owed in cash.

Can employees waive overtime or agree to a flat weekly pay?

No. Overtime cannot be waived by agreement, and an announcement that unapproved overtime will not be paid does not cancel the obligation. Employers can discipline for working unapproved hours, but the hours still get paid at the overtime rate.

Sources, checked September 9, 2026

This is general information, not legal advice. Rules change; check the linked source.