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OVERTIME PAY CONSIDERATIONS AND COVID-19

Texas follows the Federal Fair Labor Standards Act (FSLA) concerning payment for ‘overtime’ work. These are minimum standards and can be quite restrictive. Many employers have a more generous benefit scheme than provided by the FSLA. You need to check with your employer’s Human Resources to find out about your company’s policies. This article will only deal with the FSLA law.

The FSLA law does not cover all employees. The major coverage limitations are

  1. FSLA only applies to employers who engage in interstate commerce with more than $500,000 in annual business volume.
  2. FSLA overtime rules only apply to employees who earned less than $35,568 per year (equivalent of $17.10/hr.) . The following class of workers are excluded from FSLA overtime regulations: a. Professional or managerial employees.
    b. Many commissioned salespersons.
    c. Truck drivers who are paid by the trip or mileage.
    d. Independent contractors.
    e. Farm workers.
    d. Domestic workers employed by individual families.

Taking these limitations into account, a huge swath of workers are not entitled to overtime pay. People who are entitled are generally hourly employees, earning less than $17.10 an hour who work for companies engaged in interstate commerce with more than $500,000 a year business earnings.

For those persons covered by FSLA, for hours worked in excess of 40 hours worked in a 7 day work week period, the employer is required to pay the employee at a rate of 1 ½ times the hourly rate for the excess hours. The employer defines on what day the work week starts. It need not be on a Sunday. Further the FSLA puts no limits on the number of hours an employer can require one to work.

Time at work means all time that you are engaged in activity required by the employer. This generally includes work done at home, especially during Covid-19, waiting time, re-do work, and short breaks.

This amount may change due to Department of Labor Regulations.

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