Texas Minimum Wage Act — Limited Coverage
The Texas Minimum Wage Act (Chapter 62 of the Texas Labor Code) does not apply to employees covered by the federal Fair Labor Standards Act. Because the FLSA covers most private-sector employees engaged in interstate commerce, the Texas act applies only to the narrow category of employees not subject to federal minimum-wage law. For FLSA-covered employees, federal wage-and-hour standards govern.
Source: Tex. Lab. Code § 62.151
Texas Payday Law — Payment Frequency and Final Paycheck Deadlines
The Texas Payday Law (Chapter 61 of the Texas Labor Code) establishes minimum payment frequency requirements for ongoing employment and separate final-paycheck deadlines that vary depending on whether the employee's separation was voluntary or involuntary. These requirements apply to all Texas employers and are enforced by the Texas Workforce Commission.
Regular payment frequency during employment
Tex. Lab. Code § 61.011 sets different minimum payment frequencies based on the employee's exemption status under the Fair Labor Standards Act:
- Exempt employees: Under § 61.011(a), an employer must "pay wages to each employee who is exempt from the overtime pay provisions of the Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) at least once a month." An employee is exempt from FLSA overtime if the employee meets both the duties test and the salary-basis test under 29 C.F.R. Part 541 (the white-collar exemptions for executive, administrative, professional, computer, and outside sales employees, or the highly compensated employee alternative).
- Non-exempt employees: Under § 61.011(b), an employer must "pay wages to an employee other than an employee covered by Subsection (a) at least twice a month." This covers all employees entitled to overtime pay under the FLSA. If wages are paid twice a month, § 61.011(c) requires that "each pay period must consist as nearly as possible of an equal number of days."
Employers may pay more frequently than these statutory minimums — weekly or bi-weekly payroll schedules satisfy the twice-monthly and monthly requirements.
Designation and notice of paydays
Tex. Lab. Code § 61.012(a) requires employers to "designate paydays in accordance with Section 61.011." Section 61.012(b) provides a statutory default: "If an employer fails to designate paydays, the employer's paydays are the first and 15th day of each month." Section 61.012(c) requires the employer to "post, in conspicuous places in the workplace, notices indicating the paydays."
Final paycheck timing upon separation
Tex. Lab. Code § 61.014 imposes different final-paycheck deadlines depending on whether the employee was discharged or voluntarily resigned:
- Involuntary termination (discharge): Section 61.014(a) requires an employer to "pay in full an employee who is discharged from employment not later than the sixth day after the date the employee is discharged." The six-day period is measured in calendar days, not business days, and begins the day after the discharge. "Discharge" covers any involuntary separation: termination for cause, layoff, reduction in force, or elimination of the position.
- Voluntary resignation: Section 61.014(b) requires an employer to "pay in full an employee who leaves employment other than by discharge not later than the next regularly scheduled payday." This rule applies regardless of how much notice the employee provided. If an employee resigns effective Friday and the employer's regular payday schedule is bi-weekly on Fridays, the final paycheck is due on the next bi-weekly Friday, even if that is two weeks away.
What "in full" includes
The statute does not define what "in full" encompasses. The Texas Workforce Commission explains in its guidance that final pay includes regular wages for hours worked, accrued overtime, and commissions or bonuses due under any applicable wage agreement. Accrued vacation, sick leave, or severance are included only if the employer has a written policy or agreement providing for payment at separation; Texas statutory law does not mandate payout of unused paid time off in the absence of such a written policy.
TWC guidance further states that it is not lawful to withhold a final paycheck past the applicable statutory deadline for reasons such as failure to return company property, failure to sign timesheets, or similar disputes. An employer who fails to pay the final paycheck on time violates the Texas Payday Law even if the employee has not returned a laptop or uniform. (The statute itself is silent on this point; the guidance reflects TWC's enforcement position.)
Enforcement and remedies
An employee who is not paid on time may file a wage claim with the Texas Workforce Commission under Tex. Lab. Code § 61.051. The filing deadline is strict: the claim must be submitted "not later than 180 days after the date the wages were originally due to be paid" (§ 61.051(c)). For final paychecks, this means 180 days from the sixth day after discharge or the next regularly scheduled payday after resignation.
The TWC investigates and may issue a Preliminary Wage Determination Order. If the TWC finds wages are due, it can order the employer to pay the unpaid amount. If the TWC determines the employer acted in bad faith, it may assess an administrative penalty of up to $1,000 per violation under Tex. Lab. Code § 61.053. However, the Payday Law administrative process does not provide for liquidated damages or attorney's fees — the employee recovers only the actual unpaid wages determined to be due.
For a more detailed discussion of payment frequency rules during employment, see the Payment Frequency Requirements section. For a detailed discussion of final-paycheck timing rules, voluntary-vs.-involuntary classification, TWC enforcement framework, and remedies, see the Final Paycheck Timing section.
Source: Tex. Lab. Code § 61.011 Source: Tex. Lab. Code § 61.012 Source: Tex. Lab. Code § 61.014 Source: Tex. Lab. Code § 61.051 Source: Tex. Lab. Code § 61.053 Source: TWC — Final Pay
Texas Minimum Wage Rate
Texas does not set an independent state minimum wage. Instead, Tex. Lab. Code § 62.051 requires employers to pay "the federal minimum wage under Section 6, Fair Labor Standards Act of 1938 (29 U.S.C. Section 206)." The federal minimum wage has been $7.25 per hour since July 24, 2009. Because Texas adopts the federal rate by reference, the Texas minimum wage is currently $7.25 per hour for employees not covered by the FLSA (as covered employees are governed directly by federal law under § 62.151).
Source: Tex. Lab. Code § 62.051
Overtime Requirements — FLSA Applies, No State Overlay
Texas does not have a separate state overtime statute for private-sector employees. Overtime in Texas is governed exclusively by the federal Fair Labor Standards Act (FLSA), codified at 29 U.S.C. § 207. The Texas Workforce Commission confirms that the FLSA overtime provisions apply to all covered employees in Texas, with no additional state-level requirements or protections beyond the federal floor.
The FLSA overtime standard
Under 29 U.S.C. § 207(a)(1), covered non-exempt employees must receive overtime compensation at a rate not less than one and one-half times their regular rate of pay for all hours worked in excess of 40 hours in a workweek. The FLSA defines a workweek as a fixed and regularly recurring period of 168 hours—seven consecutive 24-hour periods—which may begin on any day and at any hour of the day (29 C.F.R. § 778.105). Each workweek stands alone for overtime calculation purposes; partial workweeks at the end of a pay period do not carry over (29 C.F.R. § 778.104).
No daily overtime trigger
Unlike states such as California, which require daily overtime after 8 or 12 hours in a workday, Texas follows only the federal weekly threshold. An employee in Texas who works 12 hours in a single day but does not exceed 40 hours in the workweek is not entitled to overtime pay under Texas law or the FLSA. Overtime liability arises solely when total hours worked in the workweek exceed 40.
Paid leave and holidays do not count toward overtime
Only hours actually worked count toward the 40-hour overtime threshold. Time represented by paid holidays, paid vacation, or other paid leave does not count as hours worked for purposes of calculating overtime under the FLSA. An employee who takes 8 hours of paid vacation and works 36 hours in the same workweek has worked 36 hours for overtime purposes, not 44.
The Texas Payday Law enforces FLSA overtime
While Texas does not impose its own overtime entitlement, the Texas Payday Law (Texas Labor Code Chapter 61) addresses the timely payment of earned wages, including overtime wages due under the FLSA. Employees may file a wage claim with the Texas Workforce Commission for unpaid overtime, but the Payday Law imposes a strict 180-day filing deadline from the date wages were due (measured from the scheduled payday). For overtime claims beyond that 180-day window, the FLSA provides a longer statute of limitations—two years for ordinary violations, three years for willful violations—and claims must be pursued through the U.S. Department of Labor's Wage and Hour Division or in federal court.
State employees—compensatory time alternative
Texas state government employees subject to FLSA overtime provisions are also covered by Tex. Gov't Code § 659.015, which permits state agencies to provide compensatory time off at 1.5 hours for each overtime hour worked, in lieu of cash overtime pay, depending on agency policy. This comp-time alternative is available only to public employers; private-sector employers in Texas may not substitute comp time for cash overtime payments except in the narrow circumstances permitted by federal law.
Source: 29 U.S.C. § 207) Source: 29 C.F.R. § 778.104 Source: 29 C.F.R. § 778.105 Source: Texas Workforce Commission—FLSA Overview Source: Texas Workforce Commission—Hours Worked Source: Tex. Gov't Code § 659.015
Tipped Minimum Wage — $2.13 Cash Wage Plus Tip Credit
Texas permits employers to pay tipped employees a reduced cash wage and claim a tip credit against the full minimum wage, following the federal Fair Labor Standards Act framework. Tex. Lab. Code § 62.052(a) provides that in determining the wage of a tipped employee, "the amount paid the employee by the employer is the amount described as paid to a tipped employee under Section 3(m), Fair Labor Standards Act of 1938 (29 U.S.C. Section 203(m))." Because most Texas employers and employees are covered by the FLSA (Tex. Lab. Code § 62.151), the federal tipped-wage rules govern in practice for the vast majority of tipped workers in the state.
Cash wage requirement
Under 29 U.S.C. § 203(m)(2)(A), an employer may pay a tipped employee a direct cash wage of at least $2.13 per hour, provided the employee's tips bring total compensation to at least the applicable minimum wage ($7.25 per hour under federal law, which Texas adopts by reference in Tex. Lab. Code § 62.051). The $2.13 figure has been frozen since August 20, 1996; the statute requires the cash wage to be "not less than the cash wage required to be paid such an employee on August 20, 1996."
Tip credit mechanics
The employer may claim a tip credit—the difference between the cash wage paid and the full minimum wage—of up to $5.12 per hour ($7.25 – $2.13 = $5.12). The tip credit may not exceed the value of tips actually received by the employee in a given workweek. If an employee's tips plus the $2.13 cash wage do not equal at least $7.25 per hour for all hours worked in the workweek, the employer must make up the difference on the regular payday for that period.
Definition of "tipped employee"
Under federal law (29 U.S.C. § 203(t)), a "tipped employee" is one who "customarily and regularly receives more than $30 a month in tips." The Texas statute uses a slightly lower threshold: Tex. Lab. Code § 62.052(b) defines a "tipped employee" as "an employee engaged in an occupation in which the employee customarily and regularly receives more than $20 a month in tips." However, because the Texas Minimum Wage Act does not apply to employees covered by the FLSA (Tex. Lab. Code § 62.151), the federal $30-per-month threshold applies for FLSA-covered employees. For the narrow category of employees not covered by the FLSA, the Texas $20-per-month definition would control.
Employer notice requirement
Before claiming a tip credit, the employer must inform the employee of the following, either orally or in writing: (1) the amount of the direct cash wage being paid (at least $2.13 per hour); (2) the amount claimed as a tip credit (up to $5.12 per hour); (3) that the tip credit cannot exceed the tips actually received; (4) that all tips received belong to the employee, except as permitted in a valid tip pool among employees who customarily and regularly receive tips; and (5) that the tip credit will not apply unless the employee has been informed of these provisions. An employer that fails to provide this notice may not claim a tip credit and must pay the full minimum wage for all hours worked.
Tip pooling
Valid tip pools are permitted among employees who customarily and regularly receive tips (such as servers, bartenders, and bussers). Employers, managers, and supervisors may not participate in a tip pool, and employees who do not customarily and regularly receive tips (such as cooks, dishwashers, or janitors) may not be required to contribute to a pool when the employer is taking a tip credit. All tips remain the property of the employee; the FLSA prohibits employers from keeping any portion of tips for any purpose.
Dual jobs and the 80/20 rule
When a tipped employee performs both tip-producing duties (e.g., serving customers) and related supporting duties (e.g., rolling silverware, restocking), the employer may claim a tip credit for the time spent on supporting duties only if such work does not occupy a substantial amount of time. Under DOL regulations at 29 C.F.R. § 531.56(f), an employer may not take a tip credit for time spent in duties that are not part of the employee's tipped occupation, or for time spent performing supporting work that exceeds 20 percent of the hours worked during the workweek (or, on a continuous basis, more than 30 minutes). If a tipped employee is employed in two distinct occupations by the same employer (a "dual jobs" scenario, such as a bartender who also works as a janitor), the tip credit is available only for hours worked in the tipped occupation.
Remedies for violations
An employer who violates Tex. Lab. Code § 62.052 is liable to the affected employee in the amount of unpaid wages plus an additional equal amount as liquidated damages (Tex. Lab. Code § 62.201). An action to recover such wages must be brought within two years of the date the unpaid wages were due (Tex. Lab. Code § 62.202). Employees may also file a wage claim with the Texas Workforce Commission under the Texas Payday Law, subject to a 180-day filing deadline. For FLSA-covered employees, federal remedies include a two-year statute of limitations (three years for willful violations), recovery of unpaid wages and liquidated damages, and mandatory attorney's fees for prevailing plaintiffs under 29 U.S.C. § 216(b).
Source: Tex. Lab. Code § 62.052 Source: 29 U.S.C. § 203(m)) Source: 29 U.S.C. § 203(t)) Source: DOL Fact Sheet #15: Tipped Employees Under the FLSA Source: 29 C.F.R. § 531.56(f)
Payment Frequency Requirements — Semi-Monthly for Non-Exempt, Monthly for Exempt
The Texas Payday Law (Chapter 61 of the Texas Labor Code) imposes minimum payment frequency requirements that vary by employee classification under the Fair Labor Standards Act. Employers must pay non-exempt employees at least twice per month, while exempt employees may be paid once per month.
Non-exempt employees — semi-monthly minimum
Under Tex. Lab. Code § 61.011(b), an employer must "pay wages to an employee other than an employee covered by Subsection (a) at least twice a month." Subsection (a) covers only employees exempt from the FLSA overtime provisions; therefore, subsection (b) applies to all non-exempt employees — those entitled to overtime pay under 29 U.S.C. § 207.
The statute does not prescribe specific dates for the two monthly paydays, but § 61.011(c) provides that "if wages are paid twice a month, each pay period must consist as nearly as possible of an equal number of days." This means that semi-monthly pay periods should divide the month approximately evenly (e.g., the 1st through 15th and the 16th through the end of the month, or similar structures). The Texas Workforce Commission confirms that non-exempt employees must be paid at least semi-monthly.
Employers may choose to pay non-exempt employees more frequently than twice per month — weekly or bi-weekly payroll schedules are permissive and satisfy the statutory minimum.
Exempt employees — monthly minimum
Tex. Lab. Code § 61.011(a) requires an employer to "pay wages to each employee who is exempt from the overtime pay provisions of the Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) at least once a month." An "exempt" employee under this provision is one who meets both the duties test and the salary-basis test for exemption from FLSA overtime under 29 C.F.R. Part 541 (the white-collar exemptions for executive, administrative, professional, computer, and outside sales employees, as well as the highly compensated employee alternative).
Because exempt employees are paid on a salary basis, monthly payment aligns with their compensation structure. The employer may pay exempt employees more frequently (semi-monthly, bi-weekly, or weekly), but the statute requires payment at least once per calendar month.
Designation and notice of paydays
Tex. Lab. Code § 61.012 requires employers to designate regular paydays in advance. The employer must post a notice in a conspicuous location in the workplace showing the designated paydays. If the employer does not designate paydays, the statute provides a default: paydays are the first and 15th of each month. If the employer changes the designated paydays, it must provide reasonable advance notice to employees, though the statute does not specify a minimum notice period.
Federal law does not mandate pay frequency
Unlike Texas, federal law under the FLSA does not prescribe minimum payment frequency. The U.S. Department of Labor leaves pay frequency to the employer's discretion, subject to any applicable state law. Because Texas employers must comply with both federal and state wage-payment rules, the Texas Payday Law's semi-monthly and monthly requirements set the operative floor for payment frequency in the state.
Relation to final-paycheck timing
The payment frequency rules in § 61.011 govern regular paydays during employment. Final paychecks upon separation are governed separately by Tex. Lab. Code § 61.014, which requires employers to pay discharged employees within six calendar days and employees who resign by the next regularly scheduled payday. Those final-paycheck timing rules are independent of the regular payment frequency requirements.
Source: Tex. Lab. Code § 61.011 Source: Tex. Lab. Code § 61.012 Source: TWC — Methods of Pay
Final Paycheck Timing — Six Days for Discharge, Next Payday for Resignation
The Texas Payday Law imposes different final-paycheck deadlines depending on whether the employee was involuntarily terminated or voluntarily resigned. Tex. Lab. Code § 61.014 sets a six-calendar-day deadline for discharged employees and a next-regular-payday deadline for employees who quit.
Involuntary termination — six-day rule
Under Tex. Lab. Code § 61.014(a), "an employer shall pay in full an employee who is discharged from employment not later than the sixth day after the date the employee is discharged." The six-day period is measured in calendar days, not business days, and begins the day after the discharge. If an employee is terminated on Tuesday, the final paycheck must be paid in full by the following Monday (six calendar days later).
"Discharge" covers any involuntary separation initiated by the employer: termination for cause, layoff, reduction in force, or elimination of the position. The Texas Workforce Commission (TWC) applies § 61.014(a) to all involuntary separations, including those the employer characterizes as "laid off, discharged, fired, or otherwise involuntarily separated from employment."
Voluntary resignation — next-payday rule
Under Tex. Lab. Code § 61.014(b), "an employer shall pay in full an employee who leaves employment other than by discharge not later than the next regularly scheduled payday." This rule applies when the employee quits, retires, or otherwise leaves employment voluntarily. The timing does not depend on how much notice the employee gave; an employee who provides two weeks' notice and an employee who quits with no notice are both entitled to final pay on the next regularly scheduled payday following the effective date of the resignation.
If an employee resigns effective Friday, and the employer's regular payday schedule is bi-weekly on Fridays, the final paycheck is due on the next bi-weekly Friday, even if that is two weeks away. The employer may pay sooner, but the statute does not require acceleration.
Voluntary vs. involuntary — TWC framework
The statute does not define "discharge" or explain how to classify ambiguous separations. The TWC applies the framework used in unemployment compensation cases: if the employee initiates the work separation and leaves while continued work is still available, the separation is voluntary (triggering the next-payday rule); if the employer initiates it, the separation is involuntary (triggering the six-day rule). The TWC guidance states that "mutual agreement" separations are "generally regarded as involuntary," but notes that the result depends on the specific facts and circumstances of each case.
Constructive discharge — when an employer makes working conditions so intolerable that a reasonable person would feel compelled to resign — is treated as an involuntary termination for purposes of final-paycheck timing under TWC guidance, triggering the six-calendar-day deadline rather than the next-payday rule.
Scope of "final pay"
Tex. Lab. Code § 61.014 requires the employer to pay "in full" the employee who is discharged or who leaves employment. The statute does not define what "in full" includes. The TWC guidance explains that "final pay" encompasses regular wages for hours worked, accrued overtime, and commissions or bonuses due under any applicable wage agreement. Fringe benefits such as accrued vacation, sick leave, or severance are included only if the employer has a written policy or agreement providing for payment at separation; Texas law does not mandate payout of unused paid time off in the absence of such a policy.
For commissions and bonuses, the TWC states that the payment schedule outlined in the wage agreement or policy determines the deadline for payment. If the agreement does not specify a different schedule, the § 61.014 deadline applies.
Prohibitions on withholding
TWC guidance makes clear that it is not legal to hold a final paycheck past the applicable deadline for reasons such as failure to return company property, failure to sign timesheets, or similar disputes. An employer who fails to pay the final paycheck on time violates the Texas Payday Law even if the employee has not returned a laptop or uniform. Permissible deductions from the final paycheck are governed separately by Tex. Lab. Code § 61.018 and require either a court order, authorization by state or federal law, or the employee's written consent for a lawful purpose.
Remedies and enforcement
An employee who is not paid final wages on time may file a wage claim with the Texas Workforce Commission under Tex. Lab. Code § 61.051, subject to a 180-day filing deadline measured from the date the wages became due (the sixth day after discharge, or the next regularly scheduled payday after resignation). The TWC investigates and issues a preliminary wage determination order dismissing the claim or ordering payment of wages determined to be due and unpaid. If the TWC determines that the employer acted in bad faith in not paying wages, it may assess an administrative penalty in addition to ordering payment of the wages (Tex. Lab. Code § 61.053).
Chapter 61 of the Texas Labor Code does not provide employees with a statutory private right of action for wage-payment violations. Employees who have been denied wages may file a wage claim with the TWC or pursue common-law breach-of-contract claims in court, but they may not bring a statutory claim for liquidated damages or attorney's fees under Chapter 61 itself. (In contrast, violations of the Texas Minimum Wage Act in Chapter 62 do provide for liquidated damages and a two-year statute of limitations under Tex. Lab. Code § 62.201.)
Source: Tex. Lab. Code § 61.014 Source: Tex. Lab. Code § 61.051 Source: Tex. Lab. Code § 61.053 Source: Tex. Lab. Code § 61.018 Source: TWC — Final Pay
Overtime Claim Remedies — TWC Payday Law vs. FLSA Pathways
An employee with an unpaid overtime claim in Texas has three principal paths to recovery: (1) filing a wage claim with the Texas Workforce Commission under the Texas Payday Law (Tex. Lab. Code Chapter 61); (2) filing a complaint with the U.S. Department of Labor's Wage and Hour Division under the Fair Labor Standards Act; or (3) filing a private lawsuit in state or federal court under the FLSA or the Texas Minimum Wage Act (Tex. Lab. Code Chapter 62). The choice of forum turns on the age of the claim, the remedies available, and whether the employee seeks liquidated damages and attorney's fees.
Texas Workforce Commission — Payday Law administrative process
Under the Texas Payday Law, an employee may file a wage claim with the TWC for unpaid overtime wages. The filing deadline is strict: the claim must be submitted "no later than 180 days after the date the wages were originally due to be paid" (Tex. Lab. Code § 61.051(c), as confirmed by TWC guidance). The 180-day period is measured from the scheduled payday on which the unpaid overtime should have been paid, not from the date the work was performed or the date employment ended.
The TWC process is free and does not require an attorney. The TWC investigates the claim and issues a Preliminary Wage Determination Order. If the TWC finds wages are due, it can order the employer to pay the unpaid amount and assess administrative penalties of up to $1,000 per violation (Tex. Lab. Code § 61.053). However, the Payday Law administrative process does not provide for liquidated damages or attorney's fees. The employee recovers only the actual unpaid wages determined to be due. Additionally, the TWC does not conduct proactive audits; it only investigates claims that are filed.
Advantages of the TWC process: No filing fee; no need for an attorney; relatively quick administrative resolution for straightforward claims; the TWC can issue an order and file an administrative lien if the employer does not pay.
Disadvantages: The 180-day deadline bars recovery of older unpaid wages; no liquidated damages (which can double recovery under federal law); no statutory right to attorney's fees; commission-and-bonus disputes may be resolved under TWC regulatory interpretations rather than common-law contract principles, which can produce less-favorable outcomes for the employee.
FLSA — Department of Labor complaint or private lawsuit
Because Texas has no state overtime statute (overtime in Texas is governed exclusively by the FLSA for covered employees), unpaid overtime claims are enforceable under 29 U.S.C. § 207. The FLSA provides a two-year statute of limitations, extended to three years for willful violations (29 U.S.C. § 255(a)). The statute of limitations runs from the date of each pay period in which overtime was not paid; each payday triggers a new accrual of the claim for that period's unpaid overtime.
An employee may file a confidential complaint with the U.S. Department of Labor's Wage and Hour Division (WHD). The WHD will investigate and may recover back wages on behalf of the employee and other affected employees at no cost to the employee. Alternatively, the employee may file a private lawsuit in federal or state court under 29 U.S.C. § 216(b).
Remedies under the FLSA are significantly more robust than under the TWC Payday Law:
- Unpaid overtime compensation for all hours worked over 40 in a workweek (or over the applicable threshold) at the statutory rate (time-and-a-half the regular rate of pay).
- Liquidated damages in an amount equal to the unpaid wages, effectively doubling the recovery, unless the employer proves it acted in good faith and had reasonable grounds for believing it was in compliance (29 U.S.C. § 216(b); 29 U.S.C. § 260). Liquidated damages are mandatory unless the employer meets the stringent good-faith defense.
- Mandatory attorney's fees and costs for a prevailing employee plaintiff (29 U.S.C. § 216(b)). The court "shall … allow a reasonable attorney's fee to be paid by the defendant, and costs of the action." This fee-shifting provision makes it economically feasible for employees to retain counsel even when the unpaid amount is modest.
Texas Minimum Wage Act — state-law alternative for non-FLSA-covered employees
For the narrow category of employees not covered by the FLSA (Tex. Lab. Code § 62.151 provides that the Texas Minimum Wage Act does not apply to employees covered by the federal Fair Labor Standards Act), a claim for unpaid wages may be brought under Tex. Lab. Code Chapter 62. Such claims have a two-year statute of limitations from the date the wages were due (Tex. Lab. Code § 62.202). An employee who prevails is entitled to recover the unpaid wages plus an additional equal amount as liquidated damages, and the employer may be assessed reasonable attorney's fees and court costs (Tex. Lab. Code § 62.201). However, because most Texas employees are FLSA-covered, Chapter 62 remedies are rarely the operative path for overtime claims; the FLSA is almost always the controlling statute for overtime disputes.
Choosing the right path
- For claims within 180 days of the payday on which wages were due: An employee may file with the TWC for a quick administrative resolution of a straightforward claim, or may pursue an FLSA complaint or lawsuit to obtain liquidated damages and attorney's fees. Filing a TWC wage claim does not preclude a later FLSA lawsuit if the administrative process does not resolve the claim, but employees should consult counsel before electing remedies, as the TWC's final determination may have preclusive effect in some circumstances.
- For claims older than 180 days but within two years (or three for willful violations): The employee must pursue the claim under the FLSA, either by filing a complaint with the DOL Wage and Hour Division or by filing a private lawsuit in federal or state court. The TWC cannot investigate claims outside the 180-day window.
- For large or complex claims, or when liquidated damages and attorney's fees are important: An FLSA lawsuit is typically the better path. The prospect of liquidated damages (doubling the recovery) and mandatory fee-shifting makes it economically viable to retain experienced employment counsel and pursue full recovery, including for misclassified exempt employees, regular-rate miscalculations, off-the-clock work, and other systematic violations.
Source: Tex. Lab. Code § 61.051 Source: Tex. Lab. Code § 61.053 Source: Tex. Lab. Code § 62.151 Source: Tex. Lab. Code § 62.201 Source: Tex. Lab. Code § 62.202 Source: 29 U.S.C. § 216(b) Source: 29 U.S.C. § 255 Source: 29 U.S.C. § 260 Source: TWC — Texas Payday Law