Texas Employment and Overtime
A lot of employers are at risk for overtime claims.
The Fair Labor Standards Act provides that non-exempt employees are entitled to be paid over-time. Many employers have either mis-classified employees as exempt, failed to keep satisfactory records that a non-exempt employee didn’t actually work overtime, or simply refused to pay overtime.
If a company has misclassified a worker, then it could potentially owe back wages for unpaid overtime for either two years (if the violation wasn’t intentional) or three years (for an intentional violation).
If the employer hasn’t kept time records, then the employee’s testimony will be determinative.
At a minimum, the employer should:
- have a clear exempt/non-exempt classification
- have every employee (except those clearly exempt) sign weekly time records
- educate its administrators that most employees are non-exempt and entitled to overtime pay unless they qualify for a specific exemption (the most common are professional, executive and high-level administrative)
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