Public and private employers must follow all provisions mandated under FLSA. FLSA categorizes employees as either exempt or non-exempt for overtime pay. FLSA exemptions depend on an employee's salary and job category. For example, employees making more than $445 per week are exempt from FLSA overtime provisions. Employees receive the same minimum wage protections in Texas as stipulated under federal law ($7.25 per hour is the mandatory minimum).

In Texas, exempt workers do not receive overtime or compensatory time as outlined in FLSA. Exempt workers include contract workers, state employees and administrative staff. An exempt worker can qualify for state compensatory time in lieu of money. However, federal provisions for compensatory time do not apply.

Non-exempt employees must be paid on a time and one-half their hourly wage schedule for overtime. For example, public safety workers have a 240-hour compensatory time limit before it becomes mandatory to receive pay.

Read More: Definition of Exempt and Non-Exempt Employees