Employer & Employee Relations / Disputes


Employers are generally required by labor laws to pay employees a minimum wage, and to compensate them for overtime. In Texas, this minimum wage is set at $7.25 an hour. When employees work more than 40 hours in a work week, their employer is required to pay their employee at 1.5x their regular rate of pay for these extra hours. This remains true even if the employee is salaried, as long as an exemption or exception does not apply.



There are a handful of specific exemptions that allow an employer to not pay overtime. One of the main exemptions is the "EAP exemption". Under this exemption, an employer does not have to pay an overtime rate for certain employees whose primary duty falls under an executive, administrative, or professional function. Each class carries with it specific requirements that must be met for an employer to bypass the overtime requirement. The executive exemption, for instance, requires an employee to be at least $455 a week on a salary basis, has the primary duty of management, regularly directs the work of two or more employees, and has "the authority to hire or fire other employees or whose suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees are given particular weight."

While a full list of exemptions and the complete details of the EAP exemption are beyond the scope of this page, it's important to understand that job titles do not determine whether an employee is exempt. For this reason, if you feel you are being treated unfairly and not being paid the money you are owed for working, don't hesitate to schedule a free consultation and I would be happy to talk with you about it.