FAQ Category
Wage, Hour & Classification FAQs
Exempt versus nonexempt, overtime calculations, contractor classification, and the FLSA questions Texas employers get wrong most often.
Last updated: July 03, 2026 • 22 answers in this category
- Can a Texas company train and supervise a contractor like an employee?
- Do bonuses or commissions affect overtime calculations?
- Does paying a salary automatically make an employee exempt from overtime?
- Does the FLSA apply to Texas nonprofits?
- How do Texas employers decide whether an employee is exempt or nonexempt?
- How is FLSA overtime calculated for Texas employees?
- How often should Texas employers audit exempt and nonexempt classifications?
- How should a Texas business onboard a 1099 contractor?
- How should a Texas employer prepare for a Department of Labor or payroll audit?
- What are the HR risks of misclassifying a worker as a contractor?
- What documents should be collected from independent contractors?
- What does FLSA exempt mean for a Texas employer?
- What does the "No Tax on Overtime" law mean for Texas employers?
- What final pay issues should employers handle after a resignation or termination?
- What is the "7-minute rule," and can Texas employers round employee time?
- What is the difference between a 1099 contractor and an employee in Texas?
- What job duties should be reviewed before classifying a role as exempt?
- What payroll records should Texas employers keep to defend overtime decisions?
- What should employers do if they discover past overtime underpayments?
- When do Texas nonprofits need to pay overtime?
- When must a Texas employer pay time-and-a-half under the FLSA?
- When should a Texas business review 1099 contractor classifications?
The FLSA exemption thresholds in force
Controlling authority: DOL WHD earnings thresholds, restored by the technical amendment of 14 May 2026. The standard salary level is $684 per week; the highly compensated employee threshold is $107,432.
| Threshold | Amount now in force | Note |
|---|---|---|
| Standard salary level (executive, administrative, professional) | $684 per week ($35,568 a year) | The 2019 level. The higher 2024 figures were vacated nationwide in November 2024. |
| Highly compensated employee | $107,432 a year | Must include at least $684 a week paid on a salary or fee basis. |
| Computer employees paid hourly | $27.63 per hour | Alternative to the salary basis. |
| Motion picture industry base rate | $1,043 per week | Or a proportionate amount by days worked. |
| Doctors, lawyers, teachers, outside sales | No salary threshold applies | Duties tests still govern. |
The Three-Gate Exemption Test
Free tool
Exempt vs Nonexempt Classification Checker
Walks the salary basis, salary level and duties tests for a single role.
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