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Workers in Texas under New Wage Rules

This month the Department of Labor changed certain regulations to the Fair Labor Standards Act. Two changes will affect two types of employees in Texas:

• Employees who are paid based on a fluctuating workweek payment and
• Employees who work under the tip credit rules.

The changes will take effect in May of 2011. If the new labor rules affect you, keep reading to find out how the new regulations will affect Texas employees.

Texas Fluctuating Workweek Employees
Employees who are paid in this method are paid a fixed weekly salary that is supposed to compensate workers for all hours worked, regardless of the number of hours. Under the fluctuating workweek payment system employers must also pay a premium to employees for any overtime hours which should be 50 percent of the employee's weekly regular pay rate.
 
The Department of Labor has issued a clarification to fluctuating workweek payments that says only overtime premiums are consistent with this method of payment. If employers pay bonuses or premium payments (other than overtime premiums) this could defeat the benefit of a fluctuating workweek.

Texas Tipped Employees
Employees who receive tips are also affected by new changes in the labor laws. Tipped employees under the FLSA can be paid less than minimum wage as long as the employees' wages and tips make up the difference. The new changes by the Department of Labor increase the amount that employers can claim as tip credits. To keep up with the minimum wage increase, employers can claim up to $5.12 in tip credits.

Tipped employees in Texas: Read the new tip-credit rules that apply to you

Our firm has represented employees in cities across Texas, including Houston, Dallas, San Antonio, Austin, El Paso, Fort Worth, Arlington, Corpus Christi, Plano, Lubbock, Laredo, Amarillo, Pasadena, Brownsville, Grand Prairie, Mesquite, Abilene, Beaumont, Waco, Carrollton, McAllen, Midland, Richardson, Odessa, San Angelo, Killeen, Tyler, Denton, Longview, College Station, Baytown, Bryan, Sugar Land, Round Rock, Victoria, Port Arthur, Harlingen, and Galveston.