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Unpaid Overtime Settlements in Texas: What You Need to Know

Have you worked more than 40 hours in a week but never saw the extra pay on your check? If so, you’re not alone—and you may be legally entitled to compensation. Unpaid overtime settlements are one of the most common wage claims in Texas and across the U.S., and they often result in significant payouts to underpaid employees.

Whether you’re a current employee, a recently terminated worker, or part of a group dealing with wage issues, this blog explains how unpaid overtime settlements work, what your rights are under Texas and federal law, and how to recover what you’re owed.

What Counts as Unpaid Overtime?

Under the Fair Labor Standards Act (FLSA), most employees must be paid 1.5 times their regular hourly rate for every hour worked over 40 hours in a workweek.

Unpaid overtime happens when employers:

• Fail to pay for hours over 40
  
  
• Misclassify employees as “exempt” to avoid overtime
  
  
• Pay only regular time for extra hours
  
  
• Require “off-the-clock” work
  
  
• Don’t count prep, cleanup, travel, or training hours
  
  
• Fail to calculate overtime correctly for tipped employees or shift differentials
  
  

⚠️ Even salaried workers may be entitled to overtime if they’re misclassified or do not meet the “exempt” criteria under FLSA.

Industries Where Unpaid Overtime Is Common

Unpaid overtime violations can occur in any industry but are especially common in:

• Restaurants and hospitality
  
  
• Construction and trades
  
  
• Retail and sales
  
  
• Call centers and customer service
  
  
• Healthcare (nurses, CNAs, home health aides)
  
  
• Transportation and delivery
  
  
• Security and janitorial services
  
  
• Tech and administrative roles misclassified as exempt
  
  

How Do Unpaid Overtime Settlements Work?

If your employer owes you unpaid overtime, you can:

1. File a complaint with the U.S. Department of Labor (DOL)
   
   
2. File a claim with the Texas Workforce Commission (TWC)
   
   
3. Hire a wage and hour attorney to negotiate or file a lawsuit on your behalf
   
   

Most unpaid overtime cases are resolved through settlements, where your employer agrees to pay a lump sum or structured payout to avoid trial.

Settlements often include:

• Back pay (unpaid overtime)
  
  
• Liquidated damages (often equal to back pay = double your owed wages)
  
  
• Interest
  
  
• Legal fees covered by your employer
  
  

How Much Can You Recover in a Settlement?

The amount depends on:

• How many hours of unpaid overtime you worked
  
  
• How far back the violations occurred (you can go back 2–3 years)
  
  
• Whether the violation was willful
  
  
• Whether your employer settles early or after litigation
  
  

Example:

Let’s say you worked 5 hours of unpaid overtime each week for 2 years and your regular rate was $20/hour.

• 5 hours × 52 weeks × 2 years = 520 hours
  
  
• 520 hours × $30/hour (1.5x regular rate) = $15,600 in back pay
  
  
• Add an equal amount in liquidated damages = $15,600
  
  
• Total Settlement: $31,200 (plus legal fees)
  
  

💡 Group (class action or collective) lawsuits can lead to even larger payouts if many employees were affected.

Signs You May Be Owed Overtime Pay

• You regularly work more than 40 hours/week without extra pay
  
  
• You’re salaried but do not supervise or make executive decisions
  
  
• You’re paid a day rate, shift rate, or piece rate that doesn’t account for overtime
  
  
• You’re asked to clock out but continue working
  
  
• You’re expected to answer emails or do prep work before/after shifts
  
  
• You’ve been told you’re exempt, but your job duties don’t match the exemption test
  
  

How Long Do You Have to File?

The statute of limitations for unpaid overtime is:

• 2 years for standard violations
  
  
• 3 years for willful violations
  
  

⏳ Don’t wait—if you miss the deadline, you may lose the right to recover your wages.

Can You Be Fired for Asking About Overtime Pay?

No. It’s illegal for your employer to retaliate against you for:

• Asking about overtime
  
  
• Filing a complaint
  
  
• Joining a lawsuit
  
  
• Talking to coworkers about wages
  
  

If you are fired or punished, you may also have a retaliation claim, which can increase your compensation.

How a Wage & Hour Lawyer Helps with Unpaid Overtime Settlements

A skilled attorney can:

• Review your job duties and pay records
  
  
• Determine if you’ve been misclassified
  
  
• Calculate how much you’re owed
  
  
• File complaints or lawsuits on your behalf
  
  
• Negotiate a fair settlement
  
  
• Represent you in court if necessary
  
  

They often work on a contingency basis, meaning you pay nothing unless they recover money for you.

How The Lange Firm Helps Texas Workers

At The Lange Firm, we help workers in Houston, Dallas, and across Texas recover unpaid wages through:

• Individual and group claims
  
  
• Direct employer negotiations
  
  
• Lawsuits under FLSA and Texas labor law
  
  
• Representation in DOL or TWC investigations
  
  
• Protection from employer retaliation
  
  

📞 Contact us today for a free consultation. You work hard—make sure you’re paid what you’re owed.

Final Thoughts

If you’ve worked unpaid overtime in Texas, you have rights—and you may be entitled to back pay, damages, and legal fees. Employers that violate wage laws often count on employees not knowing their rights. Don’t let them get away with it.

✅ Speak with an attorney. Get the facts. And take the first step toward an unpaid overtime settlement that reflects the true value of your time and labor.