FLSA

The Fair Labor Standards Act sets federal minimums for minimum wage, overtime pay, recordkeeping, and child labor. It applies to virtually every restaurant employer regardless of size. Texas follows federal FLSA rules.

Non-exempt employees must be paid at least 1.5× their regular rate for all hours worked over 40 in a single workweek — not per pay period, not per day. Averaging hours across weeks is not permitted.

Yes, under the federal tip credit — but strict recordkeeping and notice requirements apply. Errors in tip credit calculations are among the most common FLSA violations in the restaurant industry.

You may owe back wages, liquidated damages equal to the back wages owed, and the employee's attorney fees. The Department of Labor can investigate going back two to three years — and three years if the violation was willful.