Texas HB5404 amends overtime compensation rules for certain state employees under the federal Fair Labor Standards Act.

Texas HB5404 amends the Education Code to clarify overtime compensation for state employees subject to the federal Fair Labor Standards Act. These employees, excluding those of the legislature or legislative agencies, are entitled to overtime pay or compensatory time off at a rate of 1.5 times their regular pay for hours worked over 40 in a week. Federal law takes precedence if it differs from state rules. The changes take effect September 1, 2025.

Texas HB5404 amends overtime compensation rules for certain state employees under the federal Fair Labor Standards Act.

Texas HB5404 amends the Education Code to clarify overtime compensation for state employees subject to the federal Fair Labor Standards Act. These employees, excluding those of the legislature or legislative agencies, are entitled to overtime pay or compensatory time off at a rate of 1.5 times their regular pay for hours worked over 40 in a week. Federal law takes precedence if it differs from state rules. The changes take effect September 1, 2025.