Bill > HB5404

This bill modifies the overtime compensation rules for certain state employees covered by the Fair Labor Standards Act (FLSA), specifically those who are not legislative employees. The bill removes language that previously allowed agencies to require compensatory time off and eliminates the agency's discretion in choosing between compensatory time and overtime pay. Under the new provisions, when an employee works more than 40 hours in a workweek, they will now have two options: either receive compensatory time off at a rate of 1.5 hours of time off for each hour of overtime worked, or receive monetary compensation at a rate of 1.5 times their regular pay rate. The bill emphasizes that federal law will take precedence if there are any conflicting provisions. The changes will take effect on September 1, 2025, providing state agencies and employees with advance notice of the new overtime compensation guidelines.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5404