Wage, Hour & Classification FAQs

Exempt versus nonexempt, overtime calculations, contractor classification, and the FLSA questions Texas employers get wrong most often.

Last updated: July 03, 2026 • 20 answers in this category

• Can a Texas company train and supervise a contractor like an employee?
• Do bonuses or commissions affect overtime calculations?
• Does paying a salary automatically make an employee exempt from overtime?
• Does the FLSA apply to Texas nonprofits?
• How do Texas employers decide whether an employee is exempt or nonexempt?
• How is FLSA overtime calculated for Texas employees?
• How often should Texas employers audit exempt and nonexempt classifications?
• How should a Texas business onboard a 1099 contractor?
• How should a Texas employer prepare for a Department of Labor or payroll audit?
• What are the HR risks of misclassifying a worker as a contractor?
• What documents should be collected from independent contractors?
• What does FLSA exempt mean for a Texas employer?
• What final pay issues should employers handle after a resignation or termination?
• What is the difference between a 1099 contractor and an employee in Texas?
• What job duties should be reviewed before classifying a role as exempt?
• What payroll records should Texas employers keep to defend overtime decisions?
• What should employers do if they discover past overtime underpayments?
• When do Texas nonprofits need to pay overtime?
• When must a Texas employer pay time-and-a-half under the FLSA?
• When should a Texas business review 1099 contractor classifications?

Curated and reviewed by Dr. Thomas W. Faulkner, DBA, MBA, MSML, SPHR, LSSBB, principal consultant at Faulkner HR Solutions.