Does a company have to pay OT even if they do not take out taxes?

Your question is loaded with lots of possibile issues.  Only true "employees" are entitled to overtime. That said, too many employers try to cheat the system (trying to get out of the employer's share of employment taxes, overtime, workers compensation, benefits) by wrongly classifying employees as independent contractors.  I hear the term "contract employee" or "1099 employee" all the time.  There is no such thing.  You are most likely an employee if you consistently work for the same employer, you are paid by the day or by the hour, the employer provides your tools and materials, and your employer supervises and controls the details of your work.  You are likely an independent contractor if you provide your own tools and material, if you are free to do the work when and how you want, if you are free to sub-contract your work or hire assistants, if you are free to work for other companies, if you are paid by the job and if you have a risk of loss in the work you are doing. If you are treated as an employee, but paid as an independent contractor, you (and everyone you work with who is simialrly treated) may have a claim against your employer for any unpaid overtime you worked in the last 3 years.  You can contact a private attorney with Labor & Employment Experience or the US Department of Labor - Wage and Hour Division.  There are DOL offices in all of the major Texas cities.  In DFW that office is in Arlington. Good luck.