Employment and labor laws in Texas [Updated 2024]

Employment and labor laws offer numerous protections to employees, including safety in the workplace, equal hiring opportunities, the right to unionize, and much more. These regulations are typically a blend of federal and state regulations, varying from state to state. 

Texas is known for its lax labor and employment laws, with little variation from federal regulations. If you’re hiring employees there, it’s crucial to understand and adhere to the applicable laws to ensure employee protection and avoid potential legal consequences.

From health insurance to minimum wage rates, keeping track of Texas's constantly evolving employment and labor laws can be overwhelming.

Take the guesswork out of managing your employees in Texas. Use Rippling’s Professional Employer Organization service to manage tax registration and hiring efficiently when expanding your business across states.

Employment vs. labor law: What’s the difference?

Although employment and labor laws have some similarities, they are distinct in terms of their legal implications. The primary difference lies in the parties involved. Employment law has to do with the relationship between employers and employees. In contrast, labor law deals with employers and labor groups (i.e., unions). 

Here’s a quick breakdown:

• Employment law focuses on workplace discrimination, unsafe working conditions, wage disputes, overtime, hiring practices, harassment, and retaliation. 
• Labor law pertains to union membership, dues, strikes and lockouts, and collective bargaining.

Wages and hours in Texas

When a company pays its employees in Texas—whether public or private— it must comply with federal and state-specific laws to protect employees’ rights. The Texas Workforce Commission (TWC) supervises the wages and hours program in Texas, including the Texas Payday Law, the Texas Child Labor Law, and the Texas Minimum Wage Act.

Minimum wage in Texas

As of 2009, most employees in Texas are eligible to receive the federal minimum wage rate of $7.25 per hour as per the Fair Labor Standards Act (FLSA).

For tipped employees, the minimum wage works differently. The hourly wage is $2.13 per hour, with tips making up the difference. The employer must make up the difference if the tips plus $2.13 are less than the federal minimum wage of $7.25. 

Employees younger than 20 years old can be paid an apprentice wage of $4.25 per hour for the first 90 days of their employment or until they reach 20 years of age, per certificates issued by the US Department of Labor (DOL).

Rippling can flag minimum wage violations automatically based on state and federal regulations to ensure compliance in all states where you do business, including Texas.

Overtime pay in Texas

Texas doesn’t have state-specific overtime laws. In the state, the standards for overtime pay adhere to the guidelines established by the FLSA, including recordkeeping. As a general rule, if non-exempt employees work beyond 40 hours in a workweek, they are entitled to compensation at a rate of at least one and a half times their regular rate of pay.

Rippling’s payroll software automatically adjusts pay rates to account for overtime hours, ensuring you comply with federal overtime pay requirements.

Pay transparency in Texas

Pay transparency laws protect more than 25% of the US workforce. These laws seek to address pay inequality resulting from race, gender, and age.

There are no pay transparency laws in effect in Texas. While there have been several bills to ban employees from asking about salary history, none of them have passed.

With Rippling, compensation bands are enforced, and any out-of-band adjustments are automatically flagged. This allows you to approve or deny cases as needed, ensuring fairness and accuracy in the compensation process.

Breaks and rest periods in Texas

In Texas, no mandatory meal breaks or rest periods are required by the state. But, in Austin, an ordinance was passed in 2010 that mandates employers to give construction workers a 10-minute break for every four hours of work. The ordinance requires employers to display a sign in a noticeable spot explaining the rest break requirements in English and Spanish.

Employers also need to provide reasonable accommodations for employees who express breast milk. This means giving them a private room to pump that isn’t a bathroom and enough break time.

Leaves of absence in Texas

Texas leave laws are limited. Most regulations regarding leave closely resemble federal guidelines, as Texas has few of its own. Here’s what you need to know.

Vacation time

Texas doesn't require private employers to offer paid vacation, but they must follow their own employment contracts if they do.

Family and medical leave

Although Texas labor laws don’t mandate employers to offer family and medical leave to their employees, they must follow the Family and Medical Leave Act. According to the FMLA, employers with over 50 workers must permit their staff members to take up to 12 weeks of unpaid leave yearly in case of illness, a significant life occurrence like childbirth or adoption, or when caring for a sick or injured relative.

Military leave

Under the federal Uniformed Services Employment and Reemployment Rights Act (USERRA), employees called to active duty or authorized training in the military are entitled to a leave of absence from their jobs. 

Employers with more than 15+ employees must grant eligible employees unpaid military leave. Once employees return from military service, they must be reinstated to their previous positions with the same seniority, pay, and benefits.

Jury duty leave

In Texas, private employees aren’t mandated to receive paid leave for jury duty. However, it is illegal for an employer to fire or take any hostile action against an employee due to their jury duty service. If the employee provides reasonable notice of their absence, they can’t be subjected to adverse employment consequences.

Voting leave

Employers in Texas must offer paid time off for their workers to vote during elections unless the employee has at least two consecutive hours available to vote outside of their working hours. It’s illegal for employers to penalize or threaten employees with reduced wages or benefits for taking time off to vote.

Holiday leave

Private employers aren’t required to offer paid or unpaid holiday leave. Employees may be required to work on any public holiday and aren’t entitled to any premium pay rate unless the employment contract says differently. 

Pregnancy disability leave in Texas

Texas doesn’t have state laws for pregnancy disability, so it falls under the FMLA. However, the FMLA only applies to employers with 50+ employees.

Paid sick leave in Texas

Employers in Texas aren’t required to provide paid sick leave, but they may choose to offer paid sick leave as part of an employee benefits package.

However, cities in Texas like Austin, Dallas, and San Antonio have enacted sick leave ordinances. These ordinances require employers to provide their employees with paid sick leave. However, the future of these ordinances is uncertain as court rulings have kept them from being enforced.

With Rippling, you can automate and customize your leave policies—from vacation to sick days—and gain complete insight into employee usage.

Workplace safety in Texas

Employers must provide a safe workplace for all workers, including providing safe equipment, instructing employees on safety plans, and implementing company-wide safety policies. The Texas Occupational Safety and Health Act (TOSHA) ensures workplace safety and mirrors regulations established by the federal Occupational Safety and Health Administration (OSHA). 

The Texas Hazard Communication Act provides even more protection—a state law that mandates employers to provide their workers with information and training on hazardous chemicals they may encounter at work.

Every employer in Texas must have a written Safety, Health, and Injury & Illness Prevention Plan (IIPP) manual, plan, and program in place, although it's not strictly required by federal OSHA.

Rippling PEO offers a pay-as-you-go workers’ comp plan without upfront payment for the entire year, available in Texas and other US states.

Discrimination and harassment laws in Texas

Most of Texas's legal protections against discrimination and harassment are found in federal civil rights laws. These laws include the Civil Rights Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the National Labor Relations Act (NLRA).

The Texas Commission on Human Rights Act, found in the Texas Labor Code, aims to prevent workplace discrimination and harassment based on various factors: 

• Race
• Color 
• Disability 
• Religion
• Sex (including pregnancy, gender identity, and sexual orientation)
• National origin
• Age 
• Genetic information 

The Civil Rights Division of the Texas Workforce Commission is responsible for regulating and enforcing the Act, similar to how the Equal Employment Opportunity Commission (EEOC) enforces federal discrimination laws. Employers must comply with anti-discrimination laws throughout the entire employment relationship, including hiring, payment, promotions, termination, and more.

Other anti-discrimination laws enacted in Texas include:

• Emergency Evacuation Employment Discrimination. Under the Texas Labor Code, this regulation outlaws firing or discriminating against employees under an emergency evacuation order. The law on employment discrimination during emergency evacuations applies to all employees except those in emergency services.
• The CROWN Act. The CROWN Act prohibits employers, labor unions, and employment agencies from implementing dress or grooming policies that discriminate against hair textures or protective hairstyles historically associated with a particular race.

Harassment can take different forms, such as verbal, physical, or visual actions, and can happen at work or outside. In Texas, it's against the law for anyone to sexually harass you at work, regardless of the company's size. If you report any sexual harassment or participate in an investigation, the law protects you from being discriminated against.

Although not mandated in Texas, it’s recommended that employers provide sexual harassment training for their employees in every state. To ensure compliance with state requirements, Rippling's Learning Management System includes essential sexual harassment training courses tailored to the location of each employee.

Employers are responsible not only for their behavior but also for the actions and words of their employees, even if they are unaware of them.

Unions in Texas

Workers can join a labor union to improve their working conditions. This involves collective bargaining, where they negotiate for better wages, vacation time, and benefits. The National Labor Relations Act (NLRA) guarantees workers the ability to engage in collective bargaining, including:

• Organize or join a union to negotiate with their employer.
• Bargain collectively as a union by choosing employee reps to set work conditions. 
• Share employment terms and conditions with co-workers.
• File complaints to improve working conditions with their employer or the government and seek help from a union.
• Strike or picket, depending on the reason.
• Reject joining a union.

Texas is a right-to-work state, meaning an employer can’t refuse or place conditions on an employee's right to work based on their membership or non-membership in a labor union. Also, the employer can’t prohibit the employee's right to organize or bargain through a labor organization collectively.

FAQs about Texas labor and employment laws

Are independent contractors covered under Texas employment laws?

Texas employment laws apply only to employees, not independent contractors. A misclassified contractor can result in serious legal repercussions for employers. Use our analyzer tool to ensure you’re classifying your workers correctly.

Does at-will employment exist in Texas?

Yes, Texas is an at-will employment state where either employers or employees can end the employment relationship at any point without cause or notice.

What privacy rights do employees have in Texas?

Although federal law provides privacy protections for electronic communications, some exceptions allow employers to monitor them. In Texas, employers are generally permitted to monitor their employees' internet and email use.

Are background checks legal in Texas?

It’s legal for employers in Texas to conduct background checks. No state law prevents them from asking about a candidate's criminal history on a job application or conducting a criminal background check during the hiring process.

However, some Texas cities and counties have "ban the box" policies, so be mindful as you hire locally. 

Are whistleblowers protected in Texas?

The Texas Whistleblower Act safeguards employees working for public employers who report legal violations by their employer to an appropriate law enforcement authority. The act doesn’t extend to private sector employees. 

Is workers’ compensation coverage required in Texas?

Workers’ compensation is only required in certain cases. In Texas, employers with five or more employees can purchase workers' compensation insurance. While it isn’t mandatory for private employers, those who work with the government must provide coverage. It's worth noting that those who opt out of coverage aren’t protected from most lawsuits filed by injured employees.

Are there required healthcare benefits in Texas?

Employers who have 50+ full-time or full-time equivalent (FTE) employees are mandated by federal law to offer healthcare benefits.

Are Texas employers required to provide bereavement leave?

In Texas, employers aren’t required to offer their employees bereavement leave.

What employee protections are available in Texas if layoffs occur?

According to the Worker Adjustment and Retraining Notification (WARN) Act, employers with 100+ employees must provide advance notice of 60 days for mass layoffs or plant closures. In Texas, you can receive your final paycheck immediately after your employment ends.

The Texas Workforce Commission manages unemployment benefits for employees who lose their jobs (and aren't at fault). You can apply for benefits and maintain eligibility online.

Disclaimer: Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.