Texas employment law overview

Texas generally follows federal law with respect to antidiscrimination, minimum wage, child labor and leave laws, but provides employees with broader rights with respect to topics such as health care continuation coverage and emergency evacuation leave. 

Select Texas employment requirements are summarized below to help an employer understand the range of employment laws affecting the employer-employee relationship in the state. An employer must comply with federal, state, and local law. Where there is overlap, complying with the law that offers the greatest rights or benefits to the employee will generally apply. 

Equal Employment Opportunity (EEO) and worker protections 

Texas employers may be required to comply with requirements related to EEO and worker protections.   

Fair employment practices

Texas law regarding discrimination in employment essentially mirrors federal law. The Texas Commission on Human Rights Act (TCHRA) applies to private employers with 15 or more employees. Protected characteristics include: 

• Race; 
• Color; 
• National origin; 
• Religion; 
• Sex; 
• Age (age 40 or older); 
• Disability; and 
• Genetic information. 

However, the state’s law prohibiting sexual harassment applies to all employers with one or more employees. The law imposes a duty on employers to take immediate and appropriate corrective action when an employee experiences sexual harassment and the employer knows or should have known the harassment is occurring. 

The TCHRA also prohibits an employer from retaliating against employees for: 

• Opposing discriminatory or otherwise unlawful employment practices; 
• Filing a charge or complaint; or 
• Testifying or otherwise participating in an investigation, proceeding or hearing. 

Equal pay

Texas does not have a standalone equal pay law applicable to private employers.  However, the TCHRA prohibits discrimination, including in compensation, on the basis of any protected characteristic. 

Pay transparency

Texas does not have a pay transparency law applicable to private employers. 

Salary history inquiry restrictions

Texas does not restrict an employer from inquiring into or relying upon an applicant’s salary history. 

Employee wage disclosure rights

Texas does not have a wage disclosure law applicable to private employers. 

Pregnancy accommodation

Texas does not have requirements for private employers related to pregnancy accommodation. 

Breastfeeding breaks

Texas law allows a mother to breastfeed or express breast milk in any location where the mother’s presence is otherwise authorized. Although not explicitly stated, this law applies to all places of accommodation including workplaces. 

Access to personnel files

Texas law does not require private employers to provide employees with access to their personnel files. 

Whistleblower protections

Texas does not have a whistleblower law applicable to private employers. 

Scheduling 

Texas does not have a scheduling law applicable to private employers. 

Recruiting and hiring 

Texas employers may be required to comply with requirements related to recruiting and hiring.   

Credit checks

Texas does not have requirements for private employers related to credit checks. 

Ban the Box and Fair Chance 

Texas does not have a state ban-the-box or fair chance law applicable to private employers. 

E-Verify 

Contractors and any subcontractors of the Railroad Commission are required to participate in the E-Verify program to verify employee information. They must continue to participate in the program during the term of the contract 

Wage and hour 

Texas employers may be required to comply with certain wage and hour requirements.   

Minimum wage

Texas adopts the federal minimum wage rate by reference. The requirements for using the tip credit vary slightly. 

Overtime 

Texas does not have a state overtime law applicable to private employers. 

Meal and rest breaks

Texas does not have requirements for private employers related to meal and rest breaks. 

Child labor

Child labor laws in Texas restrict the occupations in which minors may be employed and the number of hours and times during which they may work. 

Texas follows federal law in regard to prohibited and permitted occupations for minors, with special rules for solicitations and sales, sexually oriented businesses and driving. 

Minors who are 14 or 15 years old may not work: 

• More than eight hours in one day; 
• More than 48 hours in one week; 
• Between 10:00 p.m. and 5:00 a.m. on a day that is followed by a school day, including summer school, if applicable; and 
• Between midnight and 5:00 a.m. on a day that is not followed by a school day, including when school is recessed for the summer. 

Minors may be asked to supply a certificate of age. 

Pay and benefits 

Texas employers may be required to follow certain requirements with respect to employee pay and benefits.   

Wage payment methods

An employer must pay wages in cash, or with checks that are negotiable for cash on demand at full face value. Employees may agree in writing to receive part or all of their wages in kind or in another form. 

An employer may impose mandatory direct deposit if it provides employees with at least 60 days’ written notice and obtains from each employee the banking information needed to implement electronic funds transfer. 

An employer may pay an employee using paycards if the employee agrees to that method of wage payment in writing and the employer’s paycard program complies with certain additional requirements. 

Pay frequency and lag time

Exempt employees must be paid at least once per month, and nonexempt employees must be paid at least twice per month. To the extent possible, an employer should spread out bimonthly payments over an equal number of days (e.g., on the first and 15th of each month). 

An employer must designate paydays consistent with state law. If, however, an employer does not designate paydays, paydays will default to the first and 15th of each month. If an employee is absent on payday, he or she must be paid on demand. 

Pay deductions

Under state law, wages may be withheld only when the employer: 

• Is required to do so by state or federal law (e.g., IRS withholding); 
• Is ordered to do so by a court (e.g., child support payments); or 
• Has the employee’s written authorization for the deduction and, then, only for a lawful purpose (e.g., for health or retirement benefits, uniforms, cash shortages or damage or breakage to property). 

Written employee authorizations must meet certain requirements. 

Pay statements

At the end of each pay period, an employer must give each employee a written earnings statement covering the pay period that contains the following information: 

• Employee’s name; 
• Pay rate; 
• Total pay earned for the pay period; 
• Deductions made and purpose of the deductions; 
• Net pay after deductions are made; and 
• Total number of hours worked (if pay is based on hours worked) or units produced (if pay is based on a piece rate). 

Wage theft

Texas does not have a wage theft law applicable to private employers. 

Health care continuation

Texas group health plans issued to employers generally require that continuation coverage be extended for nine months to individuals not covered by the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) (i.e., employed by an employer with fewer than 20 employees) and for an additional six months following COBRA coverage to individuals covered by federal COBRA. Dependent coverage may be extended for up to three years under certain circumstances. 

Temporary disability insurance

Texas does not have requirements for private employers related to temporary disability insurance. 

Time off and leaves of absence 

Texas employers may be required to follow certain requirements with respect to time off and leaves of absence.   

Family and medical leave

Texas does not have a state family and medical leave law applicable to private employers. 

Paid sick leave

Texas does not have a state paid sick leave law applicable to private employers. 

Other time off requirements

Texas has laws related to time off and leaves of absence, including but not limited to:

• Jury duty leave; 
• Court attendance leave; 
• Military leave; 
• Emergency evacuation leave; 
• Voting leave; and 
• Political leave. 

Health and safety 

Texas employers may be required to follow certain requirements with respect to employee health and safety.   

Occupational safety and health

Private sector employers in Texas fall under the jurisdiction of federal OSHA for compliance and enforcement and must follow the appropriate Code of Federal Regulations that applies to their industry and work practices.

Drug and alcohol testing

Employers in Texas may conduct drug and alcohol testing of employees or job applicants. There is no comprehensive state law that mandates or restricts how an employer may conduct a testing program.  

Employers in the state may establish their own drug and alcohol testing policies and require employees and job applicants to submit to such tests as long as the testing program complies with the ADA, the Texas Commission on Human Rights Act, applicable collective bargaining agreements and other laws that protect workers from discrimination or violations of privacy. 

Smoke-free workplace

Texas law prohibits smoking in certain public places such as elevators, enclosed theaters or movie houses, hospitals, and transit system or intrastate buses. 

While there is not a state law that specifically prohibits smoking in enclosed workplaces, an employer may choose to prohibit smoking in the workplace.  

Weapons in the workplace

An employer has the right to prohibit individuals with a valid license from carrying a handgun on its premises. The employer must communicate orally or in writing that entering or remaining on the property with a handgun is forbidden. Written communication may be provided in the form of a card or other document, or a clear and conspicuous sign. The law includes specific language and signage requirements. 

Safe driving practices

Texas prohibits the use of a wireless communication device to read, write or send an electronic message while operating a motor vehicle unless the vehicle is stopped. 

Organizational exit 

Texas employers may be required to follow certain requirements when employees exit the organization.   

Final pay

An employee who quits must be paid in full by the next regularly scheduled payday. 

An employee who is terminated must be paid in full within six days of the termination date. 

Accrued vacation, sick leave and paid time off (PTO) must be paid upon separation from employment only if a written agreement or written employer policy specifically provides for payment of such benefits. 

Mass layoffs

Texas does not have its own version of the federal WARN Act. 

AI in employment 

The Texas Responsible AI Governance Act prohibits the development or use of an artificial intelligence system with the intent to discriminate against a protected class in violation of federal or state law.