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Understanding Texas Employment and Labor Laws

PEO

Legal & compliance

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Author

Michał Kowalewski

Published

September 04, 2024

Last Update

February 03, 2025

Table of Contents

Federal vs. state law differences

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

Wages and hours in Texas

Leaves of absence in Texas

Workplace safety in Texas

Discrimination and harassment laws in Texas

Unions in Texas

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Key takeaways
  1. Texas follows the federal minimum wage rate, with no state-specific minimum wage laws currently in place.
  2. Texas provides various protections against workplace discrimination and harassment under both state and federal laws.
  3. Employers and employees must be aware of Texas-specific requirements for overtime pay, employee classification, and workplace safety to ensure compliance.

In the US, labor and employment laws establish the framework for fair and equitable workplaces. They outline the rights and responsibilities of employers, employees, and labor unions, covering areas such as wages, working conditions, health and safety, and termination. Since these laws can vary by state, it's crucial for both employers and employees to know their local requirements. In this article, we’ll cover the key laws in Texas.

Federal vs. state law differences

While federal laws provide a baseline across the United States, Texas has its own set of labor regulations that align closely with federal standards. For example, Texas does not have a minimum wage law, relying on the federal minimum wage instead.

However, Texas has introduced some of its own regulations and guidelines. It is important for both employers and employees to understand how these state-specific regulations may complement or differ from federal laws to maintain compliance.

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

Employment laws typically cover the rights and responsibilities of employers, including wage standards, discrimination protections, and leave policies. Labor laws, on the other hand, focus on the relationship between employers and collective entities like unions, covering collective bargaining, workers' rights to organize, and union management.

Wages and hours in Texas

Texas’s wage and hour laws incorporate both state-specific requirements and federal guidelines to ensure fair compensation for workers.

Minimum wage in Texas

As of now, Texas follows the federal minimum wage rate, which is $7.25 per hour. There are no current plans to increase the state minimum wage independently of federal standards.

Note that a lot of major Texan cities have introduced their own minimum rate. For example, Austin increased its lower limit to $21.63 per hour in 2024 and Housten is currently set at $15 per hour.

Overtime pay in Texas

Under Texas law, which aligns with the federal Fair Labor Standards Act (FLSA), non-exempt employees must be paid overtime at a rate of one and a half times their regular pay for hours worked over 40 in a work week. This rule ensures that employees receive fair compensation for working additional hours.

Pay transparency in Texas

Texas does not have specific state laws regarding pay transparency. However, it recently passed a bill giving employees the right to discuss wages and other terms of employment. Employers are encouraged to foster a transparent workplace to promote trust and equity.

Breaks and rest periods in Texas

Employers in Texas aren’t required to provide 30-minute breaks as in some states. However, if employers choose to provide short breaks (typically lasting about 5 to 20 minutes), these breaks must be counted as compensable work hours under the PayDay Law.

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Leaves of absence in Texas

Pregnancy disability leave

Under federal and state law, Texas employers must provide reasonable accommodations for disability and pregnancy-related conditions. This may include modifications to work duties, additional breaks, or temporary reassignment, ensuring that expecting and new mothers have job protection.

Paid sick leave

Texas does not have a statewide mandate for paid sick leave. However, some cities within Texas, like Austin and San Antonio, have attempted to pass local ordinances requiring paid sick leave, though these have faced legal challenges.

Employers should be aware of local regulations and their own policies regarding sick leave. If you write such policies into your contract, you must follow them or risk penalties.

Jury duty in Texas

Employers in Texas must allow employees to take time off for jury duty. State law protects employees from being terminated or penalized for serving on a jury, although employers are not required to pay employees for this time.

Workplace safety in Texas

Texas follows federal OSHA standards to ensure workplace safety. The Texas Department of Insurance, Division of Workers’ Compensation (TWC), oversees state-specific safety programs and regulations, helping employers maintain safe working environments and comply with safety training and reporting requirements.

For example, the TWC enforced a rule that all employers must display posters with the health and safety rules in both English and Spanish.

Discrimination and harassment laws in Texas

Texas enforces anti-discrimination laws under the Texas Labor Code, which provides protections against discrimination based on race, color, sex, national origin, disability, religion, age, and more. Employers must have policies to prevent and address discrimination and harassment in the workplace.

Unions in Texas

Texas is a "right-to-work" state, meaning employees cannot be required to join a union or pay union dues as a condition of employment. However, employees retain the right to organize and engage in collective bargaining if they choose.

FAQs

Currently, the minimum wage in Texas is $7.25 per hour, which aligns with the federal minimum wage. Texas does not have a state-specific minimum wage law.

Texas follows the federal Family and Medical Leave Act (FMLA) guidelines, which allow eligible employees to take unpaid leave for certain family and medical reasons.

Texas law prohibits discrimination based on various protected characteristics, including race, gender, disability, and more. Employers are required to have policies that prevent and address workplace discrimination and harassment.

Employees can file complaints regarding labor law violations with the TWC or the Equal Employment Opportunity Commission (EEOC), depending on the issue.

While Texas does not mandate meal or rest breaks by state law, employers are encouraged to provide breaks for health and safety, following federal guidelines for compensated breaks.

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Keeping up to date with the latest state-specific labor and employment laws is a crucial but resource-intensive task for HR and payroll teams. With Deel PEO, you can offload HR and compliance risks and focus on growing your business. Deel’s services include:

  • Expert payroll administration
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Book a demo to explore Deel’s platform and speak with an expert.

Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.

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About the author

Michał Kowalewski a writer and content manager with 7+ years of experience in digital marketing. He spent most of his professional career working in startups and tech industry. He's a big proponent of remote work considering it not just a professional preference but a lifestyle that enhances productivity and fosters a flexible work environment. He enjoys tackling topics of venture capital, equity, and startup finance.

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