Texas, like all U.S. states, has numerous labor laws that provide protections and standards for both employees and employers. While Texas is generally considered an “employment-at-will” state, meaning that employment can be terminated by either party at any time for any reason, there are still many important labor regulations that apply.
Minimum Wage
Texas follows the federal minimum wage set by the Fair Labor Standards Act (FLSA). As of 2023, the minimum wage in Texas is $7.25 per hour for most workers. This applies to most employees, including full-time, part-time, seasonal, and temporary workers. Here are some key facts about minimum wage in Texas:
- The federal minimum wage has been $7.25 per hour since July 2009.
- Some cities in Texas have passed local ordinances setting a higher minimum wage, but the state minimum remains $7.25.
- Tipped employees may be paid a lower minimum cash wage of $2.13 per hour as long as their tips make up the difference to meet the full minimum wage.
- There are some exemptions for younger workers, certain seasonal jobs, and small businesses with revenue under $500,000.
Overtime Pay
Under the FLSA, most hourly employees in Texas are entitled to overtime pay of 1.5 times their regular rate of pay for any hours worked over 40 in a workweek. Here are some Texas overtime pay requirements:
- Overtime applies to employees who are not exempt, such as hourly workers or non-managerial staff.
- Salaried employees may be exempt from overtime if they meet salary and job duty tests.
- Overtime is based on actual hours worked. Paid leave, vacation, or holidays do not count toward overtime hours.
- Employers may define the workweek as any consecutive 168-hour period.
Meal and Rest Breaks
Texas has no state laws requiring rest breaks or meal breaks for adult employees. However, there are some federal standards that may apply:
- No federal law requires rest breaks, but short 5-10 minute breaks are common practice.
- Meal breaks of at least 30 minutes must be provided for shifts over 6 hours under the FLSA.
- During meal breaks, employees must be free from all job duties.
- Employers who choose to provide coffee or snack breaks typically must follow FLSA standards.
Child Labor
Texas has specific regulations regarding working hours and occupations for minor employees under age 18. Some key child labor laws include:
- Minimum age of 14 for most non-farm jobs during school hours
- Minimum age of 16 for most jobs during school hours
- Work permits required for minors under age 17
- Limits on hours worked for 14-15 year olds
- Hazardous occupation restrictions for all minors
Pay and Record Keeping
In addition to minimum wage and overtime, Texas employers must follow other pay and record keeping requirements:
- Pay periods must not exceed 31 days and wages must be paid within that period
- Employers must notify employees about pay rate, policies, and employment status
- Accurate payroll records must be kept for at least 4 years
- Employees must be given access to their own pay records
- Employers cannot make unlawful pay deductions that reduce wages below minimum wage
Workplace Safety
Texas has adopted federal OSHA standards for most private sector workplaces. Employers must provide a safe working environment free from recognized hazards. Rules include:
- Required worker training, safety policies, protective equipment, and injury reporting
- Right for workers to report safety issues without retaliation
- Inspections and investigations conducted by Texas OSHA
- Penalties and citations for violations, especially in cases of workplace fatalities or injuries
Discrimination and Harassment Laws
Texas employment laws prohibit discrimination and harassment in the workplace based on protected characteristics. Federal and Texas laws protect workers from discrimination based on:
- Race, color, national origin
- Sex, pregnancy
- Religion
- Age (40 and over)
- Disability
- Genetic information
Texas law also specifically prohibits discrimination based on veteran status. Discrimination can include hiring, firing, promotions, harassment, wages, benefits, or any other term or condition of employment.
Leave and Benefits
Texas employers must provide benefits and leave in compliance with federal law. Some key regulations include:
- Family and Medical Leave Act (FMLA) – 12 weeks of job-protected unpaid leave for qualifying conditions
- Pregnancy Disability Leave – Reasonable accommodation for pregnancy-related conditions
- Military Leave – Time off for military service and families of service members
- Jury Duty Leave – Allowing time off for employees called to jury duty
- Voting Leave – Allowing paid time off to vote in elections
- Workers’ Compensation – Medical and wage benefits for job-related injuries or illnesses
Workplace Postings
Texas employers are required to display certain employment law notices in a common area accessible to all employees. Required postings may include:
- Minimum Wage – Federal and any applicable local
- Equal Employment Opportunity
- Safety and Health Protection on the Job
- Employee Rights on Government Contracts
- Employee Rights under the NLRA (union notification)
Postings inform employees about key labor laws and employee rights under each notice. Employers may face fines for failing to comply with posting requirements.
Penalties for Violations
Texas employers who violate applicable employment laws may face the following consequences:
- Fines and civil penalties imposed by Texas and U.S. Department of Labor
- Back pay, damages, reinstatement ordered by court for wronged employees
- Triple damages for willful violations of minimum wage or overtime laws
- Attorney’s fees, court costs, and litigation expenses
- Suspension or revocation of business licenses
- Cease and desist orders compelling compliance
- Employee lawsuits for compensatory and punitive damages
Key Texas Labor Laws
Some of the most important employment laws that Texas employers must follow include:
| Law | Overview |
|---|---|
| Fair Labor Standards Act | Federal law establishing minimum wage, overtime pay, recordkeeping, and child labor standards. |
| Texas Minimum Wage Act | Adopts the federal minimum wage rate set under the FLSA. |
| Texas Payday Law | Requires timely payment of wages no later than the 31st day after the end of the pay period. |
| Texas Unemployment Compensation Act | Provides temporary income for eligible workers who become unemployed through no fault of their own. |
| Texas Workers’ Compensation Law | Provides benefits and medical care to employees injured on the job. |
| Title VII of Civil Rights Act | Prohibits employment discrimination based on race, color, religion, sex or national origin. |
Conclusion
In summary, despite being an employment-at-will state, Texas still has many significant labor regulations protecting workers’ rights. All employers in Texas must comply with federal laws related to minimum wage, overtime, discrimination, leave, safety, child labor, and recordkeeping. The state also provides additional worker protections through laws like the Texas Payday Law, Texas Unemployment Compensation Act, and Texas Workers’ Compensation. Understanding the range of Texas employment laws applicable to your business is crucial for maintaining compliance and avoiding costly penalties or litigation.