Is Texas an “at-will” employment state?

According to Texas law, yes. Texas generally follows the employment-at-will doctrine. This means that either the employer or the employee may generally terminate the employment relationship at any time, for any reason or no reason, with or without notice, unless: There is an employment contract stating otherwise The termination violates law (e.g., discrimination, retaliation) Public policy exceptions apply However, there are many exceptions to at-will employment. Consult an employment attorney if you have specific questions about termination.

Does my employer have workers’ compensation insurance?

Texas is unique in that workers’ compensation insurance is generally voluntary for private employers. To verify whether your employer has coverage: Check TDI-DWC Certificate of Coverage database: https://www.tdi.texas.gov/wc/ Ask your employer directly Look for workplace postings If your employer is a “subscriber” (has workers’ comp insurance): You may be entitled to workers’ comp benefits if injured on the job Benefits are provided regardless of fault Employer generally has immunity from lawsuits If your employer is a “non-subscriber” (no workers’ comp insurance): You are not covered by workers’ compensation You may be able to sue employer for negligence if injured Employer cannot use traditional legal defenses

What should I do if I’m injured at work?

Take these steps: Report injury to supervisor/employer immediately (written notice recommended) Seek medical treatment If employer is subscriber: File workers’ compensation claim with TDI-DWC If employer is non-subscriber: Document everything and consider consulting personal injury attorney For workers’ compensation questions, contact TDI-DWC at 800-252-7031.

What types of discrimination are illegal in Texas?

Under federal law (Title VII, ADA, ADEA, etc.) and Texas law (TCHRA), it is generally illegal to discriminate based on: Race Color National origin Religion Sex (including pregnancy, sexual orientation, gender identity) Age (40 and older) Disability Genetic information Discrimination includes: Hiring and firing decisions Compensation and benefits Harassment Retaliation for complaining about discrimination To file a discrimination complaint: EEOC: 800-669-4000 or https://www.eeoc.gov/ TWC Civil Rights Division: 888-452-4778 Time limits apply (typically 180-300 days). Act promptly.

Do I have a legal right to work remotely?

Generally, no. There is typically no legal right to work remotely under Texas or federal law. Exceptions: If remote work is needed as a reasonable accommodation for a disability under the ADA If you have an employment contract guaranteeing remote work In some limited circumstances Remote work is typically at employer’s discretion. Employers may: Deny remote work requests Require employees to work on-site Terminate remote work arrangements If you need remote work as a disability accommodation, engage in the interactive process with your employer and consult an employment attorney if needed.

Can my employer monitor me while I work from home?

Generally, yes. Texas law generally allows employers to monitor employee work activities, including: Computer usage Email and internet activity Work hours Video surveillance (with some limitations) GPS tracking of company devices Best practices for employers include: Clear written policies about monitoring Notice to employees Reasonable monitoring related to legitimate business purposes If you have concerns about privacy, consult an attorney. Certain types of monitoring (e.g., in private areas like bathrooms) may be illegal.

Must my employer pay for my home internet and equipment?

No. Texas law does not specifically require employers to reimburse remote workers for equipment, internet, or phone costs. Under federal law (FLSA): Business expenses cannot reduce wages below minimum wage For most remote workers earning above minimum wage, reimbursement is not required by law Many employers voluntarily provide: Laptops and equipment Internet stipends Phone reimbursement Check your employer’s policies. If expenses would cause you to earn less than minimum wage, contact DOL at 866-487-9243.

I work remotely for an out-of-state company. Where do I pay taxes?

Generally: If you live in Texas and perform all work from Texas: You typically pay only federal tax (no Texas state tax, no other state tax) If you live in another state: You typically pay tax to your home state Exception – “Convenience of Employer” States: New York, Pennsylvania, Delaware, Connecticut, and Nebraska have special rules These states may tax you based on employer location even if you work remotely from elsewhere This is complex – consult a tax professional See Part B of this guide (Tax Information) for detailed scenarios. Consult a CPA or tax attorney for specific situations. Do not rely on general information for tax decisions

Can I deduct my home office expenses?

It depends on your employment status: W-2 Employees: NO. The Tax Cuts and Jobs Act of 2017 eliminated the home office deduction for W-2 employees through 2025. Self-Employed/Independent Contractors: YES, if you meet requirements: Regular and exclusive use of home space for business Home office is principal place of business Used in trade or business For details: IRS Publication 587 or consult a tax professional.

🇺🇸 TEXAS STATE LAW – 2026 UPDATE

Texas Remote Work Laws 2026

⚠️Informational only — not legal or tax advice.

Last Updated: December 2025
Applicable Period: 2026 tax year and current employment regulations
Key Characteristic: Employers with remote workers physically located in Texas

Click any item below to jump to the relevant section

Overview
Key Legal Framework
Employee Classification Standards in Texas
Minimum Wage Information for Texas
Overtime and Break Regulations in Texas
Paid Sick Leave in Texas
Workers' Compensation Overview for Texas
Other Leave Entitlements
Anti-Discrimination Laws in Texas
Data Privacy Considerations for Remote Work
Remote Work Considerations
Tax Information for Remote Workers
Resources
Frequently Asked Questions

Overview

Texas represents one of the most business-friendly states for remote work arrangements in the United States. Unlike worker-protective states such as California or New York, Texas follows federal minimum standards for most employment regulations while maintaining strong employer discretion through its at-will employment doctrine and right-to-work laws.

General Characteristics:

State minimum wage (2025-2026): $7.25/hour (follows federal minimum wage)
Paid sick leave: Not mandated by state law
State income tax: No state income tax
Meal/rest breaks: Not mandated by state law for adult employees
Overtime rules: Follows federal FLSA standards
Workers’ compensation: Optional for private employers (unique to Texas)

Sources:

Texas Workforce Commission: https://www.twc.texas.gov/
Texas Department of Insurance – Division of Workers’ Compensation: https://www.tdi.texas.gov/wc/

⚠️ Note: These are general starting points only. Specific applicability depends on many factors including employer size, industry, and individual circumstances. Federal laws may impose additional requirements beyond Texas state law. Consult official sources and legal counsel for guidance on specific situations.

Key Legal Framework

Official State Agency Information

The Texas Workforce Commission (TWC) is the primary state agency administering employment laws in Texas.

Contact Information:

Website: https://www.twc.texas.gov/
Main Phone: 512-463-2222
Toll-Free: 800-939-6631
Address: 101 E. 15th Street, Austin, TX 78778
Languages: English, Spanish (interpreter services available for other languages)
Employment Law Assistance: 800-832-9394 (Employer Commissioner’s Office employment law attorneys)

Specific Divisions:

Wage & Hour Program: https://www.twc.texas.gov/programs/wage-and-hour
Civil Rights Division: For discrimination complaints
Child Labor Law Enforcement

⚠️ Note: This agency can provide official interpretations of Texas employment law. For legal advice on how laws apply to your specific situation, consult a licensed attorney in Texas.

Texas Department of Insurance – Division of Workers’ Compensation (DWC)

For workers’ compensation-related matters (including non-subscriber reporting):

Website: https://www.tdi.texas.gov/wc/
Phone: 512-804-4000
Toll-Free: 800-252-7031
Address: 7551 Metro Center Drive, Suite 100, Austin, TX 78744

Major State Employment Statutes

The following statutes are commonly cited in employment matters. This is general information only and does not constitute legal interpretation.

1. Texas Labor Code – Title 2 (General Labor Regulations)

Statutory Citations:

Texas Payday Law: Texas Labor Code Chapter 61
Texas Minimum Wage Act: Texas Labor Code Chapter 62
Employment Discrimination: Texas Labor Code Chapter 21
Child Labor Law: Texas Labor Code Chapter 51

Official Source: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.2.htm

General Provisions (as stated in the statutes):

Texas Payday Law (Chapter 61):

Generally addresses requirements for payment of wages to employees
Provides that employees may file wage claims for unpaid wages or compensation
Sets forth timing requirements for wage payments
Establishes remedies and enforcement mechanisms

According to the Texas Workforce Commission, the Payday Law generally requires employers to pay employees in full, on time, and on scheduled paydays. Specific requirements depend on circumstances including payroll schedules and employment separation.

Texas Minimum Wage Act (Chapter 62):

Generally provides that Texas adopts the federal minimum wage rate
Contains provisions concerning tipped employees
Includes various exemptions from coverage
Provides civil remedies for violations

Texas currently follows the federal minimum wage of $7.25/hour (effective July 24, 2009).

Application to Remote Work: These provisions generally apply based on where work is physically performed. Texas laws typically cover work performed within Texas state boundaries. Specific applicability depends on multiple factors including employer location, employee work location, and other circumstances. Consult Texas Workforce Commission or legal counsel for guidance.

Sources:

Texas Workforce Commission – Wage and Hour: https://www.twc.texas.gov/programs/wage-and-hour
Texas Payday Law: https://www.twc.texas.gov/jobseekers/texas-payday-law
Texas Minimum Wage Law: https://www.twc.texas.gov/programs/wage-and-hour/texas-minimum-wage-law

2. Texas Workers’ Compensation Act

Statutory Citation: Texas Labor Code Title 5, Subtitle A Official Source: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.401.htm

General Overview:

Texas has a unique workers’ compensation system. According to the Texas Department of Insurance, Texas is the only state that does not require private employers to carry workers’ compensation insurance coverage. Employers may choose to:

Subscribe to workers’ compensation insurance (become a “subscriber”), OR
Opt out of the system (become a “non-subscriber”)

Key Characteristics:

Private employers can legally choose non-subscriber status regardless of company size or industry (with limited exceptions)
Government entities and certain contractors on public projects generally must carry coverage
Non-subscribers must file annual notices with the Texas Department of Insurance
Non-subscribers must notify employees of their lack of coverage
Non-subscribers face potential liability for workplace injury lawsuits

Implications for Employers:

Subscribers gain immunity from most employee lawsuits for workplace injuries
Non-subscribers may face negligence lawsuits with potentially higher damages
Each option involves different risks, costs, and legal obligations

Note: The choice between subscriber and non-subscriber status has significant legal and financial implications. Employers should consult legal counsel and insurance professionals when making this determination.

Source: Texas Department of Insurance – Division of Workers’ Compensation: https://www.tdi.texas.gov/wc/

3. Texas Commission on Human Rights Act

Statutory Citation: Texas Labor Code Chapter 21 Official Source: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm

General Overview:

According to Texas law, this statute generally prohibits employment discrimination based on:

Race
Color
Disability
Religion
Sex (including pregnancy)
National origin
Age (40 and older)

The Texas Workforce Commission’s Civil Rights Division enforces these protections.

Application: These protections generally apply to employers with 15 or more employees (some provisions apply to smaller employers). Specific coverage depends on employer size, nature of discrimination alleged, and other factors.

Source: Texas Workforce Commission – Civil Rights: https://www.twc.texas.gov/services/civil-rights

⚠️ Note: Federal anti-discrimination laws (Title VII, ADA, ADEA) also apply and may provide additional protections. Consult legal counsel for comprehensive discrimination law compliance.

4. Federal Laws Applicable in Texas

Because Texas has limited state-level employment regulations in many areas, federal laws often provide the primary framework. Key federal statutes include:

Fair Labor Standards Act (FLSA): Minimum wage, overtime, child labor
Family and Medical Leave Act (FMLA): Unpaid leave for covered employers
Americans with Disabilities Act (ADA): Disability discrimination and accommodation
Title VII of the Civil Rights Act: Federal anti-discrimination protections
Age Discrimination in Employment Act (ADEA): Age discrimination (40+)
Occupational Safety and Health Act (OSHA): Workplace safety

Source: U.S. Department of Labor: https://www.dol.gov/

Employee Classification Standards in Texas

Texas’s Classification Framework

According to official sources, Texas uses different tests depending on the specific legal context:

For unemployment insurance purposes: Texas generally applies specific statutory factors
For workers’ compensation purposes: Different tests may apply for subscribers vs. non-subscribers
For tax purposes: IRS standards apply at the federal level
For wage and hour purposes: Federal FLSA standards typically govern

⚠️ Important: There is no single, universal classification test in Texas. The appropriate test depends on the legal context and purpose of the classification.

Statutory Authority: Texas Labor Code §§ 201.041-043 (unemployment compensation coverage) Official Guidance: Texas Workforce Commission – https://www.twc.texas.gov/

Classification for Unemployment Compensation

General Framework (As Described by Texas Workforce Commission)

According to Texas law, for unemployment insurance purposes, the determination of whether an individual is an employee or independent contractor generally involves examining the relationship between the parties.

Factors That May Be Relevant:

Texas Workforce Commission guidance indicates that factors considered may include (this is not an exhaustive list):

Factor 1: Control and Supervision

General Description: According to official guidance, this factor generally examines whether the employer has the right to control how, when, and where work is performed.

Considerations that may be relevant (from official guidance):

Whether the employer can dictate work methods and procedures
Whether the employer sets work schedules and hours
Whether the employer provides tools, equipment, or supplies
Whether the employer provides training or detailed instructions
Level of supervision and oversight

Illustrative Scenarios (for general understanding only):

Scenario 1: A company hires a remote software developer who:

Works exclusively for that company full-time
Uses company-provided equipment and software
Must be available during specific core hours (9am-5pm)
Receives detailed technical direction from company supervisors
Participates in weekly team meetings
Has performance reviews by company management

General Analysis: This scenario may share characteristics commonly associated with employee relationships because of the high degree of control, exclusivity, and integration into company operations. However, actual classification depends on all facts and circumstances and official determination by the Texas Workforce Commission. This is not a determination.

Scenario 2: A company engages a remote IT consultant who:

Maintains multiple clients simultaneously
Uses their own equipment and software
Sets their own work hours and schedule
Determines their own work methods and approaches
Invoices the company upon project completion
Has a written independent contractor agreement

General Analysis: This scenario may share characteristics commonly associated with independent contractor relationships because of the independence, multiple clients, and lack of behavioral control. However, actual classification requires analysis of the complete situation including economic realities. The existence of a written agreement alone does not determine classification. This is not a determination.

⚠️ Important: These examples are purely illustrative and do not constitute legal determinations. Classification depends on the totality of circumstances and should be evaluated by legal counsel and the appropriate government agencies.

Factor 2: Economic Realities and Integration

General Description: This factor generally examines the economic relationship between the parties and how integrated the worker is into the business.

Considerations that may be relevant:

Whether the worker has made significant investment in facilities, equipment, or business operations
Whether the worker has opportunity for profit or loss based on managerial skill
Whether the work performed is integral to the employer’s business
Degree of permanency in the relationship
Whether services are available to the general market or exclusive to one business

Factor 3: Written Agreements and Representations

General Description: While written agreements are considered, they are not determinative. Texas authorities generally look at the actual working relationship rather than labels.

⚠️ Critical Point: Calling someone an “independent contractor” in an agreement does not make them one if the actual working conditions reflect an employee relationship. Courts and agencies examine the substance of the relationship, not merely the labels used.

Remote Work Classification Considerations

For remote workers, classification analysis may involve additional complexities:

Location-Related Factors:

Physical work location vs. business location
Whether employer provides or approves home office setup
Level of control over remote work environment
Integration of remote worker into company operations

Technology and Communication:

Company’s control over technology and systems used
Frequency and nature of virtual supervision
Access to company networks and proprietary information
Level of independence in performing remote work

Note: These factors do not change the fundamental legal tests but may affect how those tests are applied to remote work situations. Classification of remote workers should be reviewed with legal counsel familiar with Texas law and federal tax regulations.

Sources:

Texas Workforce Commission: https://www.twc.texas.gov/
IRS Independent Contractor Test: https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee
U.S. Department of Labor FLSA Guidance: https://www.dol.gov/agencies/whd/flsa

Potential Consequences of Misclassification

According to Texas Workforce Commission and other official sources, misclassification may result in:

For Employers:

Potential back payment of unemployment insurance taxes
Possible assessment of interest and penalties
Potential liability for unpaid wages and overtime (if FLSA applies)
Possible workers’ compensation premium adjustments (for subscribers)
Tax implications at state and federal levels
Potential exposure to employee benefit obligations

For Workers:

May affect access to unemployment benefits
May affect workers’ compensation coverage
May affect wage and hour protections under FLSA
May affect eligibility for employment-based benefits
Tax treatment differences

Note: The specific consequences depend on many factors including the nature and duration of the misclassification, whether it was intentional, and other circumstances. This is general information only.

How to Seek Guidance on Classification

Classification questions should be addressed through:

Texas Workforce Commission:

Phone: 512-463-2222 or 800-939-6631
Website: https://www.twc.texas.gov/
Can provide guidance on unemployment insurance coverage determinations

Internal Revenue Service (IRS):

Form SS-8: Determination of Worker Status
Website: https://www.irs.gov/
Can provide determinations for federal tax purposes

Legal Counsel:

Employment attorney licensed in Texas
Can provide advice on classification decisions
Texas Bar Association Referral: 800-204-2222

Tax Professionals:

Certified Public Accountant (CPA)
Enrolled Agent
Can advise on tax implications of classification

⚠️ CRITICAL REMINDER: Worker classification is a legal determination that should be made with professional guidance. The information above is for general educational purposes and does not constitute a classification analysis or legal advice. Different tests apply in different contexts (unemployment insurance, workers’ compensation, tax, wage and hour). Consult multiple professionals and agencies as appropriate for your situation.

Minimum Wage Information for Texas

Current Rate Information (As Published by Texas Workforce Commission)

According to the Texas Workforce Commission, Texas adopts the federal minimum wage rate. The Texas Minimum Wage Act does not establish an independent state minimum wage.

Official Statement from TWC: “Texas adopts the federal minimum wage rate. The federal minimum wage is $7.25 per hour. (Effective July 24, 2009)”

Effective Date	Rate	Authority
July 24, 2009 - Present	$7.25/hour	Federal FLSA / Texas Labor Code Chapter 62
2026	$7.25/hour	No increase scheduled as of December 2025

Sources:

Texas Workforce Commission – Texas Minimum Wage Law: https://www.twc.texas.gov/programs/wage-and-hour/texas-minimum-wage-law
U.S. Department of Labor – Minimum Wage: https://www.dol.gov/general/topic/wages/minimumwage

⚠️ Important: As of December 2025, there is no pending Texas legislation to increase the state minimum wage above the federal rate. Unlike some states that adjust minimum wage annually for inflation or cost of living, Texas has maintained the federal rate since 2009.

Application to Remote Workers

According to general legal principles and official guidance:

Location-Based Application: Minimum wage typically applies based on where work is physically performed, not where the employer is located. A worker performing work from a location in Texas would generally be subject to the Texas/federal minimum wage of $7.25/hour, regardless of where the employer’s business is headquartered.

Key Considerations for Remote Work:

Physical work location is generally the determining factor
Employer location is generally not determinative
If a worker performs work in multiple states, the applicable minimum wage for each location may apply for hours worked in that location
Interstate remote work arrangements may involve complex legal questions

Note: Specific situations can be complex, particularly when work is performed across state lines. Employers with remote workers should consult the Texas Workforce Commission and legal counsel for guidance on particular circumstances.

Local Minimum Wages

Important Note on Texas Preemption:

According to Texas law and court decisions, Texas state law generally preempts local jurisdictions from establishing minimum wages that differ from the state rate.

Texas Labor Code § 62.151 states: “A municipality or other political subdivision may not adopt, enforce, or maintain an ordinance, order, or rule that establishes a minimum wage.”

What This Means:

Cities and counties in Texas cannot establish their own minimum wages
All jurisdictions in Texas follow the same $7.25/hour minimum wage
This differs from states like California or Washington where local minimum wages vary by city

Exception for Government Employers: Some Texas cities have raised minimum wages for their own municipal employees working for the city government. These higher rates generally apply only to government workers, not to private employers within the city.

Examples (for government employees only):

Austin: Has raised minimum wage for city employees to approximately $22/hour for fiscal year 2024-25
Other cities may have similar policies for their government workforce

These municipal wage policies generally do not apply to private employers or create legal obligations for businesses operating in those cities.

Source: Texas Labor Code Chapter 62, Texas Workforce Commission

Tipped Employee Provisions

Texas follows federal guidelines for tipped employees under the Fair Labor Standards Act (FLSA).

General Framework (As Described in Federal Law):

According to the U.S. Department of Labor, employers may pay tipped employees a reduced direct cash wage if certain conditions are met.

Federal Tipped Minimum Wage Provisions:

Component	Amount
Direct cash wage	Minimum $2.13/hour
Maximum tip credit	$5.12/hour
Total minimum compensation	$7.25/hour (cash wage + tips)

Key Requirements (from federal regulations):

According to DOL guidance, to use the tip credit:

Employee must regularly receive more than $30/month in tips
Employer must inform employee of tip credit provisions
Employee must retain all tips (except valid tip pooling arrangements)
If tips + cash wage < $7.25/hour, employer must make up difference

Application to Remote Work: Tipped minimum wage provisions typically apply to service industry positions that traditionally receive tips (servers, bartenders, etc.). These positions are less commonly performed remotely. However, if a traditionally tipped position could be performed remotely (such as remote customer service with tips), the same rules would generally apply.

Texas Labor Code Reference: Texas Labor Code § 62.052 acknowledges that Texas law recognizes the federal tip credit provisions.

Sources:

U.S. Department of Labor – Tips: https://www.dol.gov/agencies/whd/flsa/tips
Texas Workforce Commission: https://www.twc.texas.gov/

⚠️ Note: Tip credit rules are complex and highly regulated. Employers considering using tip credits should consult legal counsel and review DOL guidance thoroughly to ensure compliance.

Youth and Training Wage Provisions

Youth Minimum Wage (Federal Provision):

The Fair Labor Standards Act provides for a youth minimum wage for workers under age 20.

General Provisions (as stated in federal law):

Employees under age 20 may be paid $4.25/hour
Limited to first 90 consecutive calendar days of employment
After 90 days or when employee turns 20 (whichever comes first), regular minimum wage applies
Employers cannot displace other workers to hire youth minimum wage workers

Application in Texas: Texas recognizes the federal youth minimum wage provision. According to Texas Workforce Commission materials, employers may use this provision consistent with federal requirements.

Source: U.S. Department of Labor – Youth Minimum Wage: https://www.dol.gov/agencies/whd/fact-sheets/32-youth-minimum-wage

Exemptions and Special Provisions

According to the Texas Minimum Wage Act and federal law, certain categories of workers may be exempt from minimum wage requirements or subject to different provisions.

Primary Exemption: Texas Labor Code § 62.051 states: “The provisions of this chapter do not apply to a person covered by the federal Fair Labor Standards Act of 1938.”

What This Means: Most employees in Texas are covered by federal FLSA, which means federal minimum wage applies. The Texas Minimum Wage Act provides a backup for any workers not covered by federal law.

Common FLSA Exemptions (from federal law):

The following categories may be exempt from federal minimum wage (and thus Texas minimum wage) under certain circumstances:

Executive, Administrative, and Professional Employees: If they meet specific salary and duties tests (see Overtime section for details)
Outside Sales Employees: Employees whose primary duty is making sales away from the employer’s place of business
Certain Computer Employees: If they meet specific duties and compensation tests
Agricultural Workers: Certain farm and ranch workers may be exempt under specific circumstances
Small Farm Employers: Employers who did not use more than 500 “man-days” of agricultural labor in any calendar quarter of the preceding year
Casual Babysitters and Companions: For elderly or infirm individuals
Students and Learners: Under certain educational or training programs
Workers with Disabilities: Under special certificates (being phased out under federal policy)

Note: Exemptions are narrowly construed and highly fact-specific. Do not assume an exemption applies without verification from the Texas Workforce Commission, U.S. Department of Labor, and legal counsel.

Sources:

Texas Labor Code § 62.051
U.S. Department of Labor – FLSA Exemptions: https://www.dol.gov/agencies/whd/fact-sheets/17a-overtime

Comparison with Neighboring States (For Reference Only)

State	2025 Minimum Wage	2026 (If scheduled)	Notes
Texas	$7.25	$7.25	Follows federal rate
Oklahoma	$7.25	$7.25	Follows federal rate
Arkansas	$11.00	$11.00	State rate above federal
Louisiana	$7.25	$7.25	Follows federal rate
New Mexico	$12.00	TBD	State rate above federal

Note: This comparison is for general reference only. Each state’s minimum wage applies based on where work is performed. When remote workers operate across state lines, applicable wage rates may differ based on work location.

Enforcement and Remedies

Filing a Wage Claim:

According to the Texas Workforce Commission, employees who believe they were paid less than the required minimum wage may:

File a wage claim with TWC:
- Must be filed within 180 days after wages were due
- TWC will investigate and may order payment
- No attorney required to file claim
- Process: https://www.twc.texas.gov/jobseekers/how-submit-wage-claim-under-texas-payday-law
File a lawsuit in civil court:
- Must be filed within 2 years of when wages were due
- May recover unpaid wages plus equal amount as liquidated damages
- May recover reasonable attorney’s fees and court costs
- May require legal counsel

Federal Enforcement: The U.S. Department of Labor Wage and Hour Division also enforces minimum wage under FLSA and can investigate complaints.

Contacts:

Texas Workforce Commission: 800-939-6631
U.S. DOL Wage and Hour Division: 866-487-9243
WHD Dallas District Office: 972-850-4600

Overtime and Break Regulations in Texas

A. OVERTIME STANDARDS

Governing Framework

Texas does not have a separate state overtime law. According to the Texas Workforce Commission, Texas follows the federal Fair Labor Standards Act (FLSA) for overtime requirements.

Statutory Authority: Fair Labor Standards Act, 29 U.S.C. § 207 Official Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/overtime

Texas Workforce Commission Statement: “Texas does not have overtime rules. Employees in Texas are subject to the overtime requirements of the federal Fair Labor Standards Act.”

General Overtime Threshold

According to federal law, the general overtime standard is:

Basic Rule (as stated in FLSA):

Overtime is generally required after 40 hours worked in a workweek
Overtime rate is generally 1.5 times the employee’s regular rate of pay
A “workweek” is a fixed, regularly recurring period of 168 hours (7 consecutive 24-hour periods)

Key Points:

Texas does NOT require daily overtime (no requirement for overtime after 8 hours in a day)
Weekend or holiday work does not automatically trigger overtime unless it causes total weekly hours to exceed 40
Overtime is calculated on a workweek basis, not pay period basis

Source: 29 U.S.C. § 207; 29 C.F.R. § 778

Application to Remote Workers

General Principle: Overtime requirements typically apply based on the nature of the employment relationship and exemption status, not based on work location. Remote workers performing non-exempt work are generally subject to the same overtime requirements as on-site workers.

Remote Work Considerations:

According to DOL guidance and best practices, employers with remote workers should consider:

Tracking Work Hours: How to accurately track hours worked by remote employees
Compensable Time: What activities count as “hours worked” for remote employees
Off-Hours Communication: Whether after-hours emails/calls constitute compensable work time
On-Call Time: Whether time spent available to work from home is compensable

Illustrative Scenario (for general understanding only):

Situation: A remote customer service representative who is non-exempt works:

Monday-Thursday: 10 hours each day (40 hours total)
Friday: Logs in for 3 additional hours

General Analysis: Under federal overtime standards, the 3 hours worked on Friday would generally be overtime hours (at 1.5x regular rate) because total weekly hours exceeded 40. The fact that work was performed remotely does not change the overtime calculation. This is an illustrative example only and actual pay requirements depend on complete circumstances.

⚠️ Important: Determining what constitutes “hours worked” for remote employees can be complex. Consult legal counsel for guidance on tracking and paying remote workers.

Recent Overtime Rule Changes – CRITICAL UPDATE

2024/2025 Federal Overtime Rule Status:

⚠️ IMPORTANT LEGAL DEVELOPMENT: As of December 2025, there have been significant court rulings affecting federal overtime exemption thresholds.

Background: In April 2024, the U.S. Department of Labor published a final rule that would have increased the salary threshold for overtime exemptions in two phases:

July 1, 2024: Increase to $844/week ($43,888 annually)
January 1, 2025: Further increase to $1,128/week ($58,656 annually)

Court Decision: On November 15, 2024, a federal district court in Texas vacated this rule nationwide, finding that the DOL exceeded its statutory authority.

Current Status (as of December 2025):

The salary threshold has reverted to $684/week ($35,568 annually)
This is the threshold established in 2019 and currently in effect
The scheduled January 2025 increase did NOT take effect
Future of the rule is uncertain; DOL may appeal or promulgate new rules

What This Means: Employers using salary-based exemptions should use the $684/week threshold as of December 2025. However, this is a developing area of law and employers should monitor for changes.

Sources:

State of Texas v. DOL, No. 4:24-cv-499 (E.D. Tex. Nov. 15, 2024)
U.S. Department of Labor announcements
Texas Workforce Commission updates

Calculating Compensable Time for Remote Workers

According to federal guidance, “hours worked” for overtime calculation purposes generally includes time when the employee is “suffered or permitted to work.”

Activities That May Constitute Compensable Time:

Based on DOL guidance, the following activities may be considered work time:

Required Meetings and Training: Virtual meetings, training sessions, and conferences that are mandatory
Waiting Time: Time spent waiting to perform work duties (situation-dependent)
On-Call Time: Depending on restrictions placed on employee’s activities while on-call
Travel Time: Work-related travel (with exceptions for normal commuting)
Short Breaks: Rest breaks of 5-20 minutes are generally compensable

Complex Issues for Remote Workers:

Determining compensable time for remote workers can involve additional considerations:

After-Hours Email/Messages: Whether responding to emails or messages outside regular hours constitutes work time depends on factors like:
- Whether responses are required or merely optional
- Whether employee is “engaged to wait” or “waiting to be engaged”
- Employer expectations and policies
Technology Setup: Time spent setting up or troubleshooting work technology may be compensable depending on circumstances
Blurred Boundaries: When home and work locations overlap, distinguishing personal time from work time can be challenging

Best Practice Recommendations (Not Legal Requirements):

Consider implementing clear policies on:

Required vs. optional after-hours availability
How to report all work time accurately
Prohibition on off-the-clock work
Clear start and end times for remote work
Break periods and meal periods

⚠️ Critical: These determinations are fact-specific. Employers should consult wage-hour counsel for guidance on tracking and paying remote workers properly.

Source: 29 C.F.R. § 785

Overtime Exemptions

The FLSA recognizes certain exemptions from overtime requirements. To qualify for an exemption, employees generally must meet ALL required tests for that exemption.

⚠️ Important: Job title alone does NOT determine exemption status. Actual job duties and compensation must meet legal requirements.

Executive, Administrative, and Professional (EAP) Exemptions

To potentially qualify for EAP exemptions, employees generally must meet three tests:

1. Salary Basis Test: Employee must be paid a predetermined amount each pay period that is not subject to reduction based on quality or quantity of work.

2. Salary Level Test: Current Requirement (as of December 2025): Employee must be paid at least $684 per week ($35,568 annually)

⚠️ Note: This threshold was set to increase to $1,128/week in January 2025 but a federal court blocked that increase. The $684/week threshold from 2019 remains in effect as of December 2025.

3. Duties Test: Employee must primarily perform executive, administrative, or professional duties as defined by DOL regulations.

Executive Exemption – Duties Test:

According to DOL regulations, to qualify for the executive exemption, an employee’s primary duty generally must be:

Management of the enterprise or a recognized department/subdivision
Customarily and regularly directing the work of at least two full-time employees (or equivalent)
Authority to hire/fire or recommendations given particular weight

Administrative Exemption – Duties Test:

According to DOL regulations, to qualify for the administrative exemption, an employee’s primary duty generally must be:

Performance of office or non-manual work directly related to management or general business operations
Exercise of discretion and independent judgment on significant matters

Professional Exemption – Duties Test:

According to DOL regulations, to qualify for the professional exemption, an employee’s primary duty generally must be:

Work requiring advanced knowledge in a field of science or learning
Advanced knowledge customarily acquired through prolonged specialized intellectual instruction
OR creative work in a recognized field of artistic or creative endeavor

Note: These are simplified summaries. Actual DOL regulations contain detailed criteria. Misclassification can result in significant liability. Professional classification review is strongly recommended.

Sources:

29 C.F.R. §§ 541.100-541.400
DOL Fact Sheet #17A: https://www.dol.gov/agencies/whd/fact-sheets/17a-overtime

Computer Employee Exemption

Computer employees may be exempt if they meet specific duties and compensation tests.

Compensation Requirement (as of December 2025):

Salary basis: At least $684/week ($35,568 annually), OR
Hourly basis: At least $27.63/hour (as of 2025)

Duties Test: Primary duty must consist of:

Application of systems analysis techniques and procedures
Design, development, documentation, testing, or modification of computer systems or programs
OR combination of these duties requiring same level of skills

Note: This exemption is narrow and does NOT cover all IT workers. Help desk, support technicians, and similar roles often do not qualify.

Source: 29 C.F.R. § 541.400

Highly Compensated Employee (HCE) Exemption

Compensation Requirement:

Total annual compensation of at least $107,432 (as of 2025)
Must include at least $684/week paid on salary or fee basis

Duties Test (Relaxed): Must customarily and regularly perform at least one of the exempt duties of an executive, administrative, or professional employee.

Note: The HCE threshold was set to increase to $151,164 in January 2025 but did not take effect due to court order. The 2019 threshold of $107,432 remains in effect.

Other Common Exemptions

Outside Sales Exemption:

Primary duty is making sales or obtaining orders
Customarily and regularly engaged away from employer’s place of business
No salary requirement for this exemption

Motor Carrier Exemption: Employees subject to U.S. Department of Transportation regulations may be exempt from FLSA overtime (but not minimum wage).

Agricultural Exemptions: Certain farm and ranch workers may be exempt under specific circumstances.

Note: Many other exemptions exist. These are the most common. Consult DOL guidance or legal counsel for specific situations.

Remote Work and Exemption Status

General Principle: Work location (remote vs. on-site) does not change exemption analysis. The same salary and duties tests apply regardless of where work is performed.

Considerations for Remote Workers:

Duties Test: May be more difficult to document and verify for remote workers
Discretion and Independent Judgment: Should be evaluated based on actual authority, not physical presence
Management Responsibilities: Can be exercised remotely through virtual supervision

Best Practice: Regularly review job duties and actual work performed to ensure exemption status remains appropriate, especially for remote positions where job duties may evolve.

⚠️ CRITICAL REMINDER: Overtime exemptions are narrowly interpreted. Misclassification errors can result in significant back pay liability, liquidated damages, and penalties. Classification decisions should be made with guidance from legal counsel and with reference to detailed DOL regulations.

B. MEAL AND REST BREAK REQUIREMENTS

Texas’s Break Standards

According to Texas law and the Texas Workforce Commission, Texas does not require employers to provide meal or rest breaks to adult employees.

Official Texas Workforce Commission Statement: “Texas does not have any laws requiring an employer to provide a meal period or breaks to employees…Texas employers should comply with federal rules regarding breaks.”

Source: Texas Workforce Commission – Guidebook for Employers: https://efte.twc.texas.gov/

Federal Break Standards

While Texas does not mandate breaks, federal law (FLSA) provides guidance on how breaks must be compensated IF an employer chooses to provide them.

Federal FLSA Framework (from DOL regulations):

Short Rest Breaks (5-20 minutes):

If employer provides short breaks, they are generally considered compensable work time
Employees must be paid for these breaks
Examples: coffee breaks, restroom breaks, smoking breaks

Bona Fide Meal Periods (30 minutes or more):

May be unpaid IF the employee is completely relieved of duties
Employee must be free to leave the workstation
If employee performs any work during meal break, the time is compensable

Key Principle: “Completely relieved of duties” means:

Employee cannot be required to answer phones
Employee cannot be required to monitor equipment
Employee cannot perform any work tasks
Employee should be free to leave work area

Sources:

29 C.F.R. § 785.18 (Rest periods)
29 C.F.R. § 785.19 (Meal periods)

What This Means for Texas Employers and Employees

For Employers:

Not required by Texas law to provide any breaks
Not required by federal law to provide any breaks (except nursing mothers – see below)
IF breaks are provided, must follow federal compensation rules
May set policies on when breaks can be taken, how long, etc.
May prohibit work during unpaid meal periods

For Employees:

No legal entitlement to breaks under Texas or federal law (except nursing mothers)
If employer provides breaks, short breaks (≤20 minutes) must be paid
Meal breaks (≥30 minutes) may be unpaid if completely relieved of duties
If required to work during meal break, time must be paid

Nursing Mother Break Requirements

Federal Law Requirement:

Under the Fair Labor Standards Act (amended by the Affordable Care Act), employers must provide:

Break Time:

Reasonable break time for nursing mothers to express breast milk
For one year after child’s birth
Each time employee has need to express milk
Frequency and duration determined by employee’s need

Private Space:

Shielded from view
Free from intrusion by coworkers or public
NOT a bathroom
Must be functional for expressing breast milk

Compensation:

Breaks are not required to be paid under federal law
However, if employee uses an already-provided paid break, it must be compensated as usual

Exemption: Employers with fewer than 50 employees may be exempt if compliance would impose undue hardship.

Source: 29 U.S.C. § 207(r); DOL Fact Sheet #73

Application to Remote Workers

Meal and Rest Breaks: Break requirements (or lack thereof) generally apply equally to remote and on-site workers. If an employer provides breaks as a matter of policy:

Remote workers should receive the same break opportunities
Compensation rules apply the same way
Tracking unpaid meal breaks for remote workers may require clear policies

Nursing Mother Breaks: For remote workers, the “private space” requirement may be satisfied by the employee’s home office or other designated private space in the home. Employer should:

Discuss arrangements with employee
Document understanding of break time and space arrangements
Ensure employee knows breaks are available when needed

Practical Challenges for Remote Work

Potential Issues:

Verifying Breaks Are Taken:
- Harder to verify that unpaid meal breaks are actually taken
- Risk that employees work through breaks without reporting
Work During Meal Periods:
- Difficult to ensure employees are “completely relieved of duties”
- Need clear policies prohibiting work during unpaid breaks
Documentation:
- Time tracking systems should clearly distinguish paid breaks, unpaid breaks, and work time
- Remote workers should accurately report all work time

Recommendations (Not Legal Requirements):

Consider implementing:

Clear written policies on breaks and meal periods
Time tracking systems that require break designation
Training for remote workers on accurate time reporting
Prohibition on working during unpaid meal breaks
Regular review of time records for compliance

⚠️ Note: These are general recommendations. Specific policies should be developed with legal counsel familiar with wage-hour compliance.

One Day of Rest Per Week (Retail Workers)

Texas-Specific Provision:

Texas law provides that certain retail employees are entitled to at least one 24-hour period off per week.

General Framework:

Applies to retail sector employees
Employee must work more than 30 hours per week to qualify
Employer must provide at least one 24-hour period off in a seven-day period
Employee may choose this period for religious observance (subject to reasonable accommodation standards)

Source: Texas Labor Code (various provisions)

Note: This is one of the few Texas-specific break-related requirements. It applies to retail sector workers and is separate from general meal/rest break issues.

Paid Sick Leave in Texas

No State-Mandated Paid Sick Leave

According to available information from the Texas Workforce Commission and Texas statutes, Texas does not currently have a state law requiring private employers to provide paid sick leave to employees.

What this generally means:

Private employers in Texas are generally not required by state law to provide paid sick leave
Employers may choose to provide paid sick leave voluntarily as part of their benefits package
If paid sick leave is provided voluntarily, it may become part of the wage agreement under the Texas Payday Law
Federal laws may provide certain unpaid leave protections (see below)

Source: Texas Workforce Commission materials and Texas Labor Code

No Local Paid Sick Leave Ordinances Currently in Effect

Important Legal Background:

In 2018, the city of Austin passed a local paid sick leave ordinance. However, in 2019, Texas enacted state legislation (HB 222) that generally preempts local governments from requiring employers to provide paid or unpaid leave to employees.

Current Status: As of December 2025, there are no local paid sick leave ordinances in effect in Texas cities. Texas law generally prohibits municipalities from mandating employee benefits including paid sick leave.

Legal Authority: Texas Local Government Code Chapter 143 and related provisions

What This Means: Employers operating in cities like Austin, Houston, Dallas, San Antonio, and other Texas municipalities are not subject to local sick leave mandates. State law governs this area.

Voluntary Employer-Provided Sick Leave

General Principle:

While Texas law does not require paid sick leave, many employers choose to provide it as part of their benefits package. When an employer voluntarily provides paid sick leave through a written policy or agreement, certain principles may apply:

Texas Payday Law Implications:

According to Texas Workforce Commission guidance, if an employer establishes a written paid sick leave policy or includes such provisions in an employment agreement:

The policy may become part of the wage agreement
If the policy promises payment upon certain conditions, those conditions should be honored
Disputes over earned but unpaid sick leave may potentially be addressed through the wage claim process

Key Considerations:

Employer policies should be clear and written
Accrual, usage, and payout provisions should be documented
Employees should receive copies of policies
Changes to policies should be communicated clearly

Note: This is general information. Employers developing sick leave policies should consult legal counsel and HR professionals to ensure policies are clear, compliant, and properly administered.

Federal Leave Protections

While Texas does not mandate paid sick leave, certain federal laws may provide unpaid leave protections in some circumstances:

Family and Medical Leave Act (FMLA)

The federal Family and Medical Leave Act provides up to 12 weeks of unpaid, job-protected leave per year for:

Serious health condition of the employee
Care for family member with serious health condition
Birth/adoption/foster care placement
Certain military family leave purposes

Coverage:

Applies to employers with 50 or more employees within 75 miles
Employee must have worked 1,250 hours in previous 12 months
Employee must have worked for employer for 12 months

Important: FMLA provides unpaid leave, not paid sick leave. It provides job protection and continuation of health benefits.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/fmla

See Part 4 of this guide for more detailed FMLA information.

Americans with Disabilities Act (ADA)

The ADA may require employers to provide reasonable accommodations for employees with disabilities, which could include:

Modified leave policies
Flexible scheduling
Work from home arrangements
Other accommodations depending on circumstances

Coverage: Applies to employers with 15 or more employees

Note: ADA accommodations are individualized and fact-specific. Consult legal counsel for guidance on accommodation requests.

Source: U.S. Equal Employment Opportunity Commission – https://www.eeoc.gov/disability-discrimination

Best Practices for Remote Workers (Recommendations Only)

For employers who choose to provide sick leave, considerations for remote workers may include:

Policy Clarity:

Clear definitions of what constitutes sick leave usage
Whether sick leave can be used for partial days or hourly increments
Documentation requirements (if any)
How remote workers should report sick leave usage

Administration:

Time tracking systems that accommodate sick leave reporting
Communication protocols for reporting absence
Manager training on consistent application of policies

Compliance:

Ensure policies do not discriminate against remote vs. on-site workers
Consider state laws if remote workers are in other states
Document policies in writing

⚠️ Note: These are general recommendations only. Specific policies should be developed with legal and HR counsel.

Workers' Compensation Overview for Texas

Legal Framework

Statutory Authority: Texas Labor Code Title 5, Subtitle A
Administering Agency: Texas Department of Insurance – Division of Workers’ Compensation (TDI-DWC)

Contact Information:

Website: https://www.tdi.texas.gov/wc/
Phone: 512-804-4000
Toll-Free: 800-252-7031
Address: 7551 Metro Center Drive, Suite 100, Austin, TX 78744
Employee Assistance: 800-252-7031, Option 1
Employer Information: 800-252-7031, Option 2

Texas’s Unique Voluntary System

Key Characteristic:

According to the Texas Department of Insurance, Texas is the only state in the U.S. that does not require most private employers to carry workers’ compensation insurance.

Official TDI Statement: “Texas law does not require most private employers to have workers’ compensation insurance coverage. Employers may choose whether to carry coverage.”

What This Means:

Private employers in Texas generally have three options:

Become a “Subscriber” – Purchase workers’ compensation insurance
Become a “Non-Subscriber” – Opt out of the workers’ compensation system
Self-Insurance – Obtain certification to self-insure (requires state approval and financial capacity)

Critical Distinction: This voluntary system applies only to private employers. Different rules apply to public employers and certain contractors (see Exceptions below).

Exceptions: Mandatory Coverage Situations

The following employers generally MUST carry workers’ compensation coverage:

1. Government Entities

According to Texas law, government employers must provide coverage:

State agencies
Counties
Cities and municipalities
School districts
Other public entities

Source: Texas Labor Code provisions regarding government self-insurance

2. Building and Construction Contractors on Public Projects

Employers engaged in building or construction on public works projects generally must provide coverage.

Statutory Authority: Texas Labor Code § 406.096

General Framework:

Applies to contractors and subcontractors on government-funded projects
Coverage required for work on public buildings, roads, infrastructure, etc.
Verification of coverage typically required before contract award

Note: Specific requirements depend on project details. Contractors should verify obligations with contracting agencies.

3. Certain Motor Carriers

Some transportation companies may be required to carry coverage under federal or state regulations.

Note: Requirements vary based on type of transportation, goods carried, and other factors. Motor carriers should consult DOT regulations and legal counsel.

Understanding “Subscribers” vs. “Non-Subscribers”

This distinction is critical in Texas because it fundamentally affects both employer liability and employee rights.

SUBSCRIBERS (Employers with Workers’ Compensation Coverage)

General Characteristics:

Coverage Method:

Purchase insurance policy from licensed carrier
Become certified self-insurer (with state approval)
Join governmental insurance pool (for government entities)

Employer Protections: According to Texas law, subscriber employers generally receive:

Immunity from most employee lawsuits for workplace injuries
Predictable insurance costs
System handles claims administration

Employee Benefits: Employees of subscribers may receive:

Medical benefits for injury treatment
Income benefits (TIBs, IIBs, SIBs, LIBs – see Benefits section)
Death benefits (if injury results in death)
“No-fault” system – benefits available without proving employer negligence

Trade-Off: Employees generally cannot sue subscriber employers in court (with limited exceptions). In exchange, employees receive benefits without needing to prove fault.

Source: Texas Labor Code Title 5

NON-SUBSCRIBERS (Employers Without Coverage)

General Characteristics:

According to Texas law, non-subscriber employers:

Have chosen not to carry workers’ compensation insurance
Must notify employees of non-subscriber status
Must file annual notices with TDI-DWC
Must report certain workplace injuries

Employer Risks: Non-subscribers may face:

Potential liability for workplace injury lawsuits
Employees can sue for negligence
Potentially unlimited damages (unlike capped WC benefits)
No immunity from lawsuits
Legal defense costs
Unpredictable exposure

Employee Rights: Employees of non-subscribers may:

File negligence lawsuits in civil court
Seek broader damages including:
- Full medical expenses (no caps)
- Full lost wages (no weekly maximum)
- Pain and suffering
- Emotional distress
- Punitive damages (in some cases)
Must prove employer negligence (unlike no-fault WC system)

Trade-Off: Employees have potential for higher damages but must prove negligence and bear litigation risks/costs.

Non-Subscriber Reporting Requirements

Critical Compliance Obligations for Non-Subscribers:

According to TDI-DWC regulations, non-subscriber employers must:

1. File Annual Notice (DWC Form-005)

Requirement: Non-subscribers with one or more employees must file Form DWC-005 annually.

Timing:

Initial filing: Within 30 days of hiring first employee OR within 10 days of terminating coverage
Annual filing: Between February 1 and April 30 each calendar year
When requested: Within 10 days of DWC request

How to File: Through TXCOMP system at https://www.tdi.texas.gov/wc/

Information Required:

Business name and contact information
Number of employees
Business locations
NAICS code
Certification of non-subscriber status

2. Notify Employees

Requirement: Must provide written notice to employees that employer does not carry workers’ compensation coverage.

General Guidelines:

Notice should be provided at time of hire
Notice should be posted in workplace
Available in languages spoken by employees
Sample notice available from TDI-DWC

Model Notice Available: TDI-DWC provides model notice forms (Notice 5)

3. Report Workplace Injuries

Requirement: Non-subscribers with 5+ employees must report certain injuries to TDI-DWC.

Reportable Injuries:

Work-related illnesses, OR
Work-related injuries that:
- Caused employee to miss one or more days of work, OR
- Required medical treatment beyond first aid

Timing: Within required timeframes (consult DWC regulations for specific deadlines)

Form: DWC Form-007, Employer’s First Report of Injury or Illness

Source: Texas Administrative Code Title 28, Chapter 110

Benefits Generally Available Under Workers’ Compensation (For Subscribers)

⚠️ Note: The following applies to employees of subscriber employers only. Non-subscriber employees must pursue claims through civil litigation.

According to Texas Labor Code and TDI-DWC regulations, workers’ compensation benefits may include:

1. Medical Benefits

General Framework:

Medical benefits generally cover reasonable and necessary medical care to treat the work-related injury or illness.

May Include:

Emergency treatment
Doctor visits
Hospital stays
Surgery
Medications
Physical therapy
Medical equipment
Other necessary treatment

Provider Network:

Subscribers may use certified networks for medical care
Employee generally must treat within network (with exceptions)
Network provides care coordination

No Deductibles or Co-Pays: According to Texas law, employee generally pays no out-of-pocket costs for covered medical treatment.

Duration: Medical benefits continue as long as reasonably necessary to treat the injury.

Source: Texas Labor Code Chapter 408, Subchapter B

2. Income Benefits

Texas workers’ compensation provides four types of income benefits, calculated based on the employee’s Average Weekly Wage (AWW).

Temporary Income Benefits (TIBs)

Purpose: Replace wages during recovery period when unable to work.

General Eligibility:

Employee unable to work due to injury
Has not reached Maximum Medical Improvement (MMI)
Has been unable to work for more than 7 days

Benefit Amount (as described in statute):

70% of AWW for most employees
75% of AWW for employees earning less than $10/hour (first 26 weeks only)
Subject to statutory maximum and minimum

Duration:

Until employee returns to work, OR
Until employee reaches MMI (typically after 104 weeks maximum)

Maximum Weekly Benefit (2024-2025): Approximately $1,179/week (based on State Average Weekly Wage; updated annually October 1)

Minimum Weekly Benefit: Approximately $177/week (15% of SAWW)

Note: Actual benefit amounts depend on employee’s AWW and may be less than maximums. Benefits are subject to annual adjustment based on state average weekly wage.

Impairment Income Benefits (IIBs)

Purpose: Compensate for permanent impairment after reaching MMI.

General Eligibility:

Employee has reached MMI
Has permanent impairment from injury
Received impairment rating from doctor

Benefit Amount:

70% of AWW
Subject to statutory maximum (approximately $1,179/week for 2024-2025)

Duration Formula:

3 weeks of benefits for each 1% of impairment rating
Example: 10% impairment rating = 30 weeks of IIBs

Note: IIBs compensate for impairment itself, not ongoing wage loss.

Supplemental Income Benefits (SIBs)

Purpose: Provide ongoing benefits for employees with significant impairments who cannot return to pre-injury earnings.

General Eligibility:

Impairment rating of 15% or greater
Not working OR earning less than 80% of pre-injury wages
Did not receive IIBs as lump sum
Making good-faith effort to obtain suitable employment

Benefit Amount:

80% of difference between pre-injury and post-injury wages
Subject to statutory maximum (approximately $1,179/week for 2024-2025)

Duration:

Must reapply quarterly (every 13 weeks)
Maximum duration: 401 weeks from date of injury (approximately 7.7 years)

Application Required: Must file DWC Form-052, Application for Supplemental Income Benefits

Work Search Requirement: Must document job search or meet other qualifying criteria each quarter.

Lifetime Income Benefits (LIBs)

Purpose: Provide lifelong income for catastrophic injuries.

General Eligibility (as described in statute):

Employee must have one of the following injuries:

Loss of both hands at or above the wrists
Loss of both feet at or above the ankles
Loss of one hand and one foot at or above the wrist/ankle
Total loss of eyesight
Injury to the spine resulting in permanent and complete paralysis of both arms, legs, or one arm and one leg
Third-degree burns requiring grafting over at least 40% of body
Third-degree burns to at least one-third of face and head

Benefit Amount:

100% of AWW for first year
75% of AWW thereafter
Subject to statutory maximum

Duration: For life of injured employee

Source: Texas Labor Code § 408.161

3. Death Benefits

Purpose: Provide financial support to surviving family members when work-related injury or illness causes death.

General Eligibility:

Employee’s death resulted from work-related injury or illness
Qualifying beneficiaries (spouse, children, other dependents)

Benefit Amount:

100% of employee’s AWW
Subject to statutory maximum (approximately $1,179/week for 2024-2025)

Duration:

For spouse: Until death or remarriage (special rules for first responder spouses)
For children: Until age 18 (or longer if full-time student or disabled)

Burial Benefits: Up to approximately $10,000 for funeral expenses (as of 2025)

Source: Texas Labor Code Chapter 408, Subchapter D

4. Vocational Rehabilitation

In some circumstances, vocational rehabilitation services may be available to help injured workers return to suitable employment.

Note: Availability depends on injury circumstances and carrier determinations.

Remote Work and Workers’ Compensation

⚠️ COMPLEX AND FACT-SPECIFIC: Coverage of remote worker injuries involves detailed factual analysis. The following is general background only.

General Coverage Principles (For Subscribers)

“Arising Out of and In the Course of Employment”

According to Texas law and case precedent, workers’ compensation generally covers injuries that both:

Arise out of employment – Have a causal connection to work
Occur in the course of employment – Happen during work time and work activity

Application to Remote Workers:

The same general standard applies whether work is performed on-site or remotely. However, analysis for remote workers may involve additional considerations.

Factors That May Be Considered

According to case law and TDI-DWC guidance, factors that may be relevant include (non-exhaustive list):

Work Activity:

Whether employee was engaged in work duties at time of injury
Whether activity was authorized or expected by employer
Whether activity served employer’s interests

Work Location:

Whether injury occurred in designated work area (home office)
Whether employer provided or approved work setup
Whether area is distinguishable from personal living space

Work Time:

Whether injury occurred during work hours
Whether employee was “on the clock”
Whether employee was required to be available

Causation:

Whether work activities caused or contributed to injury
Whether injury would have occurred regardless of work

⚠️ Important: This list is not exhaustive and no single factor is determinative. Each case requires analysis of complete circumstances.

Illustrative Scenarios (For General Understanding Only)

The following scenarios are provided for general educational purposes only. They do not constitute coverage determinations or legal advice. Actual coverage depends on official determination by TDI-DWC or carrier based on all facts.

Scenario Category: Work-Related Activities in Home Office

Example Situation 1: Remote employee trips over computer cables in designated home office while walking to printer to retrieve work documents during scheduled work hours.

General Observations: This type of scenario may share some characteristics with situations that have been found compensable in other contexts, such as:

Activity was work-related (retrieving work documents)
Occurred in work area (home office)
During work hours
Involved work equipment

However, compensability would depend on complete factual analysis including:

Whether home office was employer-designated work area
Whether employer knew of or authorized setup
Whether printer use was work-required
Other specific circumstances

This is not a coverage determination. Actual determination would be made by carrier/TDI-DWC based on all facts.

Example Situation 2: Remote employee develops carpal tunnel syndrome from extended keyboard use performing work duties over several months.

General Observations: Repetitive stress injuries may potentially be compensable in some circumstances, but determination depends on factors such as:

Medical documentation of work-relatedness
Whether condition arose from employment activities
Duration and intensity of work activity
Other contributing factors

This is not a coverage determination. Medical evaluation and official determination required.

Scenario Category: Personal Activities at Home

Example Situation 3: Remote employee injured while preparing personal meal in kitchen during unpaid lunch break.

General Observations: Personal comfort activities unrelated to work duties may be less likely to be considered work-related under general principles. However, specific facts matter:

Whether employee was relieved of all duties
Whether kitchen is part of work area
Whether any work-related factors contributed
Other circumstances

This is not a coverage determination.

Example Situation 4: Remote employee falls down stairs in home while taking break between work tasks.

General Observations: Injuries during breaks from work present complex questions:

Nature and duration of break
Whether activity was work-related or purely personal
Employer expectations during breaks
Other contextual factors

This is not a coverage determination.

⚠️ CRITICAL DISCLAIMER: The scenarios above are purely illustrative examples for general educational purposes. They do not constitute:

Legal advice or coverage determinations
Predictions of how claims would be decided
Exhaustive analysis of relevant factors
Guarantees of coverage or non-coverage

Every workers’ compensation claim is unique and depends on its specific facts. Coverage determinations are made by insurance carriers and TDI-DWC based on complete information and may be subject to dispute resolution processes.

For questions about specific situations:

Contact insurance carrier (for subscribers)
Contact TDI-DWC for official guidance: 800-252-7031
Consult workers’ compensation attorney

Claim Filing Process (General Framework)

For Employees of Subscriber Employers:

According to TDI-DWC materials, the general process typically involves:

Employee Steps:

Report injury to employer – As soon as possible; generally within 30 days recommended
Seek medical treatment – From approved provider network if applicable
File claim with TDI-DWC – Form DWC-041, Employee’s Claim for Compensation (within one year of injury)

Employer/Carrier Steps:

Report injury to carrier – Immediately upon notice
Carrier investigates – Determines compensability
Carrier files reports with TDI-DWC – As required by regulations
Benefits begin or claim denied – Carrier decision within required timeframes

If Claim Denied:

Employee can dispute through TDI-DWC processes
Benefit Review Conference available
Contested Case Hearing if necessary
Appeals available

Deadlines Are Critical: Missing filing deadlines can affect claim. When in doubt, file promptly and seek guidance.

For Employees of Non-Subscriber Employers:

Employees cannot file workers’ compensation claims. Instead:

May file negligence lawsuit in civil court
Must prove employer negligence
Generally have 2 years from injury to file suit (personal injury statute of limitations)
Should consult personal injury attorney

Best Practices for Remote Work (General Recommendations)

The following are general recommendations compiled from various sources. They do not constitute legal requirements and may not be suitable for all situations. Consult legal counsel, safety professionals, and insurance carriers.

For Subscriber Employers:

Consider:

Home Office Guidelines: Provide ergonomic guidance for remote workspaces
Equipment Provision: Consider providing ergonomic equipment
Documentation: Document designated work areas and approved setups
Injury Reporting: Clear procedures for reporting remote work injuries
Safety Training: Remote work safety training for employees
Insurance Consultation: Discuss remote work exposure with carrier

For Non-Subscriber Employers:

Consider:

Liability Exposure: Understand increased exposure for remote worker injuries
Safety Programs: Implement comprehensive safety programs
Alternative Coverage: Consider alternative occupational injury policies
Legal Consultation: Regular consultation with counsel on liability management
Clear Policies: Document work expectations, hours, and locations

For Employees:

Consider:

Designated Work Area: Set up dedicated workspace
Ergonomics: Use proper equipment and posture
Document Setup: Take photos of work area setup
Report Injuries Promptly: Notify employer immediately if injured
Understand Coverage: Know whether employer is subscriber or non-subscriber
Keep Records: Maintain records of work hours and activities

Verification of Coverage Status

How to Verify Whether an Employer is a Subscriber or Non-Subscriber:

TDI-DWC Coverage Verification:

Subscriber List: https://www.tdi.texas.gov/wc/employer/coverage.html
Non-Subscriber List: Texas Open Data Portal
TXCOMP System: Online verification available

Employees Can:

Check online databases
Request written confirmation from employer
Contact TDI-DWC for verification: 800-252-7031

Resources and Contacts

Texas Department of Insurance – Division of Workers’ Compensation:

Main Website: https://www.tdi.texas.gov/wc/
Phone: 800-252-7031
Employee Assistance: Option 1
Employer Information: Option 2
Claims Assistance: https://www.tdi.texas.gov/wc/employee/
Forms: https://www.tdi.texas.gov/wc/forms.html

For Legal Advice:

Workers’ compensation attorney
For subscribers: WC attorney for claim issues
For non-subscribers: Personal injury attorney for lawsuits
Texas Bar Association Referral: 800-204-2222
Website: https://www.texasbar.com/

For Employers:

Insurance carrier or broker
Legal counsel for coverage decisions
TDI-DWC employer resources: https://www.tdi.texas.gov/wc/employer/

⚠️ FINAL CRITICAL REMINDER: Workers’ compensation is a highly specialized area involving complex medical, legal, and factual determinations. The unique Texas system creates additional complexity regarding subscriber vs. non-subscriber status. Coverage questions should be directed to:

Insurance carrier (for subscribers)
TDI-DWC for official guidance: 800-252-7031
Workers’ compensation attorney for legal advice
Medical professionals for injury evaluation

Other Leave Entitlements

Family and Medical Leave Act (FMLA)

⚠️ Federal Law: The FMLA is a federal law. Texas does not have a separate state family and medical leave law. According to Texas Workforce Commission materials, Texas employers must comply with federal FMLA requirements.

Legal Authority: Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq.
Administering Agency: U.S. Department of Labor, Wage and Hour Division

Contact Information:

DOL FMLA Website: https://www.dol.gov/agencies/whd/fmla
DOL Toll-Free: 866-487-9243
Dallas District Office: 972-850-4600

General FMLA Framework

According to the U.S. Department of Labor, the FMLA generally provides eligible employees with:

Up to 12 Weeks of Unpaid, Job-Protected Leave in a 12-month period for:

Birth and care of newborn child
Placement of child for adoption or foster care
Care for spouse, child, or parent with serious health condition
Employee’s own serious health condition
Qualifying exigencies related to military service

Up to 26 Weeks of Unpaid, Job-Protected Leave in a single 12-month period to care for covered servicemember with serious injury or illness.

Key Protections:

Job protection (return to same or equivalent position)
Continuation of group health insurance coverage
Protection against retaliation for using FMLA leave

Important: FMLA provides unpaid leave. However, employers may require or employees may choose to use accrued paid leave (sick, vacation, PTO) concurrently with FMLA leave.

Covered Employers

According to DOL regulations, FMLA generally applies to:

Private Sector Employers:

50 or more employees during each of 20 or more calendar workweeks in the current or preceding calendar year
Employees must be within 75 miles of worksite

Public Agencies:

All public agencies (federal, state, local government) regardless of number of employees
Public and private elementary and secondary schools regardless of number of employees

Special Note for Texas:

Texas’s geographic size can create unique situations. The 75-mile radius requirement means:

An employer with 100 employees total might not cover all employees if they are geographically dispersed
Urban areas generally meet the 50-employee threshold more easily
Rural areas may present challenges for coverage

Example (for illustrative purposes only): A company with 30 employees in Dallas and 30 employees in Houston would generally not be covered because the locations are more than 75 miles apart. However, a company with 50 employees all in the Dallas-Fort Worth area would generally be covered.

Employee Eligibility

According to DOL regulations, to be eligible for FMLA leave, an employee generally must:

Work for a covered employer
Have worked for the employer for at least 12 months (not necessarily consecutive)
Have worked at least 1,250 hours during the 12 months before leave starts
Work at a location where employer has 50+ employees within 75 miles

Calculation Notes:

12 months of employment need not be consecutive
1,250 hours = approximately 24 hours per week over 52 weeks
Time on unpaid FMLA leave doesn’t count toward 1,250-hour requirement

Special Rules:

Airline flight crew members have different hours requirements
Military service time counts toward the 12-month requirement

Qualifying Reasons for Leave

Birth and Bonding:

Birth of child and to care for newborn
Placement of child for adoption or foster care
Must be taken within one year of birth or placement

Serious Health Conditions:

According to DOL guidance, a “serious health condition” generally means an illness, injury, impairment, or physical or mental condition that involves:

Inpatient care (overnight stay in medical facility), OR
Continuing treatment by a healthcare provider

Examples that may qualify (from DOL guidance):

Conditions requiring absence of more than 3 consecutive days with continuing treatment
Chronic conditions requiring periodic visits to healthcare provider
Pregnancy-related conditions and prenatal care
Permanent or long-term conditions for which treatment may not be effective

Examples that generally do NOT qualify:

Routine medical exams
Common cold, flu (unless complications develop)
Cosmetic treatments (unless inpatient care or complications)

Note: Specific determinations depend on medical facts and certification. When in doubt, consult DOL guidance or legal counsel.

Military Family Leave:

Qualifying Exigency Leave (up to 12 weeks): When spouse, child, or parent is on covered active duty or called to active duty in Armed Forces.

May be used for:

Short-notice deployment
Military events and activities
Childcare and school activities
Financial and legal arrangements
Counseling
Rest and recuperation
Post-deployment activities
Other agreed-upon activities

Military Caregiver Leave (up to 26 weeks): To care for covered servicemember or veteran with serious injury or illness.

May be used by spouse, child, parent, or next of kin of servicemember.

Leave Duration and Scheduling

General 12-Week Leave:

Up to 12 weeks in a 12-month period
Employer may choose one of four methods to calculate the 12-month period
Must apply method consistently to all employees

Leave Scheduling Options:

According to DOL regulations, FMLA leave may be taken:

Continuously: All at once (e.g., 12 consecutive weeks)
Intermittently: Separate blocks of time (e.g., a few days at a time)
Reduced Schedule: Reducing normal work schedule (e.g., working part-time)

Intermittent/Reduced Schedule Leave:

Generally allowed for employee’s own serious health condition
Generally allowed for family member’s serious health condition when medically necessary
For birth/bonding: Only with employer approval
Employer may transfer employee temporarily to alternative position with equivalent pay/benefits

Employee Responsibilities

According to DOL regulations, employees generally should:

Provide Notice:

Foreseeable Leave: 30 days’ advance notice when possible
Unforeseeable Leave: Notice as soon as practicable (usually same or next business day)
Follow employer’s usual call-in procedures when possible

Provide Information:

Sufficient information for employer to determine if FMLA may apply
Need not specifically mention “FMLA” by name
Should provide enough detail about reason for leave

Provide Certification:

May be required to provide medical certification for serious health conditions
Generally must provide within 15 days (or as soon as practicable)
Employer may require second or third medical opinion (at employer’s expense)

Report Periodically:

Employer may require periodic updates on status and intent to return

Provide Fitness-for-Duty Certification:

For employee’s own serious health condition
Before returning to work (if employer policy requires)

Employer Responsibilities

According to DOL regulations, employers generally must:

Provide Notice:

Post FMLA notice in workplace
Include FMLA rights in employee handbook or materials
Provide individual notices when employee requests leave or employer learns leave may be FMLA-qualifying

Maintain Health Insurance:

Continue group health insurance on same terms as if employee had not taken leave
Employee must continue to pay their share of premiums

Job Protection:

Restore employee to same position or equivalent position
Equivalent position must have same pay, benefits, working conditions, and substantially similar duties

Prohibit Interference and Retaliation:

Cannot interfere with FMLA rights
Cannot retaliate against employees for using FMLA leave
Cannot count FMLA leave under “no-fault” attendance policies

Application to Remote Workers

General Principle:

FMLA eligibility and protections generally apply equally to remote workers and on-site workers if they meet eligibility requirements.

Key Considerations for Remote Work:

Worksite Location:

Employee’s “worksite” for 75-mile radius calculation is generally where they report to or from which assignments are made
For remote workers, typically the office they report to (even if virtually)
May be their home if they have no regular office assignment

50-Employee Count:

Counted based on where employees “report to” for work assignment purposes
Remote workers typically counted at their assigned reporting location
Geographic dispersion may affect coverage

Intermittent Leave Administration:

May be more complex for remote workers
Employers should have clear policies for tracking intermittent leave for remote employees
Documentation systems become especially important

Medical Certification:

Same certification requirements apply
May be submitted electronically
Telemedicine visits may satisfy healthcare provider requirements

Relationship with Other Leave Types

FMLA and Paid Sick Leave:

If employer provides paid sick leave, employer may require use of paid leave concurrently with FMLA
Employee may choose to use paid leave concurrently with FMLA
Running paid leave concurrently does not extend FMLA leave period

FMLA and Workers’ Compensation:

If absence qualifies for both, leaves may run concurrently
Texas workers’ comp leaves may exceed 12 weeks (FMLA exhausts after 12 weeks)
Job restoration rights may differ after FMLA exhausted

FMLA and ADA:

FMLA provides specific leave entitlement up to 12 weeks
ADA may require additional unpaid leave as reasonable accommodation beyond FMLA
Both laws may apply simultaneously
Consult legal counsel for situations involving both statutes

Filing Complaints

If FMLA Rights Violated:

Employees may:

File complaint with DOL Wage and Hour Division
- No time limit for DOL administrative complaint
- DOL may investigate and seek remedies
- Phone: 866-487-9243
- Website: https://www.dol.gov/agencies/whd/fmla/complaint
File private lawsuit
- Generally must file within 2 years of violation (3 years if willful)
- May recover damages, reinstatement, attorneys’ fees
- May require legal counsel

Texas-Specific Resource:

Texas Workforce Commission provides FMLA information: https://efte.twc.texas.gov/fmla.html
TWC does not enforce FMLA (federal law) but provides employer guidance

Texas-Specific Leave Considerations

No State Family Leave Law

Important: Texas does not have a state family and medical leave law beyond federal FMLA. According to Texas law:

Texas prohibits local governments from enacting leave mandates
Cities cannot require employers to provide paid or unpaid leave
State preempts local leave ordinances

What This Means:

All employers in Texas follow the same FMLA standards
No city-specific leave requirements currently in effect
Employers with fewer than 50 employees are not required to provide family/medical leave (though may choose to do so voluntarily)

Jury Duty Leave

Texas law provides certain protections for jury service.

Texas Law: According to Texas statutes, employers generally:

Cannot terminate permanent employees for jury service
Cannot require use of vacation/sick leave for jury service
Must allow employee to return to same employment

Note: Employers are not required to pay employees for jury service time (though may choose to). Employees receive nominal compensation from the court.

Source: Texas Civil Practice and Remedies Code § 122.001

Voting Leave

Texas law does not require employers to provide paid time off to vote. However, federal law prohibits intimidation or coercion related to voting.

Recommendation: Employers may choose to provide flexibility for voting, though not legally required.

Anti-Discrimination Laws in Texas

Legal Framework

Texas employees are protected from discrimination under both federal and state laws.

Federal Anti-Discrimination Laws

Enforcing Agency: Equal Employment Opportunity Commission (EEOC)

Major Federal Statutes:

Title VII of the Civil Rights Act of 1964
- Prohibits discrimination based on: race, color, religion, sex, national origin
- Applies to employers with 15+ employees
- Covers hiring, firing, promotion, compensation, harassment, and other terms/conditions of employment
Age Discrimination in Employment Act (ADEA)
- Prohibits discrimination based on age (40 and older)
- Applies to employers with 20+ employees
Americans with Disabilities Act (ADA)
- Prohibits discrimination based on disability
- Requires reasonable accommodations for qualified individuals with disabilities
- Applies to employers with 15+ employees
Pregnancy Discrimination Act (PDA)
- Amendment to Title VII
- Prohibits discrimination based on pregnancy, childbirth, or related medical conditions
Genetic Information Nondiscrimination Act (GINA)
- Prohibits discrimination based on genetic information
- Applies to employers with 15+ employees
Equal Pay Act (EPA)
- Requires equal pay for equal work regardless of sex
- Applies to virtually all employers

EEOC Contact Information:

Website: https://www.eeoc.gov/
Phone: 800-669-4000
File Charge Online: https://publicportal.eeoc.gov/

Texas State Anti-Discrimination Law

Texas Commission on Human Rights Act (TCHRA)

Statutory Authority: Texas Labor Code Chapter 21
Enforcing Agency: Texas Workforce Commission – Civil Rights Division

Protected Classes Under TCHRA:

According to Texas Labor Code Chapter 21, the TCHRA generally prohibits discrimination based on:

Race
Color
Disability
Religion
Sex (including pregnancy)
National origin
Age (40 and older)
Genetic information

Coverage:

Applies to employers with 15 or more employees for each working day in each of 20 or more calendar weeks in the current or preceding calendar year
Applies to employment agencies and labor organizations
Covers state and local governments

Protected Employment Actions:

The TCHRA generally makes it unlawful to discriminate with regard to:

Hiring and firing
Compensation
Terms, conditions, or privileges of employment
Classification of employees
Referral for employment
Union membership or office

TWC Civil Rights Division Contact:

Website: https://www.twc.texas.gov/programs/civil-rights
Phone: 888-452-4778 (toll-free)
Address: 101 E. 15th Street, Room 144-T, Austin, TX 78778

Harassment as Discrimination

General Principle:

According to EEOC and TWC guidance, harassment based on a protected characteristic is a form of discrimination when:

The conduct is unwelcome
Based on a protected characteristic
Sufficiently severe or pervasive to create a hostile work environment OR
Results in a tangible employment action (quid pro quo)

Types of Harassment:

Hostile Work Environment:

Unwelcome conduct based on protected characteristic
Severe or pervasive enough to create abusive or hostile work environment
Reasonable person would find environment hostile

Quid Pro Quo:

Submission to conduct is made explicit or implicit condition of employment
Submission to or rejection of conduct is used as basis for employment decisions

Examples of Harassing Conduct (from EEOC guidance):

Offensive jokes, slurs, epithets, or name calling
Physical assaults or threats
Intimidation, ridicule, or mockery
Offensive objects or pictures
Interference with work performance

Note: Not every offensive comment constitutes illegal harassment. Harassment must be based on protected characteristic and meet legal threshold of severity/pervasiveness.

Retaliation Protection

Federal and Texas Law:

Both federal law and the TCHRA prohibit retaliation against employees for:

Filing a discrimination complaint
Participating in discrimination investigation or lawsuit
Opposing discrimination (making good-faith complaint)

General Standard: Employer cannot take adverse action against employee because employee engaged in protected activity.

Protected Activities Include:

Filing EEOC or TWC charge
Testifying in discrimination proceeding
Reporting discrimination to management
Requesting reasonable accommodation
Resisting sexual advances

Adverse Actions May Include:

Termination
Demotion
Pay reduction
Negative performance evaluation
Hostile treatment

Reasonable Accommodations

Disability Accommodations (ADA)

According to EEOC guidance, employers generally must provide reasonable accommodations for qualified individuals with disabilities unless doing so would cause undue hardship.

Qualified Individual:

Has a disability (physical or mental impairment that substantially limits major life activity)
Can perform essential functions of the job with or without accommodation

Reasonable Accommodations May Include:

Modifications to work schedule
Leave of absence
Modification of work duties
Provision of assistive technology
Workplace modifications (e.g., accessible workspace)
Reassignment to vacant position

Interactive Process:

Employer and employee should engage in interactive dialogue
Identify employee’s limitations
Discuss potential accommodations
Select effective accommodation

Undue Hardship: Employer may deny accommodation if it would impose significant difficulty or expense considering:

Nature and cost of accommodation
Employer’s resources
Impact on operations

Religious Accommodations (Title VII)

Employers generally must reasonably accommodate employees’ sincerely held religious beliefs unless doing so would cause undue hardship.

Common Religious Accommodations:

Schedule changes for religious observances
Dress code exceptions for religious attire
Exceptions from certain job duties (if possible without undue hardship)

Undue Hardship (Religion): More than minimal cost or burden on employer’s operations (lower standard than ADA).

Pregnancy Accommodations

Pregnant Workers Fairness Act (PWFA) – Federal Law Effective June 27, 2023:

According to EEOC guidance, employers with 15+ employees must provide reasonable accommodations for known limitations related to pregnancy, childbirth, or related medical conditions unless undue hardship.

May Include Accommodations For:

Ability to sit or drink water
Receive closer parking
Have flexible hours
Receive appropriately sized uniforms
Receive additional break time to use bathroom, eat, rest
Take leave or time off

Note: This is a relatively new federal law. Employers should review EEOC guidance for implementation.

Application to Remote Workers

General Principle:

Anti-discrimination laws generally apply equally to remote workers and on-site workers.

Considerations for Remote Work:

Harassment:

Can occur through virtual means (video calls, chat, email)
Employers responsible for preventing harassment in virtual environments
Same standards apply for severity and pervasiveness

Reasonable Accommodations:

Remote work itself may be a reasonable accommodation in some circumstances
Other accommodations may be needed for remote work setup
Interactive process applies to remote workers

Discriminatory Decisions:

Hiring, promotion, termination decisions must be non-discriminatory regardless of work location
Cannot treat remote workers differently based on protected characteristic

Monitoring:

If employer monitors remote workers (time tracking, computer monitoring), must apply non-discriminatorily
Cannot selectively monitor based on protected characteristic

Filing Discrimination Complaints

EEOC Complaints (Federal Law)

Deadline: Generally 300 days from discriminatory act (in states with state agency like TWC)

Process:

File charge with EEOC (online, phone, or in person)
EEOC investigates or refers to state agency
EEOC attempts conciliation if discrimination found
If conciliation fails, EEOC may sue or issue Right to Sue letter
Employee has 90 days from Right to Sue letter to file lawsuit

Contact EEOC:

Website: https://www.eeoc.gov/
Phone: 800-669-4000
Dallas District Office: 214-253-2700

TWC Complaints (Texas Law)

Deadline: Generally 180 days from discriminatory act

Process:

File complaint with TWC Civil Rights Division
TWC investigates
TWC attempts resolution
If no resolution, TWC may issue determination or Right to Sue letter
Employee may file lawsuit in state court

Contact TWC:

Phone: 888-452-4778
Online: https://www.twc.texas.gov/programs/civil-rights/employment-discrimination

Dual Filing

Work-Sharing Agreement:

EEOC and TWC have work-sharing agreement. Filing with one agency generally constitutes filing with both (“dual filing”).

Benefits:

Protects employee’s rights under both state and federal law
Extends filing deadline to 300 days for federal claims
Avoids need to file separately with both agencies

Employer Best Practices (Recommendations Only)

The following are general recommendations and do not constitute legal requirements. Consult legal counsel for specific policy development.

Anti-Discrimination Policies:

Written policy prohibiting discrimination and harassment
Clear reporting procedures
Non-retaliation provisions
Regular training for employees and managers

For Remote Work Environments:

Extend anti-discrimination policies to virtual workplace
Train on virtual harassment prevention
Ensure accommodation process works for remote employees
Monitor for disparate treatment of remote vs. on-site workers

Investigation Procedures:

Prompt investigation of complaints
Impartial investigators
Appropriate corrective action when discrimination found
Documentation of investigations

Data Privacy Considerations for Remote Work

Texas Data Privacy Landscape

Current Status:

As of December 2025, Texas does not have a comprehensive state data privacy law similar to California’s CCPA or GDPR in Europe.

What This Means:

Texas employers are not subject to a Texas-specific data privacy statute for employee data
Federal laws and sector-specific regulations still apply
Employers handling consumer data may be subject to other states’ privacy laws if conducting business there
Common law principles (like privacy torts) still apply

Federal Privacy Laws Applicable to Employers

Health Insurance Portability and Accountability Act (HIPAA):

Applies to health plans and healthcare providers
Protects medical information
May apply to employer-sponsored health plans
Consult HIPAA counsel for covered entities

Genetic Information Nondiscrimination Act (GINA):

Limits employer collection and use of genetic information
Prohibits discrimination based on genetic information

Fair Credit Reporting Act (FCRA):

Regulates use of consumer reports (including background checks)
Requires notice and consent for background checks
Provides dispute procedures

Electronic Communications Privacy Act (ECPA):

Restricts interception of electronic communications
Applies to email, phone monitoring
Exceptions for business use with notice

Employee Monitoring in Remote Work

General Principles:

Employers may generally monitor employee work activities but should consider:

Reasonable expectation of privacy
Notice to employees
Legitimate business purpose
Proportionality of monitoring

Types of Monitoring:

Computer and Internet Monitoring:

Employers generally may monitor company-provided devices
Should provide clear notice to employees
Should have policy explaining what is monitored

Video Surveillance:

Generally permissible in work areas with notice
For remote workers: monitoring home offices raises additional privacy concerns
Should avoid monitoring areas where employees have reasonable expectation of privacy (e.g., bedrooms, bathrooms)

Email and Communication Monitoring:

Employer generally may monitor work email on company systems
Should have clear policy
Consider employee privacy expectations

Time Tracking:

Employers may use time-tracking software for remote workers
Should notify employees of tracking methods
Should not be overly intrusive

Best Practice Recommendations (Not Legal Requirements):

Provide clear written policy on monitoring
Notify employees what is monitored and how
Use least intrusive methods necessary
Limit monitoring to work-related activities
Comply with any applicable state laws if employees work from other states

Employee Personal Information

General Data Security Considerations:

While Texas does not have comprehensive data privacy law, employers should consider:

Data Minimization:

Collect only information necessary for employment purposes
Limit access to employee data to those with business need

Data Security:

Implement reasonable security measures to protect employee data
Protect SSNs, financial information, health information
Have incident response plan for data breaches

Data Breach Notification: Some states require notification of data breaches. If employer has employees in multiple states, may need to comply with various state breach notification laws.

Vendor Management:

Vet third-party vendors who handle employee data
Use contracts with privacy/security provisions
Consider vendor security practices

Remote Work-Specific Privacy Considerations

Home Office Privacy:

Employers should respect employee’s privacy in home
Video calls: employees should control whether camera is on (unless business necessity)
Avoid requiring surveillance of home spaces
Clear policies about home office setup

Personal Device Use (BYOD):

If employees use personal devices for work, establish clear policies
Consider separate work profiles/containers on personal devices
Clarify what employer can access on personal devices
Address device wiping upon termination

Wi-Fi and Network Security:

Provide guidance on secure Wi-Fi use
Consider providing VPNs or other security tools
Train employees on security best practices

Family Members:

Recognize that family members may be present during remote work
Address confidentiality expectations
Consider when video calls might include background of home

Confidentiality and Trade Secrets

Employers should consider:

Confidentiality Agreements:

May require employees to sign confidentiality agreements
Should be reasonable in scope
Enforceable under Texas law if reasonable

Trade Secret Protection:

Texas Uniform Trade Secrets Act protects trade secrets
Reasonable security measures required
Remote work may require additional security protocols

Exit Procedures:

Return of confidential information upon termination
Wiping of company data from personal devices (if permitted under BYOD policy)
Reminder of continuing confidentiality obligations

Recommendations for Remote Work Privacy (Not Legal Requirements)

For Employers:

Develop comprehensive remote work privacy policy
Train employees on privacy and security expectations
Balance monitoring needs with employee privacy
Consult legal counsel on monitoring practices
Consider multi-state compliance if employees in different states
Review vendor contracts for privacy/security provisions

For Employees:

Understand employer’s monitoring policies
Keep work and personal activities separate
Use company-provided security tools (VPN, etc.)
Report security concerns promptly
Maintain confidentiality of company information

Remote Work Considerations

Legal Framework for Remote Work in Texas

General Principle:

Texas does not have specific statutes governing remote work arrangements. According to general principles, most employment laws apply regardless of where work is physically performed.

What This Means:

Employment laws generally apply equally to remote and on-site workers
Work location typically does not change legal obligations
Specific considerations may apply in certain contexts (see below)

Multi-State Remote Work Complexities

When Employee Works from Different State Than Employer:

If a Texas employer has a remote employee working from another state, or if a Texas resident works remotely for an out-of-state employer, various legal considerations may arise:

Employment Law Considerations:

Which state’s employment laws apply may depend on multiple factors
Work location state laws often govern (for wage/hour, leave, etc.)
Employer location may matter for some purposes
Specific analysis required for each law

Workers’ Compensation:

Generally based on where work is performed
Multi-state employers may need coverage in multiple states
Texas’s unique voluntary system adds complexity
Consult insurance carrier and legal counsel

Unemployment Insurance:

Generally based on where work is performed
Multi-state employers may need to register in multiple states
Specific rules vary by state

Recommendation: Employers with remote workers in multiple states should consult legal counsel familiar with multi-state employment law to ensure compliance in all relevant jurisdictions.

Home Office Safety and Liability

OSHA Applicability:

According to federal OSHA guidance, OSHA does not hold employers liable for employees’ home offices. However:

Employers remain responsible for workplace safety generally
If employer requires specific home office setup, additional considerations may apply
Employer-provided equipment should meet safety standards

Best Practices (Not Legal Requirements):

Employers may consider:

Providing ergonomic guidance for home office setup
Offering ergonomic equipment or stipends
Clear policies on reporting work-related injuries at home
Safety training that includes remote work scenarios

For workers’ compensation considerations, see Part 3 of this guide.

Equipment and Expense Reimbursement

Texas Law:

Texas does not have a law specifically requiring employers to reimburse remote workers for business expenses, equipment, or internet/phone costs.

Federal Law:

The federal Fair Labor Standards Act requires that business expenses cannot reduce an employee’s pay below minimum wage or reduce overtime compensation.

What This Means:

Employers are not required by Texas or federal law to reimburse most remote work expenses
If unreimbursed expenses would cause employee to earn less than minimum wage, employer may be required to reimburse
Employers may choose to provide equipment or reimbursement voluntarily

Employer Considerations:

Many employers voluntarily provide laptops, monitors, and other equipment
Some offer stipends for internet or home office setup
Policies should be clear and consistently applied
Consider tax implications of reimbursements/stipends

IRS Consideration: The Tax Cuts and Jobs Act of 2017 eliminated the deduction for unreimbursed employee expenses for W-2 employees through 2025. Employees cannot deduct home office expenses on federal taxes unless self-employed.

Remote Work Policies and Agreements

Recommended Components (Not Legal Requirements):

Employers developing remote work policies may consider including:

Eligibility and Approval:

Which positions are eligible for remote work
Approval process
Trial periods or evaluation procedures

Work Location:

Expected primary work location
Requirements to notify employer of location changes
Travel or temporary relocation policies

Work Hours and Availability:

Expected work hours or core hours
Availability expectations
Communication response time expectations

Equipment and Technology:

What employer will provide
Employee responsibilities for equipment care
IT support procedures
Security requirements

Expense Reimbursement:

What expenses (if any) will be reimbursed
Reimbursement procedures and documentation

Performance and Productivity:

Performance expectations
Communication requirements
Meeting attendance expectations

Termination of Remote Work:

Conditions under which remote work may be terminated
Process for returning to office if required

Confidentiality and Data Security:

Requirements for protecting confidential information
Use of VPNs or other security tools
Prohibition on family member access to work systems

⚠️ Note: These are general considerations. Specific policies should be developed with legal and HR counsel to ensure compliance with applicable laws and appropriateness for the organization.

Right to Work Remotely

Important: There is generally no legal “right” to work remotely under Texas or federal law (with limited exceptions for disability accommodations).

General Principles:

Remote work is typically a privilege, not a right
Employers generally can require employees to work on-site
Employers can terminate remote work arrangements
Exceptions may apply in specific circumstances (e.g., ADA reasonable accommodation)

ADA Consideration: Under the Americans with Disabilities Act, remote work may be a reasonable accommodation for an employee with a disability if:

Employee has a disability as defined by the ADA
Remote work would enable employee to perform essential job functions
Remote work would not cause undue hardship to employer
Requires individualized assessment through interactive process

Employers should consult legal counsel when remote work is requested as a disability accommodation.

Tax Information for Remote Workers

Texas State Income Tax – Major Advantage

Critical Point: Texas does not have a state income tax on wages or salaries.

Texas Constitution:

The Texas Constitution prohibits the state legislature from enacting an income tax without voter approval through a constitutional amendment.

What This Means:

For Texas residents working in Texas:

No state income tax on wages
Only federal income tax applies to employment income
Significant tax advantage compared to most other states

Tax Savings Example (Illustrative Only):

A Texas resident earning $100,000 annually might save:

California (13.3% top rate): Up to $13,300/year
New York (10.9% top rate): Up to $10,900/year
New Jersey (10.75% top rate): Up to $10,750/year

This is for illustrative purposes only. Actual tax liabilities depend on many factors. Consult a tax professional.

Multi-State Tax Scenarios

General Principle:

According to general tax principles, individuals typically owe state income tax to:

The state where they physically perform work (work state)
The state where they are a legal resident (resident state)

Most states provide a credit for taxes paid to another state to prevent double taxation.

Scenario 1: Texas Resident Working Remotely for Out-of-State Employer

Example: Texas resident works 100% remotely from home in Texas for a California company.

General Tax Treatment:

Texas: No state income tax (Texas doesn’t have one)
California: Generally no California tax because work is not physically performed in California
Federal: Normal federal income tax applies
Result: Employee typically owes only federal tax

Exception – “Convenience of Employer” States:

Some states have “convenience of employer” rules that may attempt to tax income even when work is performed remotely from another state. These states include:

New York
Pennsylvania
Delaware
Connecticut
Nebraska

How It Works:

These states may claim tax on remote worker’s income if employer is located in that state
Distinction between working remotely for “employer’s convenience” vs. “employee’s convenience”
If employee never physically works in employer state, may be able to challenge tax
Complex and sometimes disputed

If Your Employer Is in One of These States:

You may receive a W-2 showing withholding for that state
You may need to file a non-resident return to request refund
Consult tax professional familiar with convenience-of-employer rules
May need to show employer required or requested remote work arrangement

Scenario 2: Out-of-State Resident Working Remotely for Texas Employer

Example: California resident works 100% remotely from home in California for a Texas company.

General Tax Treatment:

Texas: No Texas income tax (Texas doesn’t have one)
California: Full California income tax on all wages as California resident
Federal: Normal federal income tax
Result: Employee owes California state tax plus federal tax

Note: No Texas tax is owed because Texas has no income tax. Employee only pays tax to their home state of California.

Scenario 3: Employee Works in Multiple States

Example: Texas resident travels to employer’s office in another state for part of the year.

General Tax Treatment:

Income generally allocated based on where work is physically performed
Texas portion: No Texas state tax
Other state portion: May owe tax to other state based on days worked there
May need to file non-resident return in work state

Allocation Methods:

Generally based on number of days worked in each state
Some states have specific thresholds (e.g., must work X days before filing required)
Some states tax any income earned in state

Thresholds Vary:

Some states: Any work performed in state requires filing
Some states: Minimum income thresholds (e.g., $600+, $1,000+)
Some states: Minimum days worked (e.g., 14 days, 30 days)

Consult tax professional if working in multiple states.

Federal Income Tax

Filing Requirements:

Remote workers file federal tax returns the same as on-site workers:

File using home address
Report all W-2 and 1099 income
Work location generally does not change federal filing obligations

Home Office Deduction:

CRITICAL CHANGE (Tax Cuts and Jobs Act of 2017):

The Tax Cuts and Jobs Act eliminated the home office deduction for W-2 employees for tax years 2018 through 2025.

Current Law (December 2025):

W-2 Employees: CANNOT deduct home office expenses on federal returns
Self-Employed / Independent Contractors: CAN deduct home office expenses if they meet requirements

Requirements for Self-Employed (If Applicable):

To claim home office deduction, self-employed individuals must show:

Regular and exclusive use of home space for business
Home office is principal place of business
Trade or business use (not for investment)

For details: IRS Publication 587 – Business Use of Your Home

Employer Tax Obligations

Payroll Tax Withholding:

Employers must withhold taxes based on where employee works:

Federal Taxes:

All employers must withhold federal income tax, Social Security, Medicare
Based on employee W-4 form
Follows federal tax tables

State Taxes:

Withhold for state where employee physically performs work
For Texas employees working in Texas: No state withholding (Texas has no income tax)
For remote employees in other states: Withhold for their work state
Must register with other states’ tax agencies if employees work there

Multi-State Employers:

Employers with remote workers in multiple states may need to:

Register with multiple state revenue agencies
Maintain separate state unemployment insurance accounts
Track where each employee performs work
File quarterly reports with multiple states
Comply with different state withholding rules

This can become very complex. Employers should consult:

Payroll tax professionals
Multi-state tax specialists
Tax attorneys

Tax Nexus for Employers

What Is Nexus:

“Nexus” means a taxable connection or presence in a state that may trigger tax obligations.

Remote Workers May Create Nexus:

Having remote employees working in other states may create nexus for:

State corporate/franchise tax
State sales tax collection obligations
Other state-level compliance requirements

Example:

A Texas company with no physical office in California but with remote employees working from California may create California nexus, potentially triggering California franchise tax obligations.

Recommendation:

Employers should conduct nexus analysis when hiring remote workers in new states. Consult with:

Multi-state tax attorneys
CPA firms with multi-state expertise
Tax consultants

Texas Franchise Tax

What Is It:

Texas does not have a corporate income tax, but does have a franchise tax (also called “margin tax”) on businesses.

Who Pays:

Corporations
LLCs
Partnerships
Other entities doing business in Texas

What Is Taxed:

Taxable margin (revenue minus certain deductions)
Various calculation methods available
Thresholds and exemptions apply

Not an Employment Tax:

The franchise tax is not directly related to employment, but employers doing business in Texas should be aware of this obligation.

For More Information:

Texas Comptroller: https://comptroller.texas.gov/taxes/franchise/
Phone: 800-252-5555

Tax Resources

Federal Tax Information:

Internal Revenue Service (IRS)

Website: https://www.irs.gov/
Phone: 800-829-1040 (individuals)
Business: 800-829-4933
Publication 587: Business Use of Your Home

Texas Tax Information:

Texas Comptroller of Public Accounts

Website: https://comptroller.texas.gov/
Phone: 800-252-5555
Note: No state income tax information needed (Texas has no income tax)

Professional Tax Assistance:

Consult these professionals for tax advice:

Certified Public Accountant (CPA)
Enrolled Agent (EA) – federally licensed tax practitioner
Tax Attorney
For multi-state issues: Professionals with multi-state tax expertise

Finding Tax Professionals:

Texas Society of CPAs: https://www.tscpa.org/ or 800-428-0272
National Association of Enrolled Agents: https://www.naea.org/
State Bar of Texas (Tax Section): 800-204-2222

Resources

Texas State Agencies

Texas Workforce Commission (TWC)

Primary agency for employment law in Texas

General Information:

Website: https://www.twc.texas.gov/
Main Phone: 512-463-2222
Toll-Free: 800-939-6631
Address: 101 E. 15th Street, Austin, TX 78778

Wage and Hour Program:

Website: https://www.twc.texas.gov/programs/wage-and-hour
Payday Law (wage claims)
Minimum wage information
Child labor law

Civil Rights Division:

Website: https://www.twc.texas.gov/programs/civil-rights
Phone: 888-452-4778
Employment discrimination complaints
TCHRA enforcement

Unemployment Benefits:

Website: https://www.twc.texas.gov/jobseekers
UI claims and eligibility

Employer Resources:

Website: https://efte.twc.texas.gov/
Texas Guidebook for Employers
Employment law information line: 800-832-9394

Texas Department of Insurance – Division of Workers’ Compensation (TDI-DWC)

Workers’ compensation system administration

General Information:

Website: https://www.tdi.texas.gov/wc/
Main Phone: 512-804-4000
Toll-Free: 800-252-7031
Address: 7551 Metro Center Drive, Suite 100, Austin, TX 78744

For Employees:

Report work injury: https://www.tdi.texas.gov/wc/employee/
Benefits information: https://www.tdi.texas.gov/wc/employee/benefits.html
Find healthcare provider
File complaint about benefits

For Employers:

Coverage information: https://www.tdi.texas.gov/wc/employer/coverage.html
Non-subscriber requirements
Forms and publications
Safety and loss prevention

Coverage Verification:

Certificate of coverage database
Non-subscriber list

Texas Comptroller of Public Accounts

Tax administration

General Information:

Website: https://comptroller.texas.gov/
Toll-Free: 800-252-5555
Austin Office: 512-463-4600
Address: 111 E. 17th Street, Austin, TX 78774

Business Taxes:

Franchise Tax (margin tax)
Sales and Use Tax
Other business taxes

Federal Agencies

U.S. Department of Labor (DOL)

Wage and Hour Division (WHD)

National Contact:

Website: https://www.dol.gov/agencies/whd
Toll-Free: 866-487-9243

Texas District Offices:

Dallas District Office

Phone: 972-850-4600
Address: 525 S. Griffin Street, Room 840, Dallas, TX 75202

Houston District Office

Phone: 713-718-4700
Address: 801 Travis Street, Room 945, Houston, TX 77002

Resources:

FLSA information and fact sheets
Overtime calculator
File complaint
Know your rights

Occupational Safety and Health Administration (OSHA)

National Contact:

Website: https://www.osha.gov/
Toll-Free: 800-321-6742

Texas Area Offices:

Dallas Regional Office

Phone: 972-850-4145
Address: 525 S. Griffin Street, Room 602, Dallas, TX 75202

Fort Worth Area Office

Phone: 817-428-2470

Houston South Area Office

Phone: 281-286-0583

Resources:

Safety standards and regulations
Report workplace hazards
File OSHA complaint

Equal Employment Opportunity Commission (EEOC)

Federal anti-discrimination enforcement

National Contact:

Website: https://www.eeoc.gov/
Phone: 800-669-4000
TTY: 800-669-6820

Texas District Offices:

Dallas District Office

Phone: 214-253-2700
Address: 207 S. Houston Street, 3rd Floor, Dallas, TX 75202

Houston District Office

Phone: 713-651-7861
Address: 1919 Smith Street, 7th Floor, Houston, TX 77002

San Antonio Field Office

Phone: 210-281-7600
Address: 5410 Fredericksburg Road, Suite 200, San Antonio, TX 78229

Resources:

File discrimination charge (online or in person)
Know your rights posters and fact sheets
Employer guidance

Internal Revenue Service (IRS)

Federal tax administration

General Information:

Website: https://www.irs.gov/
Individual Tax: 800-829-1040
Business Tax: 800-829-4933

Resources:

Forms and publications
Tax filing information
Payment options
Taxpayer Advocate Service: 877-777-4778

Relevant Publications:

Publication 587: Business Use of Your Home
Publication 15: Employer’s Tax Guide
Publication 15-A: Employer’s Supplemental Tax Guide

Professional Associations and Referrals

State Bar of Texas

Attorney referral and legal information

General Information:

Website: https://www.texasbar.com/
Lawyer Referral Service: 800-204-2222
Main Office: 512-427-1463
Address: 1414 Colorado Street, Austin, TX 78711

Practice Areas Relevant to Employment:

Employment Law
Workers’ Compensation
Tax Law
Civil Rights Law
Labor Law

Finding an Attorney:

Online directory: https://www.texasbar.com/Content/NavigationMenu/ForThePublic/FindaLawyer/default.htm
Lawyer Referral Service connects you with qualified attorneys

Texas Society of Certified Public Accountants

CPA referral and information

General Information:

Website: https://www.tscpa.org/
Toll-Free: 800-428-0272
Local: 972-687-8550

Services:

CPA directory
Tax resources
Financial planning information

Society for Human Resource Management (SHRM)

HR professional resources

General Information:

National Website: https://www.shrm.org/
Texas State Council: https://www.txshrm.org/

Resources:

HR guidance and templates
Compliance information
Professional development
Local chapter connections

Legal Aid Organizations

For individuals who cannot afford an attorney:

Texas RioGrande Legal Aid (TRLA)

General Information:

Website: https://www.trla.org/
Intake Line: 888-988-9996
Services in 68 Texas counties

Practice Areas:

Employment law
Workers’ rights
Discrimination
Wage claims

Lone Star Legal Aid

General Information:

Website: https://www.lonestarlegal.org/
Intake Line: 800-733-8394
Services in Houston and surrounding areas

Practice Areas:

Employment law
Civil rights
Consumer law

Texas Law Help

Self-help legal information

Website: https://texaslawhelp.org/
Free legal information
Self-help forms
Referrals to legal aid

Pro Bono Services

Many county bar associations offer:

Free legal clinics
Reduced-fee programs
Attorney referrals

Contact your local county bar association for information.

Note on Resources: Contact information, websites, and services may change. If a link does not work, search for the organization name to find current information. These resources are provided for informational purposes only and do not constitute endorsement. Always verify current information directly with the agency or organization.

Frequently Asked Questions (FAQ)

General Employment Questions
Q: Is Texas an “at-will” employment state?
A: According to Texas law, yes. Texas generally follows the employment-at-will doctrine. This means that either the employer or the employee may generally terminate the employment relationship at any time, for any reason or no reason, with or without notice, unless:
- There is an employment contract stating otherwise
- The termination violates law (e.g., discrimination, retaliation)
- Public policy exceptions apply
However, there are many exceptions to at-will employment. Consult an employment attorney if you have specific questions about termination.
Q: Am I an employee or an independent contractor?
A: The determination of whether you are an employee or independent contractor depends on multiple factors and may differ depending on the purpose (unemployment insurance, workers’ compensation, tax, wage and hour).
Generally, factors examined may include:
- Level of control employer has over how work is performed
- Whether worker has opportunity for profit or loss
- Worker’s investment in equipment and materials
- Permanency of relationship
- Degree of skill required
- Whether work is integral to employer’s business
For detailed information, see Part 1 of this guide. For official determinations:
- Tax status: Contact IRS (800-829-1040)
- Unemployment: Contact TWC (800-939-6631)
- Wage/hour: Contact DOL (866-487-9243)
- Workers’ comp: Contact TDI-DWC (800-252-7031)
Wage and Hour Questions
Q: What is the minimum wage in Texas?
A: According to Texas law, the Texas minimum wage is $7.25 per hour, which is the same as the federal minimum wage. This rate has not changed since July 24, 2009.
For tipped employees, the cash wage requirement is $2.13 per hour, but total compensation (wages plus tips) must reach at least $7.25 per hour.
Q: Am I entitled to overtime pay?
A: According to the federal Fair Labor Standards Act (FLSA), non-exempt employees must generally be paid 1.5 times their regular rate for hours worked over 40 in a workweek.
Whether you are exempt from overtime depends on:
- Salary level (generally $684 per week as of December 2025)
- Salary basis (paid a fixed amount regardless of hours or quality of work)
- Job duties (executive, administrative, professional, or other exemptions)
Texas does not have daily overtime requirements. Overtime is calculated weekly only.
For specific questions, contact:
- DOL Wage and Hour Division: 866-487-9243
- TWC: 800-939-6631
- Employment attorney
See Part 2 of this guide for detailed information.
Q: Is my employer required to give me breaks or a lunch period?
A: No. Texas law does not require employers to provide meal breaks or rest breaks for adult employees.
However, according to federal law:
- If employer provides short breaks (typically 5-20 minutes), they must generally be paid
- If employer provides meal breaks (typically 30 minutes or more), they may be unpaid if employee is completely relieved of duties
Nursing mothers may be entitled to reasonable break time to express milk under federal law.
See Part 2 of this guide for more information.
Leave Questions
Q: Am I entitled to paid sick leave?
A: No. Texas does not have a law requiring employers to provide paid sick leave.
The federal Family and Medical Leave Act (FMLA) provides unpaid leave for certain qualifying reasons, but only if:
- Your employer has 50 or more employees within 75 miles
- You have worked for employer for at least 12 months
- You have worked at least 1,250 hours in the past 12 months
- You have a qualifying reason (serious health condition, new child, military family leave, etc.)
Some employers voluntarily provide paid sick leave. Check your employer’s policies.
See Part 4 of this guide for FMLA details.
Q: Can I take time off to care for a sick family member?
A: Texas law does not provide paid family leave. However, the federal FMLA may entitle you to unpaid leave if:
- You meet FMLA eligibility requirements (see above)
- You have a qualifying reason, which includes caring for a spouse, child, or parent with a serious health condition
- FMLA provides up to 12 weeks of unpaid leave per year (26 weeks for military caregiver leave)
Consult with your employer’s HR department or contact DOL at 866-487-9243 for FMLA questions.
Workers’ Compensation Questions
Q: Does my employer have workers’ compensation insurance?
A: Texas is unique in that workers’ compensation insurance is generally voluntary for private employers.
To verify whether your employer has coverage:
- Check TDI-DWC Certificate of Coverage database: https://www.tdi.texas.gov/wc/
- Ask your employer directly
- Look for workplace postings
If your employer is a “subscriber” (has workers’ comp insurance):
- You may be entitled to workers’ comp benefits if injured on the job
- Benefits are provided regardless of fault
- Employer generally has immunity from lawsuits
If your employer is a “non-subscriber” (no workers’ comp insurance):
- You are not covered by workers’ compensation
- You may be able to sue employer for negligence if injured
- Employer cannot use traditional legal defenses
See Part 3 of this guide for detailed information.
Q: What should I do if I’m injured at work?
A: Take these steps:
1. Report injury to supervisor/employer immediately (written notice recommended)
2. Seek medical treatment
3. If employer is subscriber: File workers’ compensation claim with TDI-DWC
4. If employer is non-subscriber: Document everything and consider consulting personal injury attorney
For workers’ compensation questions, contact TDI-DWC at 800-252-7031.
See Part 3 of this guide for detailed guidance.
Discrimination and Rights Questions
Q: What types of discrimination are illegal in Texas?
A: Under federal law (Title VII, ADA, ADEA, etc.) and Texas law (TCHRA), it is generally illegal to discriminate based on:
- Race
- Color
- National origin
- Religion
- Sex (including pregnancy, sexual orientation, gender identity)
- Age (40 and older)
- Disability
- Genetic information
Discrimination includes:
- Hiring and firing decisions
- Compensation and benefits
- Harassment
- Retaliation for complaining about discrimination
To file a discrimination complaint:
- EEOC: 800-669-4000 or https://www.eeoc.gov/
- TWC Civil Rights Division: 888-452-4778
Time limits apply (typically 180-300 days). Act promptly.
See Part 4 of this guide for detailed information.
Q: What is harassment and is it illegal?
A: According to federal and Texas law, harassment based on protected characteristics (race, sex, religion, etc.) may constitute illegal discrimination if it:
- Is severe or pervasive enough to create a hostile work environment, OR
- Results in a tangible employment action (quid pro quo)
Harassment can include:
- Offensive jokes or comments
- Unwelcome physical contact
- Offensive images or objects
- Threats or intimidation
If you experience harassment:
1. Report to employer following company procedures
2. Document incidents
3. If not resolved, file complaint with EEOC (800-669-4000) or TWC (888-452-4778)
Consult an employment attorney for specific situations.
Q: Can my employer fire me for complaining about discrimination?
A: No. According to federal and Texas law, retaliation is illegal. Employers cannot take adverse action (firing, demotion, harassment) against employees for:
- Complaining about discrimination
- Filing a discrimination charge
- Participating in an investigation
- Opposing discriminatory practices
If you experience retaliation, file a complaint with:
- EEOC: 800-669-4000
- TWC Civil Rights Division: 888-452-4778
Consult an employment attorney.
Remote Work Questions
Q: Do I have a legal right to work remotely?
A: Generally, no. There is typically no legal right to work remotely under Texas or federal law.
Exceptions:
- If remote work is needed as a reasonable accommodation for a disability under the ADA
- If you have an employment contract guaranteeing remote work
- In some limited circumstances
Remote work is typically at employer’s discretion. Employers may:
- Deny remote work requests
- Require employees to work on-site
- Terminate remote work arrangements
If you need remote work as a disability accommodation, engage in the interactive process with your employer and consult an employment attorney if needed.
Q: Can my employer monitor me while I work from home?
A: Generally, yes. Texas law generally allows employers to monitor employee work activities, including:
- Computer usage
- Email and internet activity
- Work hours
- Video surveillance (with some limitations)
- GPS tracking of company devices
Best practices for employers include:
- Clear written policies about monitoring
- Notice to employees
- Reasonable monitoring related to legitimate business purposes
If you have concerns about privacy, consult an attorney. Certain types of monitoring (e.g., in private areas like bathrooms) may be illegal.
Q: Must my employer pay for my home internet and equipment?
A: No. Texas law does not specifically require employers to reimburse remote workers for equipment, internet, or phone costs.
Under federal law (FLSA):
- Business expenses cannot reduce wages below minimum wage
- For most remote workers earning above minimum wage, reimbursement is not required by law
Many employers voluntarily provide:
- Laptops and equipment
- Internet stipends
- Phone reimbursement
Check your employer’s policies. If expenses would cause you to earn less than minimum wage, contact DOL at 866-487-9243.
Tax Questions
Q: Do I have to pay Texas state income tax?
A: No. Texas does not have a state income tax on wages or salaries. This is a major advantage for Texas residents.
You do need to pay:
- Federal income tax
- Social Security and Medicare taxes (FICA)
Q: I work remotely for an out-of-state company. Where do I pay taxes?
A: Generally:
- If you live in Texas and perform all work from Texas: You typically pay only federal tax (no Texas state tax, no other state tax)
- If you live in another state: You typically pay tax to your home state
Exception – “Convenience of Employer” States:
- New York, Pennsylvania, Delaware, Connecticut, and Nebraska have special rules
- These states may tax you based on employer location even if you work remotely from elsewhere
- This is complex – consult a tax professional
See Part B of this guide (Tax Information) for detailed scenarios.
Consult a CPA or tax attorney for specific situations. Do not rely on general information for tax decisions.
Q: Can I deduct my home office expenses?
A: It depends on your employment status:
W-2 Employees: NO. The Tax Cuts and Jobs Act of 2017 eliminated the home office deduction for W-2 employees through 2025.
Self-Employed/Independent Contractors: YES, if you meet requirements:
- Regular and exclusive use of home space for business
- Home office is principal place of business
- Used in trade or business
For details: IRS Publication 587 or consult a tax professional.
Getting Help
Q: I think my employer violated my rights. What should I do?
A: Take these steps:
1. Document Everything:
  - Dates, times, witnesses
  - Emails, texts, written communications
  - Policies that may have been violated
2. Report Internally (if safe to do so):
  - Follow company complaint procedures
  - Report to HR or supervisor
  - Keep copies of reports
3. Contact Appropriate Agency:
  - Wage violations: TWC (800-939-6631) or DOL (866-487-9243)
  - Discrimination: EEOC (800-669-4000) or TWC Civil Rights (888-452-4778)
  - Workers’ comp: TDI-DWC (800-252-7031)
  - Safety: OSHA (800-321-6742)
4. Consult an Attorney:
  - Employment law attorney
  - State Bar of Texas referral: 800-204-2222
  - Legal aid if you cannot afford attorney (see Resources section)
5. Act Promptly:
  - Many legal claims have strict deadlines (180-300 days common)
  - Do not delay
Q: Where can I find an employment lawyer?
A: Resources for finding an attorney:
- State Bar of Texas Lawyer Referral Service: 800-204-2222
- Texas State Bar website: https://www.texasbar.com/
- Legal aid organizations (if you cannot afford an attorney):
  - Texas RioGrande Legal Aid: 888-988-9996
  - Lone Star Legal Aid: 800-733-8394
  - Texas Law Help: https://texaslawhelp.org/
When consulting an attorney, bring:
- All relevant documents
- Timeline of events
- List of witnesses
- Questions you want answered
Many attorneys offer free initial consultations.
Q: I can’t afford an attorney. What are my options?
A: Options for those who cannot afford an attorney:
1. Legal Aid Organizations:
  - Texas RioGrande Legal Aid: 888-988-9996
  - Lone Star Legal Aid: 800-733-8394
  - Check eligibility (typically based on income)
2. Free Legal Clinics:
  - Many county bar associations offer free clinics
  - Contact your local bar association
3. Self-Help Resources:
  - Texas Law Help: https://texaslawhelp.org/
  - Forms and guidance
4. Government Agencies:
  - Many agencies (TWC, EEOC, DOL) will investigate complaints at no cost
  - File complaint directly with appropriate agency
5. Contingency Fee Attorneys:
  - Some employment attorneys work on contingency (get paid only if you win)
  - Ask about this option during free consultations

Others

Legal Disclaimer: This guide provides general background information only and does not constitute legal, tax, or professional advice. Employment laws are complex and subject to interpretation. Consult licensed legal counsel and official state agencies for guidance specific to your situation.

Texas Remote Work Laws 2026

⚠️Informational only — not legal or tax advice.

Table of Contents

Overview

Key Legal Framework

Official State Agency Information

Major State Employment Statutes

1. Texas Labor Code – Title 2 (General Labor Regulations)

2. Texas Workers’ Compensation Act

3. Texas Commission on Human Rights Act

4. Federal Laws Applicable in Texas

Employee Classification Standards in Texas

Texas’s Classification Framework

Classification for Unemployment Compensation

Remote Work Classification Considerations

Potential Consequences of Misclassification

How to Seek Guidance on Classification

Minimum Wage Information for Texas

Current Rate Information (As Published by Texas Workforce Commission)

Application to Remote Workers

Local Minimum Wages

Tipped Employee Provisions

Youth and Training Wage Provisions

Exemptions and Special Provisions

Enforcement and Remedies

Overtime and Break Regulations in Texas

A. OVERTIME STANDARDS

Governing Framework

General Overtime Threshold

Application to Remote Workers

Recent Overtime Rule Changes – CRITICAL UPDATE

Calculating Compensable Time for Remote Workers

Overtime Exemptions

Executive, Administrative, and Professional (EAP) Exemptions

Computer Employee Exemption

Highly Compensated Employee (HCE) Exemption

Other Common Exemptions

Remote Work and Exemption Status

B. MEAL AND REST BREAK REQUIREMENTS

Texas’s Break Standards

Federal Break Standards

What This Means for Texas Employers and Employees

Nursing Mother Break Requirements

Application to Remote Workers

Practical Challenges for Remote Work

One Day of Rest Per Week (Retail Workers)

Paid Sick Leave in Texas

No State-Mandated Paid Sick Leave

No Local Paid Sick Leave Ordinances Currently in Effect

Voluntary Employer-Provided Sick Leave

Federal Leave Protections

Family and Medical Leave Act (FMLA)

Americans with Disabilities Act (ADA)

Best Practices for Remote Workers (Recommendations Only)

Workers' Compensation Overview for Texas

Legal Framework

Texas’s Unique Voluntary System

Exceptions: Mandatory Coverage Situations

1. Government Entities

2. Building and Construction Contractors on Public Projects

3. Certain Motor Carriers

Understanding “Subscribers” vs. “Non-Subscribers”

SUBSCRIBERS (Employers with Workers’ Compensation Coverage)

NON-SUBSCRIBERS (Employers Without Coverage)

Non-Subscriber Reporting Requirements

1. File Annual Notice (DWC Form-005)

2. Notify Employees

3. Report Workplace Injuries

Benefits Generally Available Under Workers’ Compensation (For Subscribers)

1. Medical Benefits

2. Income Benefits

Temporary Income Benefits (TIBs)

Impairment Income Benefits (IIBs)

Supplemental Income Benefits (SIBs)

Lifetime Income Benefits (LIBs)

3. Death Benefits

4. Vocational Rehabilitation

Remote Work and Workers’ Compensation

General Coverage Principles (For Subscribers)

Factors That May Be Considered