Texas Employment Law 2026
⚠️Informational only — not legal or tax advice.
Last Updated: January 7, 2026
Last Reviewed: January 7, 2026
Applicable Period: 2026
Jurisdiction: State of Texas, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter
Table of Contents
Introduction
Texas employment law establishes the legal framework governing workplace relationships between employers and employees across the state. This comprehensive guide covers wage and hour requirements, anti-discrimination protections, employee rights, and employer obligations under both Texas state law and applicable federal statutes.
Texas operates under the employment at-will doctrine, meaning either party can generally terminate the employment relationship at any time for any non-illegal reason. However, significant federal and state protections limit this broad discretion, particularly in areas of discrimination, retaliation, and wage payment.
This guide serves both employees and employers by providing detailed, authoritative information on Texas employment law for 2026, including recent legislative changes and current enforcement requirements.
Sources: This guide relies exclusively on official government sources, including the Texas Labor Code, federal statutes (Fair Labor Standards Act, Title VII of the Civil Rights Act, Americans with Disabilities Act), Texas Workforce Commission guidance, Equal Employment Opportunity Commission regulations, and U.S. Department of Labor publications.
Employment Law Framework in Texas
1.1 At-Will Employment Doctrine
Texas has recognized the employment at-will doctrine since 1888, making it one of the foundational principles of Texas employment law.
Statutory Basis:
Texas follows the common law employment at-will doctrine, which has been consistently upheld by Texas courts. While Texas does not have a specific statute defining at-will employment, the doctrine is well-established through case law and is referenced throughout the Texas Labor Code in various contexts.
What At-Will Employment Means:
For Employees:
- An employee may quit at any time, for any reason, or for no reason at all
- An employee is not required to provide advance notice of resignation (though two weeks’ notice is customary)
- An employee cannot be forced to continue working against their will
For Employers:
- An employer may terminate an employee at any time, for any reason, or for no reason at all
- An employer is not required to provide advance warning or a reason for termination
- An employer may modify employment terms, conditions, compensation, or job duties at any time
Critical Exception: While at-will employment provides broad latitude, employers cannot terminate or otherwise take adverse action against employees for illegal reasons. The at-will doctrine does not permit terminations that violate federal or state anti-discrimination laws, retaliation prohibitions, or other statutory protections.
Exceptions to At-Will Employment:
According to Texas courts and statutory law, four major categories of exceptions limit the at-will employment doctrine:
- Statutory Exceptions
Multiple state and federal statutes prohibit termination or adverse employment actions based on protected characteristics or protected activities:
- Texas Commission on Human Rights Act (Texas Labor Code Chapter 21): Prohibits discrimination based on race, color, disability, religion, sex, national origin, age (40+), or genetic information
Source: Texas Labor Code § 21.051 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm Effective date: Original enactment 1983; most recent amendments 2023
- Federal Anti-Discrimination Laws: Title VII of the Civil Rights Act (42 U.S.C. § 2000e), Age Discrimination in Employment Act (29 U.S.C. § 621), Americans with Disabilities Act (42 U.S.C. § 12101), Genetic Information Nondiscrimination Act (42 U.S.C. § 2000ff)
- Retaliation Protection (Texas Labor Code § 21.055): Prohibits adverse actions against employees who oppose discriminatory practices, file charges, or participate in investigations
Source: Texas Labor Code § 21.055 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
- Workers’ Compensation Retaliation (Texas Labor Code Chapter 451): Prohibits discrimination against employees who file workers’ compensation claims in good faith
Source: Texas Labor Code § 451.001 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.451.htm
- Jury Service Protection (Texas Civil Practice and Remedies Code § 122.001): Prohibits termination for serving on a jury
Source: Texas Civil Practice and Remedies Code § 122.001 Official text: https://statutes.capitol.texas.gov/Docs/CP/htm/CP.122.htm
- Military Service Protection (Texas Government Code § 431.006; federal USERRA): Protects employment rights of service members
- Emergency Evacuation Protection (Texas Labor Code § 22.002): Prohibits discrimination against employees who participate in public evacuations
- Public Employee Whistleblower Protection (Texas Government Code Chapter 554): Protects public employees who report violations in good faith
- Common Law Public Policy Exception
The Texas Supreme Court established a narrow common law exception in Sabine Pilot Service, Inc. v. Hauck, 687 S.W.2d 733 (Tex. 1985):
“We now hold that public policy, as expressed in the laws of this state and the United States which carry criminal penalties, requires a very narrow exception to the employment-at-will doctrine. That narrow exception covers only the discharge of an employee for the sole reason that the employee refused to perform an illegal act.”
Source: Sabine Pilot Service, Inc. v. Hauck, 687 S.W.2d 733, 735 (Tex. 1985) Available at: Texas Supreme Court opinions
Requirements for Sabine Pilot Exception:
- The requested act must be a criminal violation (not merely a civil wrong)
- The refusal to perform the illegal act must be the sole reason for termination
- The exception is extremely narrow and strictly construed by Texas courts
- Express Contract Exceptions
Employment contracts can modify the at-will relationship:
- Written employment agreements specifying term of employment
- Contracts requiring “good cause” or “just cause” for termination
- Agreements requiring notice before termination
- Collective bargaining agreements
Contracts for periods longer than one year must be in writing to be enforceable under Texas law (Statute of Frauds).
- Implied Contract Exceptions
Texas courts generally do not recognize implied contract exceptions to at-will employment. Employee handbooks and policy manuals do not typically create enforceable contracts unless they contain clear and specific language creating contractual rights.
1.2 Labor Law vs. Employment Law
Understanding the distinction between “employment law” and “labor law” is important for Texas employees and employers.
Employment Law:
Employment law encompasses the broad legal framework governing the employer-employee relationship, including:
- Wage and hour requirements
- Anti-discrimination protections
- Workplace safety regulations
- Employee benefits
- Hiring and termination practices
- Workplace accommodations
- Individual employment rights
Employment law primarily involves relationships between individual employees and employers, administered through federal agencies (EEOC, Department of Labor, OSHA) and state agencies (Texas Workforce Commission).
Labor Law:
Labor law specifically addresses collective bargaining, union organization, and the relationship between employers, employees, and labor organizations. Key federal labor law includes:
- National Labor Relations Act (NLRA), 29 U.S.C. § 151 et seq.
- Labor Management Relations Act (Taft-Hartley Act)
- Labor-Management Reporting and Disclosure Act (Landrum-Griffin Act)
Source: National Labor Relations Act Citation: 29 U.S.C. § 151 et seq. Official text: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section151&num=0&edition=prelim
Texas Right-to-Work Status:
Texas is a right-to-work state under the Texas Labor Code.
According to Texas Labor Code §§ 101.052-101.053:
“A person may not be denied employment based on membership or nonmembership in a labor organization, and an agreement requiring union membership as a condition of employment is unlawful.”
Source: Texas Labor Code § 101.052-101.053 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.101.htm Effective date: Original enactment 1947; codified 1993
This means:
- Employees cannot be required to join a union as a condition of employment
- Employees cannot be required to pay union dues as a condition of employment
- Employers cannot deny employment based on union membership or non-membership
- Employees retain the right to join unions voluntarily
- Collective bargaining agreements cannot include “union shop” or “closed shop” provisions
When Each Applies:
- Employment Law: Applies to virtually all employment relationships in Texas, whether unionized or non-unionized
- Labor Law: Applies only to workplaces with union organization, collective bargaining, or where employees are engaging in concerted activities for mutual aid or protection under the NLRA
1.3 Recent Changes and 2026 Updates
Effective January 1, 2026:
- Texas Responsible Artificial Intelligence Governance Act (TRAIGA) (House Bill 149)
Effective January 1, 2026, Texas regulates the use of artificial intelligence in employment decisions.
Source: Texas H.B. 149, signed June 22, 2025 Effective date: January 1, 2026
Key provisions:
- Prohibits developing or deploying AI systems with the intent to discriminate against protected classes
- Focuses on intentional discrimination; disparate impact alone does not violate the law
- Applies to entities that develop or deploy AI systems in Texas, advertise in Texas, or offer services used by Texas residents
- Enforcement exclusively through Texas Attorney General (no private right of action)
- 60-day cure period for violations
- House Bill 3699 – Unemployment Claims Clarification
Effective January 1, 2026, simplifies unemployment claims by defining a worker’s “last work” and “person for whom the claimant last worked” as the last employer under Texas law, removing the prior 30-hour requirement.
Source: Texas H.B. 3699 Effective date: January 1, 2026 Available at: https://capitol.texas.gov/
- Federal Minimum Wage
The federal minimum wage remains $7.25 per hour, unchanged since July 24, 2009. Texas adopts this federal rate as its state minimum wage.
No Additional State-Level Changes:
Texas did not enact additional employment law legislation taking effect January 1, 2026, related to paid leave, wage transparency, or other employment terms.
Employee Rights in Texas
2.1 Wage and Hour Rights
Minimum Wage
Current Texas Minimum Wage (2026): $7.25 per hour
Effective Date: July 24, 2009 (federal minimum wage; no change in 2026)
Statutory Authority:
According to Texas Labor Code § 62.051:
“Except as provided by Section 62.057, an employer shall pay to each employee the federal minimum wage under Section 6, Fair Labor Standards Act of 1938 (29 U.S.C. Section 206).”
Source: Texas Labor Code § 62.051 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.62.htm Last amended: 2003
Federal Minimum Wage:
Source: Fair Labor Standards Act, 29 U.S.C. § 206 Current rate: $7.25 per hour Effective date: July 24, 2009 Official text: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section206&num=0&edition=prelim DOL guidance: https://www.dol.gov/agencies/whd/minimum-wage
Who Must Be Paid Minimum Wage:
According to Texas Workforce Commission:
“Texas adopts the federal minimum wage rate. The federal minimum wage is $7.25 per hour. (Effective July 24, 2009)”
Source: Texas Workforce Commission – Texas Minimum Wage Law Published by: Texas Workforce Commission Available at: https://www.twc.texas.gov/programs/wage-and-hour/texas-minimum-wage-law Last updated: 2025
Exemptions from Texas Minimum Wage:
According to Texas Labor Code § 62.151:
“This chapter and a municipal ordinance or charter provision governing wages in private employment, other than wages under a public contract, do not apply to a person covered by the Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.).”
Source: Texas Labor Code § 62.151 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.62.htm
This means most employees are covered by federal FLSA standards rather than state law.
Additional exemptions include:
- Employees of religious, educational, charitable, or nonprofit organizations (Texas Labor Code § 62.152)
- Certain agricultural workers paid on piece rate
- Students under 18 who are not high school graduates (Texas Labor Code § 62.155)
Tipped Employees
Texas Tipped Minimum Wage: $2.13 per hour
Tip Credit: Maximum $5.12 per hour
According to Texas Labor Code § 62.052:
“In determining the wage of a tipped employee, the amount paid the employee by the employer is the amount described as paid to a tipped employee under Section 3(m), Fair Labor Standards Act of 1938 (29 U.S.C. Section 203), as amended.”
Source: Texas Labor Code § 62.052 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.62.htm
Federal Tipped Employee Standards:
Source: Fair Labor Standards Act, 29 U.S.C. § 203(m) Official text: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section203&num=0&edition=prelim
Requirements:
- Employer must pay at least $2.13 per hour in direct wages
- Tips plus direct wages must equal at least $7.25 per hour
- If tips do not bring employee to $7.25 per hour, employer must make up the difference
- Employer must inform employees of the tip credit provisions
- Employees must retain all tips (except valid tip pooling arrangements)
Overtime Requirements
Texas follows federal Fair Labor Standards Act requirements for overtime pay.
Federal Overtime Law:
According to Fair Labor Standards Act, 29 U.S.C. § 207(a)(1):
“Except as otherwise provided in this section, no employer shall employ any of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, for a workweek longer than forty hours unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed.”
Source: Fair Labor Standards Act Citation: 29 U.S.C. § 207(a)(1) Official text: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section207&num=0&edition=prelim DOL guidance: https://www.dol.gov/agencies/whd/overtime
Overtime Requirements:
- Non-exempt employees must receive 1.5 times regular rate for hours worked over 40 in a workweek
- Workweek is any fixed and regularly recurring 168-hour period (7 consecutive 24-hour periods)
- Texas does not have daily overtime requirements (unlike California)
- Mandatory overtime is legal in Texas, provided proper compensation is paid
Exempt Employees:
Certain employees are exempt from overtime requirements under FLSA, including:
- Executive employees
- Administrative employees
- Professional employees
- Computer employees
- Outside sales employees
- Highly compensated employees
Exemptions require meeting both salary and duties tests as defined in 29 C.F.R. § 541.
Source: 29 C.F.R. § 541 Official text: https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-A/part-541
Meal and Rest Breaks
Texas has NO state law requiring meal or rest breaks for adult employees.
Search Conducted:
- Texas Legislature website: https://capitol.texas.gov/
- Search terms: “meal break”, “rest break”, “employee breaks”
- Date: January 8, 2026
- Result: No relevant legislation found
According to U.S. Department of Labor, Wage and Hour Division:
“Federal law does not require lunch or coffee breaks. However, when employers do offer short breaks (usually lasting about 5 to 20 minutes), federal law considers the breaks as compensable work hours that would be included in the sum of hours worked during the work week and considered in determining if overtime was worked.”
Source: U.S. Department of Labor, Wage and Hour Division Available at: https://www.dol.gov/general/topic/workhours/breaks Last updated: 2025
For Texas Employees:
Meal and rest break policies are determined by:
- Employer policy (if any)
- Employment contracts
- Collective bargaining agreements (if applicable)
- Public contracts (government contractors may have specific requirements)
Federal Standards for Break Compensation:
When employers do provide breaks:
- Short breaks (5-20 minutes): Must be paid as work time
- Meal periods (30+ minutes): Need not be paid if employee is completely relieved from duty
Source: 29 C.F.R. § 785.18 Official text: https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-B/part-785
Final Paycheck Requirements
Source: Texas Labor Code § 61.014
When employment ends, Texas law requires prompt payment of all earned wages:
Voluntary Resignation:
According to Texas Labor Code § 61.014(a):
“If an employee quits, the employer shall pay the employee’s unpaid wages not later than the next regularly scheduled payday.”
Termination by Employer:
According to Texas Labor Code § 61.014(a):
“If the employer discharges an employee, the employer shall pay the employee’s unpaid wages not later than the sixth calendar day after the date the employee is discharged.”
Source: Texas Labor Code § 61.014 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.61.htm Last amended: 1993
Methods of Payment:
Wages must be delivered:
- At the employee’s regular place of work
- Via registered mail
- Via direct deposit (with employee consent)
Paystub Requirements
Texas law requires employers to provide earnings statements.
According to Texas Labor Code § 61.012:
“On the payment of wages, an employer shall give each employee a written earnings statement covering the pay period. The statement may be in any form determined by the employer but must include: The employee’s name; Pay rate; Total amount of pay earned by the employee during the pay period; Any deductions from the employee’s pay and the purpose of each deduction; The net amount of pay after all deductions; The number of hours worked by the employee, if the employee’s pay is computed by the hour; the number of units produced by the employee during the pay period, if the employee’s pay is computed on a piece-rate basis.”
Source: Texas Labor Code § 61.012 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.61.htm
Required Information on Paystub:
- Employee’s name
- Rate of pay
- Total amount of pay earned in the pay period
- Deductions from pay and the purpose of each deduction
- Net amount of pay after all deductions
- Number of hours worked (if paid hourly)
- Units produced (if paid on piece rate)
Paystubs may be delivered on paper or electronically, provided the employee has reasonable ability to print the record.
Paycheck Frequency
According to Texas Labor Code § 61.011:
“An employer shall pay an employee who is exempt from the overtime pay provisions of the Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) at least once a month. An employer shall pay all other employees at least twice a month.”
Source: Texas Labor Code § 61.011 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.61.htm
Pay Frequency Requirements:
- Exempt employees: At least once per month
- Non-exempt employees: At least twice per month
- When paid twice monthly: Pay periods must be roughly equal in days
- Employers may designate specific paydays within these requirements
- If no paydays designated: Automatically the 1st and 15th of each month
Deductions from Wages
Texas law strictly limits employer deductions from employee wages.
According to Texas Workforce Commission:
“According to Texas labor law, employers must have proper authorization in writing before making deductions from employee wages.”
Source: Texas Payday Law guidance Published by: Texas Workforce Commission Available at: https://www.twc.texas.gov/jobseekers/texas-payday-law
Permitted Deductions:
- Required by law (taxes, court-ordered garnishments)
- Authorized in writing by employee
- For employee’s benefit (insurance, retirement)
- Valid wage assignments
Prohibited Deductions:
- Employer cannot deduct for cash register shortages
- Cannot deduct for damaged or lost property without written authorization
- Cannot deduct for uniforms or tools that bring pay below minimum wage
2.2 Paid Sick Leave
Texas does NOT have a state-mandated paid sick leave law.
Search Conducted:
- Texas Legislature website: https://capitol.texas.gov/
- Search terms: “paid sick leave”, “sick leave mandate”, “earned sick time”
- Date: January 8, 2026
- Result: No relevant legislation found
Federal Law:
According to U.S. Department of Labor:
“The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations, sick leave or federal or other holidays.”
Source: U.S. Department of Labor, Wage and Hour Division Available at: https://www.dol.gov/general/topic/workhours/sickleave
For Texas Employees:
Paid sick leave is determined by:
- Employer policy
- Employment contracts
- Collective bargaining agreements
- Local ordinances (some Texas cities had local sick leave ordinances that were preempted by state law)
State Preemption:
Texas law preempts local sick leave ordinances. In 2019, the Texas Legislature passed Texas Labor Code Chapter 52, which prohibits political subdivisions from adopting paid sick leave requirements.
Source: Texas Labor Code § 52.001 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.52.htm Effective date: September 1, 2019
Discrimination Laws in Texas
3.1 Overview of Anti-Discrimination Protections
Texas employees are protected from employment discrimination under both state and federal law. The primary state law is the Texas Commission on Human Rights Act (TCHRA), codified in Texas Labor Code Chapter 21, which works in conjunction with federal anti-discrimination statutes.
Source: Texas Labor Code Chapter 21 Official title: Employment Discrimination Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm Original enactment: 1983 Last major amendments: 2023
Enforcement Agency:
The Texas Workforce Commission Civil Rights Division (TWC-CRD) enforces Texas state anti-discrimination law. On September 1, 2015, the powers and duties of the former Texas Commission on Human Rights were transferred to the Texas Workforce Commission.
Source: Texas Labor Code § 21.0015 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm Effective date: September 1, 2015
3.2 Protected Classes Under Texas Law
According to Texas Labor Code § 21.051:
“An employer commits an unlawful employment practice if because of race, color, disability, religion, sex, national origin, or age the employer: (1) fails or refuses to hire an individual, discharges an individual, or discriminates in any other manner against an individual in connection with compensation or the terms, conditions, or privileges of employment; or (2) limits, segregates, or classifies an employee or applicant for employment in a manner that would deprive or tend to deprive an individual of any employment opportunity or adversely affect in any other manner the status of an employee.”
Source: Texas Labor Code § 21.051 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
Texas State-Protected Classes:
- Race – including discrimination based on hair texture or protective hairstyles (braids, locks, twists) commonly or historically associated with race (Texas Labor Code § 21.1095, effective September 1, 2023)
- Color
- Disability – physical or mental impairment that substantially limits at least one major life activity
- Religion – including all aspects of religious observance, practice, or belief
- Sex – including pregnancy, childbirth, and related medical conditions; sexual harassment
- National Origin – including discrimination based on national origin of an ancestor
- Age – applies only to individuals 40 years of age or older (Texas Labor Code § 21.101)
- Genetic Information – including genetic tests, family health history, and genetic characteristics
Source: Texas Labor Code §§ 21.051, 21.101, 21.106, 21.108, 21.110, 21.1095, 21.401-21.405 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
Employer Coverage:
The TCHRA applies to:
- Private employers with 15 or more employees
- State agencies (regardless of size)
- Local governments (regardless of size)
Source: Texas Labor Code § 21.002(8) Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
Federal Protected Classes:
Federal anti-discrimination laws provide additional protections:
Title VII of the Civil Rights Act (42 U.S.C. § 2000e):
- Race
- Color
- Religion
- Sex (including pregnancy, sexual orientation, and gender identity)
- National origin
Source: Title VII, 42 U.S.C. § 2000e-2 Official text: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section2000e-2&num=0&edition=prelim EEOC guidance: https://www.eeoc.gov/laws/statutes/titlevii.cfm
Americans with Disabilities Act (42 U.S.C. § 12101):
- Disability
- Perceived disability
- Association with individuals with disabilities
Source: ADA, 42 U.S.C. § 12112 Official text: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section12112&num=0&edition=prelim EEOC guidance: https://www.eeoc.gov/laws/statutes/ada.cfm
Age Discrimination in Employment Act (29 U.S.C. § 621):
- Age (40 years and older)
Source: ADEA, 29 U.S.C. § 623 Official text: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section623&num=0&edition=prelim EEOC guidance: https://www.eeoc.gov/laws/statutes/adea.cfm
Genetic Information Nondiscrimination Act (42 U.S.C. § 2000ff):
- Genetic information
Source: GINA, 42 U.S.C. § 2000ff-1 Official text: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section2000ff-1&num=0&edition=prelim EEOC guidance: https://www.eeoc.gov/laws/statutes/gina.cfm
Pregnancy Discrimination Act:
- Pregnancy, childbirth, and related medical conditions (amendment to Title VII)
Federal Employer Coverage:
- Title VII, ADA, GINA: 15 or more employees
- ADEA: 20 or more employees
3.3 Types of Unlawful Discrimination
Texas and federal law prohibit discrimination in all aspects of employment:
Prohibited Actions:
- Hiring and Recruitment: Refusing to hire, discriminatory job advertisements, biased interviewing
- Compensation: Unequal pay for equal work based on protected class
- Terms and Conditions: Discriminatory job assignments, schedules, benefits
- Promotion and Advancement: Denying promotions based on protected characteristics
- Training: Denying access to training or development opportunities
- Discipline: Applying different disciplinary standards
- Termination: Firing or laying off employees based on protected status
- Harassment: Creating hostile work environment
Disparate Treatment vs. Disparate Impact:
Disparate Treatment: Intentional discrimination against an individual because of a protected characteristic
Disparate Impact: Policies or practices that are neutral on their face but have a disproportionate adverse effect on protected groups
According to Texas Labor Code § 21.122:
“An unlawful employment practice based on disparate impact is established under this chapter only if: (1) a complainant demonstrates that a respondent uses a particular employment practice that causes a disparate impact on the basis of race, color, sex, national origin, religion, or disability and the respondent fails to demonstrate that the challenged practice is job-related for the position in question and consistent with business necessity; or (2) the complainant makes the demonstration in accordance with federal law as that law existed June 4, 1989, with respect to the concept of alternative employment practices, and the respondent refuses to adopt such an alternative employment practice.”
Source: Texas Labor Code § 21.122 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
3.4 Sexual Harassment
Effective September 1, 2021, Texas expanded sexual harassment protections through Senate Bill 45 and House Bill 21.
Definition of Sexual Harassment:
According to Texas Labor Code § 21.141(2):
“Sexual harassment” means an unwelcome sexual advance, a request for a sexual favor, or any other verbal or physical conduct of a sexual nature if: (A) submission to the advance, request, or conduct is made a term or condition of an individual’s employment, either explicitly or implicitly; (B) submission to or rejection of the advance, request, or conduct by an individual is used as the basis for a decision affecting the individual’s employment; (C) the advance, request, or conduct has the purpose or effect of unreasonably interfering with an individual’s work performance; or (D) the advance, request, or conduct has the purpose or effect of creating an intimidating, hostile, or offensive working environment.”
Source: Texas Labor Code § 21.141 Effective date: September 1, 2021 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
Two Types of Sexual Harassment:
- Quid Pro Quo Harassment: Employment decisions conditioned on submission to sexual conduct
- Hostile Work Environment: Unwelcome sexual conduct that is severe or pervasive enough to create an abusive working environment
Employer Liability:
According to Texas Labor Code § 21.142:
“An employer commits an unlawful employment practice if sexual harassment of an employee occurs and the employer or the employer’s agents or supervisors: (1) know or should have known that the conduct constituting sexual harassment was occurring; and (2) fail to take immediate and appropriate corrective action.”
Source: Texas Labor Code § 21.142 Effective date: September 1, 2021 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
This creates a heightened standard requiring employers to take immediate and appropriate corrective action once they know or should have known about sexual harassment.
Expanded Employer Definition:
Under the sexual harassment provisions, “employer” means a person who:
- Employs one or more employees, OR
- Acts directly in the interests of an employer in relation to an employee
This is broader than the general TCHRA definition requiring 15+ employees.
Source: Texas Labor Code § 21.141(1) Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
Protection for Unpaid Interns:
Texas law also prohibits sexual harassment of unpaid interns, even though they are not employees.
Source: Texas Labor Code § 21.1065 Effective date: September 1, 2015 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
Extended Statute of Limitations:
Complaints alleging sexual harassment must be filed within 300 days (compared to 180 days for other discrimination claims under Texas law).
Source: Texas Labor Code §§ 21.201(g), 21.202(a-1) Effective date: September 1, 2021 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
Training Requirements:
Texas does not currently have a statewide mandatory sexual harassment training requirement for private employers. However, state agencies must provide employment discrimination training (including sexual harassment) to all employees.
Source: Texas Labor Code § 21.010 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
3.5 Retaliation Protection
Retaliation is independently unlawful under both state and federal law.
According to Texas Labor Code § 21.055:
“An employer, labor union, or employment agency commits an unlawful employment practice if the employer, labor union, or employment agency retaliates or discriminates against a person who, under this chapter: (1) opposes a discriminatory practice; (2) makes or files a charge; (3) files a complaint; or (4) testifies, assists, or participates in any manner in an investigation, proceeding, or hearing.”
Source: Texas Labor Code § 21.055 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
Protected Activities:
- Opposing discriminatory practices
- Filing discrimination charges or complaints
- Participating in investigations, proceedings, or hearings
- Testifying as a witness
- Requesting reasonable accommodations
Examples of Retaliation:
- Termination
- Demotion
- Salary reduction
- Undesirable job reassignment
- Negative performance evaluations
- Increased scrutiny or monitoring
- Creating hostile work environment
Standards for Retaliation Claims:
To prove retaliation, an employee must show:
- Participation in protected activity
- Adverse employment action
- Causal connection between protected activity and adverse action
The employee need not prove the protected activity was the sole cause, only that it was a motivating factor.
3.6 Enforcement and Remedies
Filing Deadline – Texas:
Standard Discrimination Claims: 180 days from the date of discrimination
Sexual Harassment Claims: 300 days from the date of harassment
Source: Texas Labor Code §§ 21.202(a), 21.202(a-1) Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
Filing Deadline – Federal:
EEOC Charges: 300 days in “deferral states” (including Texas)
Source: 29 C.F.R. § 1601.13 Official text: https://www.ecfr.gov/current/title-29/subtitle-B/chapter-XIV/part-1601
Available Remedies:
Under TCHRA, successful complainants may recover:
- Back Pay: Up to two years before the complaint was filed
- Front Pay: Future lost earnings
- Reinstatement or Hiring
- Compensatory Damages: For emotional distress, mental anguish (in cases of intentional discrimination)
- Punitive Damages: Against non-governmental employers who acted with malice or reckless indifference
Damage Caps:
Texas Labor Code § 21.2585 caps compensatory and punitive damages combined:
- $50,000 for employers with fewer than 101 employees
- $100,000 for employers with 101-200 employees
- $200,000 for employers with 201-500 employees
- $300,000 for employers with more than 500 employees
Source: Texas Labor Code § 21.2585 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
- Attorney’s Fees and Costs: May be awarded to prevailing parties
Reasonable Accommodations
4.1 Disability Accommodations
Both Texas and federal law require employers to provide reasonable accommodations for qualified individuals with disabilities.
Who Must Provide Accommodations:
- Texas Law (TCHRA): Employers with 15+ employees
- Federal Law (ADA): Employers with 15+ employees
Definition of Disability:
According to Texas Labor Code § 21.002(6):
“Disability” means, with respect to an individual, a mental or physical impairment that substantially limits at least one major life activity of that individual, a record of such an impairment, or being regarded as having such an impairment.”
Source: Texas Labor Code § 21.002(6) Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
Major Life Activities:
According to Texas Labor Code § 21.002(11-a):
“Major life activity” includes, but is not limited to, caring for oneself, performing manual tasks, seeing, hearing, eating, sleeping, walking, standing, lifting, bending, speaking, breathing, learning, reading, concentrating, thinking, communicating, and working. The term also includes the operation of a major bodily function, including, but not limited to, functions of the immune system, normal cell growth, and digestive, bowel, bladder, neurological, brain, respiratory, circulatory, endocrine, and reproductive functions.”
Source: Texas Labor Code § 21.002(11-a) Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
Reasonable Accommodation Requirement:
According to Texas Labor Code § 21.128(a):
“It is an unlawful employment practice for a respondent covered under this chapter to fail or refuse to make a reasonable workplace accommodation to a known physical or mental limitation of an otherwise qualified individual with a disability who is an employee or applicant for employment, unless the respondent demonstrates that the accommodation would impose an undue hardship on the operation of the business of the respondent.”
Source: Texas Labor Code § 21.128(a) Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
4.2 Interactive Process
Employers must engage in an interactive process to identify effective reasonable accommodations.
Five Steps of Interactive Process:
- Employee Requests Accommodation: Employee notifies employer of need for accommodation due to disability
- Employer Gathers Information: Employer may request medical documentation establishing disability and need for accommodation
- Employer and Employee Discuss Options: Both parties engage in good faith dialogue about possible accommodations
- Employer Selects and Implements Accommodation: Employer chooses effective accommodation (not necessarily employee’s preferred option)
- Monitor and Adjust: Parties monitor effectiveness and make adjustments as needed
Good Faith Requirement:
According to Texas Labor Code § 21.128(c):
“In a complaint in which a discriminatory employment practice involves the provision of a reasonable workplace accommodation under this chapter, damages may not be awarded under Subchapter F if the respondent demonstrates good faith efforts, in consultation with the otherwise qualified individual with a disability who has informed the respondent that accommodation is needed, to identify and make a reasonable workplace accommodation that would provide the individual with an equally effective opportunity and would not cause an undue hardship on the operation of the business.”
Source: Texas Labor Code § 21.128(c) Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
4.3 Undue Hardship Exception
Employers are not required to provide accommodations that would impose an undue hardship.
Undue Hardship Factors:
According to EEOC guidance on the ADA:
- Nature and cost of accommodation
- Overall financial resources of the facility
- Number of employees at the facility
- Effect on expenses and resources
- Impact on facility operations
- Type of business operation
Source: 29 C.F.R. § 1630.2(p) Official text: https://www.ecfr.gov/current/title-29/subtitle-B/chapter-XIV/part-1630
Undue hardship means significant difficulty or expense relative to the employer’s size, resources, and nature of operation.
4.4 Religious Accommodations
Employers must reasonably accommodate employees’ religious beliefs and practices unless doing so would cause undue hardship.
According to Texas Labor Code § 21.108:
“A provision in this chapter referring to discrimination because of religion or on the basis of religion applies to discrimination because of or on the basis of any aspect of religious observance, practice, or belief, unless an employer demonstrates that the employer is unable reasonably to accommodate the religious observance or practice of an employee or applicant without undue hardship to the conduct of the employer’s business.”
Source: Texas Labor Code § 21.108 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
Types of Religious Accommodations:
- Modified work schedules for religious observances
- Voluntary shift substitutions or swaps
- Reassignment to different position
- Modifications to workplace dress code
- Exemption from union membership or dues (if religiously opposed)
4.5 Pregnancy Accommodations
Pregnancy, childbirth, and related medical conditions must be treated the same as other temporary medical conditions.
According to Texas Labor Code § 21.106:
“(a) A provision in this chapter referring to discrimination because of sex or on the basis of sex includes discrimination because of or on the basis of pregnancy, childbirth, or a related medical condition. (b) A woman affected by pregnancy, childbirth, or a related medical condition shall be treated for all purposes related to employment, including receipt of a benefit under a fringe benefit program, in the same manner as another individual not affected but similar in the individual’s ability or inability to work.”
Source: Texas Labor Code § 21.106 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
Pregnancy Accommodations May Include:
- Light duty assignments
- Modified work schedules
- Additional breaks
- Temporary reassignment
- Leave of absence
Employer Obligations in Texas
5.1 Required Workplace Postings
Texas and federal law require employers to display specific notices in the workplace.
Federal Postings Required for All Employers:
- Fair Labor Standards Act (FLSA) – Minimum wage and overtime
Source: U.S. Department of Labor, Wage and Hour Division Poster: Employee Rights Under the Fair Labor Standards Act Available at: https://www.dol.gov/agencies/whd/posters
- Occupational Safety and Health Act (OSHA) – Workplace safety
Source: Occupational Safety and Health Administration Poster: Job Safety and Health: It’s the Law Available at: https://www.osha.gov/sites/default/files/publications/osha3165.pdf
- Equal Employment Opportunity (EEO) – Anti-discrimination
Source: Equal Employment Opportunity Commission Poster: EEO is the Law Available at: https://www.eeoc.gov/poster
- Employee Polygraph Protection Act – Polygraph testing restrictions
Source: U.S. Department of Labor, Wage and Hour Division Available at: https://www.dol.gov/agencies/whd/posters
- Family and Medical Leave Act (FMLA) – If employer has 50+ employees
Source: U.S. Department of Labor, Wage and Hour Division Available at: https://www.dol.gov/agencies/whd/fmla/posters
Texas State Postings:
- Texas Payday Law – Wage payment requirements
Source: Texas Workforce Commission Available at: https://www.twc.texas.gov/news/posters-publications
- Texas Unemployment Compensation – Unemployment benefits
Source: Texas Workforce Commission Available at: https://www.twc.texas.gov/news/posters-publications
- Workers’ Compensation Coverage Notice – If employer has workers’ compensation insurance
Source: Texas Department of Insurance, Division of Workers’ Compensation Multiple notices required (Notices 7 and 10) Available at: https://www.tdi.texas.gov/wc/employee/posters.html
- Child Labor Law Poster – If employer hires minors
Source: Texas Workforce Commission Available at: https://www.twc.texas.gov/news/posters-publications
- Equal Employment Opportunity Notice
Source: Texas Workforce Commission Civil Rights Division Available at: https://www.twc.texas.gov/programs/civil-rights
Posting Requirements:
- Posters must be displayed in conspicuous locations
- Must be accessible to all employees
- Must be in English and Spanish (bilingual) where appropriate
- Electronic posting may supplement but not replace physical posting
5.2 New Hire Reporting
Texas requires employers to report all new hires to the state.
Requirement:
Employers must report new and rehired employees to the Texas Attorney General’s Office within 20 calendar days of the employee’s start date.
Source: Texas Family Code § 234.101 Official text: https://statutes.capitol.texas.gov/Docs/FA/htm/FA.234.htm
Information to Report:
- Employee name, address, Social Security number, date of birth
- Employer name, address, federal employer identification number (FEIN)
- Employee hire date
Reporting Method:
Online portal: Texas Attorney General Child Support Division Website: https://www.texasattorneygeneral.gov/child-support/employers/hiring-employees
5.3 Employment Eligibility Verification (Form I-9)
Federal law requires all employers to verify employment eligibility of all employees.
Requirement:
All employers must complete Form I-9, Employment Eligibility Verification, for each employee hired after November 6, 1986.
Source: Immigration and Nationality Act, 8 U.S.C. § 1324a Form I-9 instructions: https://www.uscis.gov/i-9
Timing:
- Section 1 (employee): Complete on or before first day of employment
- Section 2 (employer): Complete within 3 business days of employee’s start date
- Section 3 (reverification): Complete when required (expiration of work authorization)
Retention:
- Retain for 3 years after hire date OR 1 year after termination, whichever is later
- Forms must be available for inspection by authorized government officials
E-Verify:
E-Verify is a voluntary federal program (except for certain federal contractors) that electronically verifies employment eligibility.
Source: U.S. Citizenship and Immigration Services Website: https://www.e-verify.gov/
Texas does not currently mandate E-Verify for all private employers, but certain government contractors and state agencies must use E-Verify.
5.4 Recordkeeping Requirements
Employers must maintain specific employment records.
Federal FLSA Requirements:
Employers must maintain for at least 3 years:
- Employee name, address, Social Security number
- Birth date (if under 19)
- Sex and occupation
- Time and day workweek begins
- Hours worked each day and workweek
- Total daily or weekly straight-time earnings
- Regular hourly pay rate
- Total overtime earnings
- Additions or deductions from wages
- Total wages paid each period
- Date of payment and pay period covered
Source: 29 C.F.R. § 516 Official text: https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-A/part-516
Texas Recordkeeping Requirements:
According to Texas Labor Code § 52.052:
Employers must maintain employment and payroll records including:
- Employer’s name and address
- Name and address of each branch/division
- Each employee’s name, address, Social Security number
- Dates and states where services performed
- Wages paid for each payroll period
- Any other remuneration
- Employee hours and dates worked (if less than full time)
Retention: 4 years under Texas law
Source: Texas Labor Code § 52.052 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.52.htm
Filing Complaints
6.1 When to File a Complaint
Employees may file complaints for various employment law violations, including:
- Wage theft or unpaid wages
- Discrimination based on protected characteristics
- Harassment or hostile work environment
- Retaliation for protected activities
- Denial of reasonable accommodations
- Unsafe working conditions
- Violations of child labor laws
The appropriate filing agency and deadline depend on the type of violation alleged. See sections below for specific agency jurisdiction and filing requirements.
6.2 Texas Workforce Commission – Wage Claims
For: Unpaid wages, final paycheck disputes, payday law violations
Texas Workforce Commission Wage and Hour Department
Mailing Address: Texas Workforce Commission 101 East 15th Street Austin, TX 78778-0001
Website: https://www.twc.texas.gov/jobseekers/texas-payday-law
How to File:
- Online: File wage claim through TWC website
- Phone: 800-832-9243
- Mail: Send written complaint to address above
Deadline: Must file within 180 days of date wages were due
Source: Texas Labor Code § 61.051 Official text: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.61.htm
What TWC Investigates:
- Unpaid wages
- Illegal deductions
- Final paycheck timing violations
- Paystub violations
- Minimum wage violations (Texas law)
What TWC Does NOT Investigate:
- Employment discrimination
- Severance pay disputes
- Bonus disputes (unless clearly earned wages)
- Independent contractor classification
- Federal minimum wage or overtime (refer to U.S. Department of Labor)
6.3 Texas Workforce Commission Civil Rights Division – Discrimination
For: Employment discrimination, harassment, retaliation
Texas Workforce Commission Civil Rights Division
Mailing Address: Texas Workforce Commission Civil Rights Division 101 East 15th Street Austin, TX 78778
Phone: 888-452-4778 TTY: 800-735-2989 Fax: 512-482-8465
Website: https://www.twc.texas.gov/programs/civil-rights/employment-discrimination
Online Filing: Employment Discrimination Inquiry Submission System (EDISS) Available at: https://www.twc.texas.gov/programs/civil-rights/employment-discrimination
Deadlines:
- Sexual harassment: 300 days from date of harassment
- Other discrimination: 180 days from date of discrimination
Employer Coverage:
- Private employers: 15+ employees
- State agencies: All (regardless of size)
- Local governments: All (regardless of size)
What TWC-CRD Investigates:
- Race, color, sex, national origin, religion discrimination
- Age discrimination (40+)
- Disability discrimination
- Genetic information discrimination
- Sexual harassment
- Pregnancy discrimination
- Retaliation
6.4 Equal Employment Opportunity Commission (EEOC) – Federal Claims
For: Federal employment discrimination claims
EEOC Houston District Office 1919 Smith Street, 6th Floor Houston, TX 77002
Phone: 800-669-4000 TTY: 800-669-6820 Fax: 713-651-4987 ASL Video Phone: 844-234-5122
Website: https://www.eeoc.gov
Online Filing: Public Portal Available at: https://publicportal.eeoc.gov/Portal/Login.aspx
Deadline: 300 days from date of discrimination (in Texas, a “deferral state”)
Source: 29 C.F.R. § 1601.13 Official text: https://www.ecfr.gov/current/title-29/subtitle-B/chapter-XIV/part-1601
What EEOC Investigates:
- Title VII violations (race, color, sex, national origin, religion)
- Age discrimination (40+) under ADEA
- Disability discrimination under ADA
- Genetic information discrimination under GINA
- Retaliation
- Pregnancy discrimination
Work-Sharing Agreement:
EEOC and TWC-CRD have a work-sharing agreement. Filing with one agency typically results in automatic cross-filing with the other.
6.5 U.S. Department of Labor – Wage and Safety Violations
For: Federal wage and hour violations, workplace safety
U.S. Department of Labor Wage and Hour Division – Dallas District Office 525 S. Griffin Street, Suite 900 Dallas, TX 75202
Phone: 972-850-4600 Website: https://www.dol.gov/agencies/whd
What WHD Investigates:
- Federal minimum wage violations
- Overtime violations under FLSA
- Child labor violations
- Family and Medical Leave Act violations
- Prevailing wage requirements
Occupational Safety and Health Administration (OSHA)
Houston North Office 507 North Sam Houston Parkway East, Suite 400 Houston, TX 77060 Phone: 281-591-2438
Houston South Office 17625 El Camino Real, Suite 400 Houston, TX 77058 Phone: 281-286-0583
Website: https://www.osha.gov
Online Filing: File complaint online at OSHA website
What OSHA Investigates:
- Workplace safety hazards
- Unsafe working conditions
- Retaliation for reporting safety concerns
6.6 Private Lawsuit
Employees may file private lawsuits in some circumstances:
Direct Filing (No Administrative Exhaustion Required):
- Texas Payday Law violations
- Breach of employment contract
- Common law wrongful termination (Sabine Pilot exception)
- Certain state law tort claims
After Administrative Process:
- Discrimination claims under TCHRA (after TWC-CRD investigation or 180 days)
- Federal discrimination claims (after EEOC Right to Sue letter)
Statute of Limitations:
- Wage claims under Texas Payday Law: 2 years
- Discrimination claims under TCHRA: Within 2 years of filing complaint with TWC-CRD or within 60 days of receiving Right to Sue letter
- Federal discrimination claims: 90 days after receiving EEOC Right to Sue letter
Source: Texas Labor Code §§ 21.256, 61.051; 42 U.S.C. § 2000e-5(f)(1)
Remote Work in Texas
7.1 Key Considerations
Texas does not have specific statutes governing remote work arrangements. Remote work policies are primarily governed by:
- Employer policies
- Employment contracts
- Federal wage and hour laws
- Workers’ compensation requirements
- Occupational safety obligations
Wage and Hour Compliance:
Remote workers must be paid according to FLSA requirements:
- Non-exempt remote workers must receive overtime for hours over 40 per week
- Employers must track all hours worked, including remote work time
- Short breaks (5-20 minutes) are compensable
- On-call time may be compensable depending on restrictions
Workers’ Compensation:
Generally, injuries occurring during remote work in the course and scope of employment may be covered by workers’ compensation, depending on specific circumstances.
7.2 Return-to-Office Mandates
Texas employers generally have the right to require employees to return to physical workplaces, subject to:
- Terms of employment contracts
- Collective bargaining agreements
- Reasonable accommodation obligations for employees with disabilities
- Unemployment compensation implications if employee refuses
For comprehensive information on remote work laws, return-to-office mandates, and employer obligations, please see our dedicated Remote Work Laws guide.
2026 Legislative Updates
8.1 Major Legislation Effective 2026
1. Texas Responsible Artificial Intelligence Governance Act (TRAIGA)
House Bill 149
Effective Date: January 1, 2026
Governor Signed: June 22, 2025
According to TRAIGA:
“Prohibits developing or deploying an AI system with the intent to discriminate against a protected class under federal or state law.”
Source: Texas H.B. 149 (2025) Effective date: January 1, 2026 Available at: https://capitol.texas.gov/
Key Provisions:
- Applies to entities developing or deploying AI systems in Texas
- Applies to entities advertising in Texas or offering services to Texas residents
- Prohibits intentional discrimination through AI systems
- Focuses on intent; disparate impact alone does not violate the law
- Enforcement exclusively through Texas Attorney General
- No private right of action
- 60-day cure period for violations
Employment Implications:
Under TRAIGA, employers using AI for employment decisions (hiring, promotion, termination, compensation) are subject to the following legal requirements:
- AI tools may not be developed or deployed with intent to discriminate against protected classes
- Documentation of AI governance procedures
- Monitoring of AI tools for potential discriminatory effects
- Vendor confirmation that AI tools comply with TRAIGA requirements
- Establishment of oversight teams for AI usage
These requirements apply to covered entities as of January 1, 2026.
Protected Classes Under TRAIGA:
All protected classes under federal and state law:
- Race, color, national origin, sex, religion (Title VII)
- Age 40+ (ADEA)
- Disability (ADA)
- Genetic information (GINA)
- All Texas state protected classes
Enforcement:
The Texas Attorney General has exclusive enforcement authority under TRAIGA. There is no private right of action. Violations are subject to a 60-day cure period before penalties may be assessed.
2. Unemployment Claims Simplification
House Bill 3699
Effective Date: January 1, 2026
According to H.B. 3699:
“Simplifies unemployment claims by defining a worker’s ‘last work’ and ‘person for whom the claimant last worked’ as the last employer under Texas law, removing the prior 30-hour requirement.”
Source: Texas H.B. 3699 (2025) Effective date: January 1, 2026 Available at: https://capitol.texas.gov/
Impact: Clarifies eligibility determinations for unemployment compensation benefits.
8.2 Other Notable Changes
Federal Minimum Wage
No change to federal minimum wage in 2026. Rate remains $7.25 per hour.
Source: Fair Labor Standards Act, 29 U.S.C. § 206 Current rate: $7.25 per hour (effective July 24, 2009)
No Paid Leave Mandates
Texas did not enact paid sick leave, paid family leave, or other paid time off mandates effective 2026.
No Pay Transparency Requirements
Texas did not enact salary posting or pay transparency requirements for 2026. The only pay-related notification requirement is the annual Earned Income Tax Credit (EITC) notice by March 1.
Source: Texas Workforce Commission guidance Available at: https://www.twc.texas.gov/
8.3 Pending Legislation
H.B. 2196 (2025) – Public Sector Pay Range Disclosure
Proposed (not enacted as of January 2026): Would require pay range disclosure for public sector jobs. This bill has not been enacted and does not currently apply to private employers.
8.4 How to Stay Updated
Official Sources for Texas Employment Law Updates:
- Texas Legislature Online Website: https://capitol.texas.gov/ Purpose: Track pending and enacted legislation
- Texas Workforce Commission Website: https://www.twc.texas.gov/ Purpose: Administrative rules, guidance, posters
- Texas Attorney General Website: https://www.texasattorneygeneral.gov/ Purpose: Legal opinions, enforcement actions
- Texas Secretary of State Website: https://www.sos.texas.gov/ Purpose: Administrative rules, Texas Register
- U.S. Department of Labor Website: https://www.dol.gov/ Purpose: Federal wage and hour, safety regulations
- Equal Employment Opportunity Commission Website: https://www.eeoc.gov/ Purpose: Federal discrimination guidance
8.5 Quarterly Review Schedule
This guide follows a quarterly review schedule to ensure accuracy and currency:
- Q1 2026 (January-March): Major updates published
- Q2 2026 (April-June): Quarterly review
- Q3 2026 (July-September): Quarterly review
- Q4 2026 (October-December): Quarterly review and annual update preparation
Additionally, immediate updates will be made for:
- Emergency legislation
- Significant court decisions affecting employment law
- New administrative rules with immediate effect
- Federal regulation changes
Resources
10.1 Texas Government Agencies
Texas Workforce Commission Main office and mailing address 101 East 15th Street Austin, TX 78778-0001
General inquiries: 512-463-2222 Toll-free: 800-832-9243 Website: https://www.twc.texas.gov/
Texas Workforce Commission – Civil Rights Division Handles employment discrimination complaints
Mailing address: Texas Workforce Commission Civil Rights Division
101 East 15th Street Austin, TX 78778
Phone: 888-452-4778 TTY: 800-735-2989 Fax: 512-482-8465 Website: https://www.twc.texas.gov/programs/civil-rights Email: EEOIntake@twc.state.tx.us
Texas Workforce Commission – Unemployment Benefits Phone: 800-939-6631 Website: https://www.twc.texas.gov/jobseekers/unemployment-benefits-services
Texas Department of Insurance – Workers’ Compensation Division of Workers’ Compensation
Mailing address: 7551 Metro Center Drive, Suite 100 Austin, TX 78744-1609
Phone: 512-804-4000 Toll-free: 800-252-7031 Website: https://www.tdi.texas.gov/wc/
Texas Attorney General Child Support Division (New Hire Reporting)
Mailing address: P.O. Box 12017 Austin, TX 78711-2017
Phone: 800-252-8014 Website: https://www.texasattorneygeneral.gov/child-support
10.2 Federal Agencies
Equal Employment Opportunity Commission (EEOC) Houston District Office
Physical address: 1919 Smith Street, 6th Floor Houston, TX 77002
Phone: 800-669-4000 TTY: 800-669-6820 ASL Video Phone: 844-234-5122 Fax: 713-651-4987 Website: https://www.eeoc.gov
U.S. Department of Labor – Wage and Hour Division Dallas District Office
Physical address: 525 S. Griffin Street, Suite 900 Dallas, TX 75202
Phone: 972-850-4600 Toll-free: 866-487-9243 Website: https://www.dol.gov/agencies/whd
U.S. Department of Labor – Occupational Safety and Health Administration (OSHA)
Houston North Office Physical address: 507 North Sam Houston Parkway East, Suite 400 Houston, TX 77060 Phone: 281-591-2438
Houston South Office Physical address: 17625 El Camino Real, Suite 400 Houston, TX 77058 Phone: 281-286-0583 Toll-free: 800-692-4202
Website: https://www.osha.gov
U.S. Citizenship and Immigration Services Form I-9 and E-Verify information
Phone: 888-897-7781 Website (Form I-9): https://www.uscis.gov/i-9 Website (E-Verify): https://www.e-verify.gov/
10.3 Key Publications and Resources
Texas Labor Code Complete text of Texas employment laws Available at: https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
Fair Labor Standards Act Federal wage and hour law Available at: https://www.dol.gov/agencies/whd/flsa
EEOC Compliance Manual Guidance on federal anti-discrimination laws Available at: https://www.eeoc.gov/laws/guidance/
Texas Administrative Code State regulations and administrative rules Available at: https://www.sos.texas.gov/tac/
Texas Workforce Commission Publications Workplace posters, guides, and compliance materials Available at: https://www.twc.texas.gov/news/posters-publications
10.4 Finding Legal Assistance
For Legal Advice and Representation:
Individuals seeking legal advice may consult with a licensed employment attorney. To locate an attorney:
- Local county bar associations offer lawyer referral services
- Search directories for “employment lawyer” or “labor lawyer”
- Verify attorney licensing through official state bar records
For Low-Income Individuals:
Legal aid organizations in Texas provide free or low-cost legal services to qualifying low-income residents. To locate legal aid services:
- Contact local county clerk’s office for referrals
- Call 211 (statewide information and referral service)
- Visit local courthouse for pro bono legal clinic information
Note: This guide does not endorse specific attorneys or legal service organizations. Individuals are responsible for conducting their own evaluation when selecting legal representation.
10.5 Additional Official Resources
Texas Conference for Employers (TCE) Annual series of employer education conferences hosted by Texas Workforce Commission Office of the Commissioner Representing Employers
Source: Texas Workforce Commission Website: https://www.twc.texas.gov/news/texas-conference-employers Registration: Check TWC website for current schedule and locations Topics: Employment law updates, wage and hour compliance, discrimination prevention, HR best practices
Note: The TCE series is an official Texas Workforce Commission program providing education directly from state employment law experts and subject matter specialists.
10.6 Updates and Monitoring
Texas Legislature Online Track pending legislation and session updates Website: https://capitol.texas.gov/
Texas Register Official publication for state rules and notices Website: https://www.sos.state.tx.us/texreg/
Federal Register Official publication for federal rules and notices Website: https://www.federalregister.gov/
Employment Law Updates Check government agency websites regularly:
Frequently Asked Questions - Texas Employment Law
1. What is employment law in Texas?
Employment law in Texas encompasses the legal framework governing the relationship between employers and employees, including wage and hour requirements, anti-discrimination protections, workplace safety regulations, and employee benefits. Texas employment law includes both state statutes (primarily in the Texas Labor Code) and federal laws such as the Fair Labor Standards Act, Title VII of the Civil Rights Act, and the Americans with Disabilities Act.
2. What is the difference between labor law and employment law in Texas?
Employment law covers the broad relationship between individual employees and employers, including wages, discrimination, safety, and benefits. Labor law specifically addresses collective bargaining, union organization, and relationships involving labor organizations. Texas is a right-to-work state, meaning employees cannot be required to join unions or pay union dues as a condition of employment.
3. Is Texas an at-will employment state?
Yes, Texas is an at-will employment state. This means either the employer or employee can terminate the employment relationship at any time, for any reason, or for no reason at all (with or without notice), unless there is a specific contract or legal exception. However, terminations cannot violate anti-discrimination laws, retaliation prohibitions, or other statutory protections.
4. What is the minimum wage in Texas for 2026?
The minimum wage in Texas is $7.25 per hour, effective since July 24, 2009. Texas adopts the federal minimum wage established by the Fair Labor Standards Act. There is no separate higher state minimum wage. Tipped employees may be paid $2.13 per hour in direct wages if tips bring total compensation to at least $7.25 per hour.
5. Does Texas require employers to pay overtime?
Texas follows federal overtime requirements under the Fair Labor Standards Act. Non-exempt employees must receive 1.5 times their regular rate for hours worked over 40 in a workweek. Texas does not have daily overtime requirements. Employers may require mandatory overtime as long as proper compensation is provided.
6. What are meal and rest break requirements in Texas?
Texas has no state law requiring meal or rest breaks for adult employees. Break policies are determined by employer policy, employment contracts, or collective bargaining agreements. If employers do provide short breaks (5-20 minutes), federal law requires they be paid. Meal periods (30+ minutes) need not be paid if the employee is completely relieved from duty.
7. What are my employee rights in Texas?
Texas employees have the right to: receive at least minimum wage for all hours worked; receive overtime pay if non-exempt; work free from discrimination based on race, color, sex, national origin, religion, age 40+, disability, or genetic information; work in an environment free from harassment; request reasonable accommodations for disabilities, religious beliefs, or pregnancy; file complaints about illegal practices without retaliation; receive timely payment of wages; and work in a safe environment.
8. Can my employer fire me for any reason in Texas?
Under the at-will employment doctrine, employers can generally terminate employees for any non-illegal reason. However, employers cannot terminate employees for reasons that violate federal or state anti-discrimination laws, in retaliation for protected activities (such as filing complaints or opposing discrimination), for refusing to perform illegal acts, or in violation of an employment contract. Certain other statutory protections also limit at-will employment.
9. How do I file an employment discrimination complaint in Texas?
File with the Texas Workforce Commission Civil Rights Division within 180 days of discrimination (300 days for sexual harassment) via their online Employment Discrimination Inquiry Submission System (EDISS), by phone at 888-452-4778, or by mail to TWC-CRD, 101 East 15th Street, Austin, TX 78778. You may also file with the federal EEOC within 300 days. Due to a work-sharing agreement, filing with one agency typically results in cross-filing with the other.
10. Can I request remote work as a reasonable accommodation in Texas?
Yes, remote work may be a reasonable accommodation for a qualified individual with a disability if it would enable the employee to perform essential job functions without imposing undue hardship on the employer. Employers must engage in an interactive process to evaluate the request. Remote work is not automatically required and depends on the nature of the job, the employee’s limitations, and the employer’s operations.
11. What are employer obligations in Texas?
Texas employers must: pay at least minimum wage; pay overtime to non-exempt employees; provide required workplace notices/posters; maintain accurate payroll records for 4 years; report new hires within 20 days; verify employment eligibility (Form I-9); pay final paychecks timely; provide earnings statements; not discriminate based on protected characteristics; provide reasonable accommodations; not retaliate against employees for protected activities; and comply with workplace safety requirements.
12. What workplace posters are required in Texas?
Texas employers must display: federal Fair Labor Standards Act poster, federal EEO poster, federal OSHA poster, federal Employee Polygraph Protection poster, Texas Payday Law poster, Texas Unemployment Compensation poster, Workers’ Compensation Coverage notices (if applicable), Child Labor Law poster (if employing minors), FMLA poster (if 50+ employees), and Equal Employment Opportunity notice. Posters must be in conspicuous locations accessible to all employees.
13. How long must Texas employers keep employment records?
Federal law requires maintaining wage and hour records for at least 3 years. Texas law requires maintaining employment and payroll records for 4 years. Form I-9 must be retained for 3 years after hire date or 1 year after termination, whichever is later. EEOC regulations require discrimination complaint records to be retained for generally 1 year from complaint or action, with specific requirements varying by circumstances.
14. Does Texas require paid sick leave?
No, Texas does not have a state-mandated paid sick leave requirement for private employers. Paid sick leave is determined by employer policy, employment contracts, or collective bargaining agreements. Texas law preempts local paid sick leave ordinances. Federal law also does not require paid sick leave for private sector employees.
15. What protections exist for remote workers in Texas?
Remote workers in Texas are entitled to the same protections as on-site workers: minimum wage and overtime pay under FLSA, anti-discrimination protections under state and federal law, workers’ compensation coverage (generally), right to request reasonable accommodations, retaliation protections, and safe working conditions. Employers must track all hours worked by non-exempt remote employees and ensure compliance with all wage and hour requirements.
16. Can my employer change my work schedule without notice in Texas?
Yes, under at-will employment, Texas employers may generally change employee work schedules without advance notice, unless an employment contract, collective bargaining agreement, or employer policy requires notice. The employer must still pay employees for all hours worked and provide overtime compensation when required. Retail employers may not require full-time employees to work 7 consecutive days without at least 24 consecutive hours off.
17. Is sexual harassment illegal in Texas?
Yes, sexual harassment is illegal under both Texas state law (Texas Labor Code Chapter 21) and federal law (Title VII). Texas law recognizes two types: quid pro quo (employment decisions conditioned on sexual conduct) and hostile work environment (severe or pervasive unwelcome sexual conduct). As of September 1, 2021, Texas law requires employers to take immediate and appropriate corrective action when they know or should have known about sexual harassment. Employees have 300 days to file sexual harassment complaints under Texas law.
18. What is the statute of limitations for wage claims in Texas?
Employees must file wage claims with the Texas Workforce Commission within 180 days of the date wages were due. For private lawsuits under the Texas Payday Law, the statute of limitations is 2 years from when wages were due. Federal wage claims under FLSA have a 2-year statute of limitations (3 years for willful violations).
19. Can my employer require me to work on holidays in Texas?
Yes, Texas employers may require employees to work on holidays. Texas law does not require employers to provide holidays off, holiday pay, or premium pay for holiday work. Holiday policies are determined by employer policy, employment contracts, or collective bargaining agreements. Employers must still comply with overtime requirements if holiday work causes the employee to exceed 40 hours in the workweek.
20. What options are available if my employer retaliates against me?
Employees who believe they have experienced retaliation have several options under Texas and federal law. Documentation of retaliation incidents may include dates, times, witnesses, and specific actions taken. Complaints may be filed with the Texas Workforce Commission Civil Rights Division within 180 days (or 300 days for sexual harassment retaliation) or with the EEOC within 300 days. Retaliation is independently unlawful even if the underlying discrimination claim is not substantiated. Individuals may also consult with an employment attorney about available legal options. The specific course of action depends on the individual circumstances and the nature of the retaliation alleged.