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Employment and labor laws in Texas [Updated 2026]

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Key takeaways

  • Texas minimum wage is $7.25/hr, matching the federal rate, unchanged since 2009. Texas has no state minimum wage above the federal floor.

  • Texas has no state overtime law. Federal FLSA rules apply: 1.5x pay for hours worked over 40 in a workweek.

  • Texas is a right-to-work, at-will employment state. Employers can terminate employees for any reason that is not illegal, and employees cannot be forced to join a union.

  • The Texas Commission on Human Rights Act (TCHRA) prohibits workplace discrimination based on race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age, disability, and genetic information. Employers with 15 or more employees are covered.

  • Texas enacted a CROWN Act prohibiting discrimination based on hair textures and protective hairstyles historically associated with race.

  • Texas has no statewide pay transparency law and no salary history ban for private employers.

  • Texas has no state paid sick leave mandate. Austin, Dallas, and San Antonio passed local ordinances, but courts have blocked enforcement. Most private employers are not required to provide paid sick leave.

Employment and labor laws provide numerous protections to employees, including safety in the workplace, equal hiring opportunities, the right to unionize, and much more. These regulations are typically a blend of federal and state rules that vary from state to state.

Texas is known for closely following federal regulations, with relatively few state-specific mandates beyond the Texas Payday Law, workers' compensation requirements, and its own anti-discrimination statute. If you're hiring in Texas, understanding both the federal baseline and Texas-specific rules is essential to avoid legal exposure.

Employment vs. labor law: What's the difference?

Although employment and labor laws have some similarities, they are distinct in terms of their legal implications. The primary difference lies in the parties involved. Employment law has to do with the relationship between employers and individual employees. Labor law deals with employers and collective groups such as labor unions.

  • Employment law focuses on workplace discrimination, unsafe working conditions, wage disputes, overtime, hiring practices, harassment, and retaliation.

  • Labor law pertains to union membership, dues, strikes and lockouts, and collective bargaining.

Wages and hours in Texas

The Texas Workforce Commission (TWC) supervises the wages and hours program in Texas, including the Texas Payday Law, the Texas Child Labor Law, and the Texas Minimum Wage Act. Employers must comply with both state and federal wage rules, whichever is higher.

Minimum wage in Texas

Texas's minimum wage is "$7.25 per hour", matching the federal rate under the FLSA, unchanged since 2009. Texas preempts cities and counties from setting a higher local minimum wage.

For tipped employees, the cash wage is $2.13 per hour, with tips making up the difference to $7.25/hr. The employer must cover any shortfall.

Employees under 20 years old may be paid a training wage of $4.25/hr for the first 90 days of employment, per federal DOL certificates.

Overtime pay in Texas

Texas has no state-specific overtime law. Federal FLSA standards govern: non-exempt employees who work more than 40 hours in a workweek are entitled to 1.5 times their regular rate of pay for all additional hours. Common exemptions include executive, administrative, and professional employees who meet the federal salary threshold ($684/week).

Pay transparency in Texas

Texas has no statewide pay transparency law and no salary history ban for private employers. Several bills to restrict salary history inquiries have been proposed but have not passed. Under the federal National Labor Relations Act, employees retain the right to discuss their wages with coworkers.

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Breaks and rest periods in Texas

Texas does not require employers to provide meal or rest breaks to employees. Under the federal FLSA, if an employer offers breaks of 20 minutes or fewer, those must be paid. Unpaid meal breaks of 30 minutes or more are permissible when the employee is fully relieved of duties.

One notable exception: Austin's 2010 ordinance requires construction employers to provide a paid 10-minute rest break for every four hours of work, with required signage in English and Spanish.

Employers must provide reasonable accommodations for nursing employees under the federal PUMP for Nursing Mothers Act — a private, non-bathroom space and sufficient break time to express milk.

Leaves of absence in Texas

Texas leave laws closely follow federal guidelines, with few state-specific additions.

Vacation time

Texas does not require private employers to offer paid or unpaid vacation. If vacation is offered, the employer must follow the terms of their own employment contracts or policies.

Family and medical leave

Texas does not have a state family and medical leave law, but federal FMLA applies to employers with 50 or more employees. Eligible employees may take up to 12 weeks of unpaid, job-protected leave per year for qualifying reasons, including childbirth, adoption, or caring for a seriously ill family member.

Military leave

Under federal USERRA, employees called to active duty or authorized military training are entitled to a leave of absence and reinstatement to their previous position — with the same seniority, pay, and benefits — upon return. Employers with 15 or more employees must grant eligible employees unpaid military leave.

Jury duty leave

Texas private employers are not required to pay employees for time spent on jury duty. However, it is illegal to fire or take hostile action against an employee for serving on a jury, provided the employee gives reasonable advance notice of their absence.

Voting leave

Texas employers must provide paid time off for employees to vote during elections, unless the employee has at least two consecutive hours available outside their working hours while polls are open. It is illegal to penalize employees or reduce their wages or benefits for taking time off to vote.

Holiday leave

Private employers are not required to offer paid or unpaid holiday leave. Employees may be required to work on any public holiday and are not entitled to premium pay unless the employment contract provides otherwise.

Pregnancy disability leave in Texas

Texas has no state pregnancy disability leave law. Federal FMLA applies for qualifying employers (50+ employees), providing up to 12 weeks of unpaid leave for pregnancy-related conditions. The federal Pregnant Workers Fairness Act (PWFA) requires employers with 15 or more employees to provide reasonable accommodations for pregnancy-related limitations.

Texas has no statewide paid sick leave law. Austin, Dallas, and San Antonio have enacted local paid sick leave ordinances, but courts have blocked their enforcement, and their legal status remains uncertain as of 2026. Most private-sector Texas employers are not required to provide paid sick leave.

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Workplace safety in Texas

Texas employers must provide a safe working environment under the Texas Occupational Safety and Health Act (TOSHA), which mirrors federal OSHA standards. The Texas Department of Insurance, Division of Workers' Compensation (DWC), oversees workplace safety and workers' compensation in the state.

The Texas Hazard Communication Act requires employers to inform and train workers on hazardous chemicals they may encounter at work. Employers are encouraged to maintain a written Safety, Health, and Injury & Illness Prevention Plan (IIPP), though it is not strictly required by federal OSHA for most industries.

Texas is unique in that workers' compensation insurance is "not mandatory" for most private employers. However, employers that opt out ("non-subscribers") lose certain legal protections and can be sued directly for workplace injuries. Most large employers carry coverage anyway.

Discrimination and harassment laws in Texas

The Texas Commission on Human Rights Act (TCHRA), enforced by the Civil Rights Division of the Texas Workforce Commission, prohibits workplace discrimination based on:

  • Race, color, national origin

  • Religion

  • Sex (including pregnancy, gender identity, and sexual orientation)

  • Disability

  • Age

  • Genetic information

The TCHRA applies to employers with 15 or more employees and covers the full employment lifecycle — hiring, compensation, promotions, and termination. Employees may file complaints with the TWC Civil Rights Division or the federal EEOC.

Two notable additional Texas anti-discrimination protections:

  • Emergency Evacuation Employment Discrimination: Under the Texas Labor Code, employers cannot fire or discriminate against employees who follow an emergency evacuation order.

  • Texas CROWN Act: Prohibits employers, labor unions, and employment agencies from implementing dress or grooming policies that discriminate against hair textures or protective hairstyles historically associated with a particular race.

Texas does not require sexual harassment training for private employers, though the EEOC strongly recommends it. Training requirements . Employers are responsible for the harassment behavior of their employees, even if unaware of it.

Unions in Texas

Workers can join a labor union to collectively negotiate for better wages, benefits, and working conditions. The guarantees workers the right to organize, bargain collectively, take collective action, or refrain from union activity.

  • Organize or join a union to negotiate with their employer.

  • Bargain collectively by choosing employee representatives to set work conditions.

  • Discuss employment terms with coworkers.

  • File complaints to improve working conditions with their employer or the government.

  • Strike or picket, depending on the reason.

  • Refrain from joining a union.

Texas is a right-to-work state, meaning an employer cannot require union membership or union dues as a condition of employment. Employers also cannot prohibit employees from organizing or bargaining through a labor organization.

How Rippling supports Texas labor law compliance

Texas closely follows federal employment law, but employers still need to manage the Texas Payday Law, the Texas Commission on Human Rights Act, CROWN Act compliance, workers' compensation requirements, and Austin's construction rest break ordinance. Rippling gives Texas employers the infrastructure to stay compliant as their workforce grows.

  • : helps Texas employers manage HR administration, onboarding documentation, and compliance workflows, including support for TCHRA anti-discrimination requirements and workers' compensation enrollment.

  • : automates Texas payroll processing, FLSA overtime calculations, and wage compliance under the Texas Payday Law — flagging minimum wage violations based on each employee's work location.

  • : centralizes employee records and compliance documentation, supporting audit readiness for the Texas Workforce Commission or federal EEOC inquiries.

  • : tracks hours worked, leave balances, and scheduling to support FMLA obligations, jury duty leave, and workers' compensation leave management for Texas employers.

  • : centralizes headcount planning and compensation management so employers can maintain pay equity, set consistent salary ranges, and stay ahead of pay transparency laws.

  • : delivers ready-to-use compliance and harassment training courses, helping employers meet training best practices and reduce legal risk across their workforce.

FAQs about Texas labor and employment laws

Texas employment laws apply only to employees, not independent contractors. A misclassified contractor can result in serious legal repercussions for employers. Use our analyzer tool to ensure you’re classifying your workers correctly.

Yes, Texas is an at-will employment state where either employers or employees can end the employment relationship at any point without cause or notice.

Although federal law provides privacy protections for electronic communications, some exceptions allow employers to monitor them. In Texas, employers are generally permitted to monitor their employees' internet and email use.

It’s legal for employers in Texas to conduct background checks. No state law prevents them from asking about a candidate's criminal history on a job application or conducting a criminal background check during the hiring process.

However, some Texas cities and counties have "ban the box" policies, so be mindful as you hire locally.

The Texas Whistleblower Act safeguards employees working for public employers who report legal violations by their employer to an appropriate law enforcement authority. The act doesn’t extend to private sector employees.

Workers’ compensation is only required in certain cases. In Texas, employers with five or more employees can purchase workers' compensation insurance. While it isn’t mandatory for private employers, those who work with the government must provide coverage. It's worth noting that those who opt out of coverage aren’t protected from most lawsuits filed by injured employees.

Employers who have 50+ full-time or full-time equivalent (FTE) employees are mandated by federal law to offer healthcare benefits.

In Texas, employers aren’t required to offer their employees bereavement leave.

According to the Worker Adjustment and Retraining Notification (WARN) Act, employers with 100+ employees must provide advance notice of 60 days for mass layoffs or plant closures. In Texas, you can receive your final paycheck immediately after your employment ends.

The Texas Workforce Commission manages unemployment benefits for employees who lose their jobs (and aren't at fault). You can apply for benefits and maintain eligibility online.

Stay compliant with Texas labor laws
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Disclaimer

Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.

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Author

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Vanessa Kahkesh

Content Marketing Manager, HR

Vanessa Kahkesh is a content marketer for HR passionate about shaping conversations at the intersection of people, strategy, and workplace culture. At Rippling, she leads the creation of HR-focused content. Vanessa honed her marketing, storytelling, and growth skills through roles in product marketing, community-building, and startup ventures. She worked on the product marketing team at Replit and was the founder of STUDENTpreneurs, a global community platform for student founders. Her multidisciplinary experience — combining narrative, brand, and operations — gives her a unique lens into HR content: she effectively bridges the technical side of HR with the human stories behind them.

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