Understanding Texas Employment and Labor Laws

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

Federal vs. state law differences

While federal laws provide a baseline across the United States, Texas has its own set of labor regulations that align closely with federal standards. Texas does not have a state minimum wage law, relying on the federal minimum wage instead. It is important for both employers and employees to understand how state-specific regulations may complement or differ from federal laws to maintain compliance.

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

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

Wages and hours in Texas

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

Minimum wage in Texas

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

Overtime pay in Texas

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

Pay transparency in Texas

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

Breaks and rest periods in Texas

Texas does not have specific state laws mandating meal or rest breaks for employees. However, if employers choose to provide short breaks (typically lasting about 5 to 20 minutes), these breaks must be counted as compensable work hours under federal law.

Leaves of absence in Texas

Texas follows the federal Family and Medical Leave Act (FMLA), which allows eligible employees to take unpaid leave for family or medical reasons. The state does not have additional family leave laws but adheres to the protections provided under the FMLA.

Pregnancy disability leave

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

Paid sick leave

Texas does not have a statewide mandate for paid sick leave. However, some cities within Texas, like Austin and San Antonio, have attempted to pass local ordinances requiring paid sick leave, though these have faced legal challenges. Employers should be aware of local regulations and their own policies regarding sick leave.

Jury duty in Texas

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

Workplace safety in Texas

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

Discrimination and harassment laws in Texas

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

Unions in Texas

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

Stay compliant across the US with Deel PEO

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

• Expert payroll administration
• Advanced HR and benefits compliance
• Access to benefit plans from leading providers
• Trainings, HR policies, and on-demand HR support

Book a demo to explore Deel’s platform and speak with an expert.