Texas Labor Laws

In the US, there are federal laws in place to manage the time spent by employees in the workplace, safeguarding their rights and guaranteeing fair pay for their efforts. These laws act as directives for employers, keeping them in check, and minimizing any forms of abuse or exploitation.

The Fair Labor Standards Act (FLSA), which dates back to 1938, is a critical federal law for time management, setting hourly wage rates and overtime pay, and requiring employers to keep an accurate record of their employees’ working hours. Overtime is pegged at 1.5 times the regular hourly rate for workers who exceed 40 hours a week. However, certain job categories, including executives, professionals, and administrative employees, are exempt from overtime pay depending on their job description and salary.

The Family and Medical Leave Act (FMLA) is another essential federal law that governs time management in the workplace, entitling eligible employees to up to 12 weeks of unpaid leave for specific family and medical reasons, such as the birth or adoption of a child or caring for a family member with a serious health condition. This act also requires employers to maintain employees’ health benefits during their leave and restore them to their previous or equivalent positions upon their return to work.

Employers who contravene federal time management laws face severe legal ramifications, including fines, back pay, and damages. If workers feel that their employer has violated federal time management laws, they can file complaints with the Department of Labor’s Wage and Hour Division for investigation and legal action.

Overall, federal time management laws are instrumental in ensuring that workers are compensated fairly for their time and effort in the workplace, protecting them from abuse and exploitation by employers. The Fair Labor Standards Act and the Family and Medical Leave Act are vital federal laws that govern time management and worker compensation, ensuring fair labor practices across various sectors, including non-profit, public, and private organizations.

Employment discrimination when hiring is strictly prohibited by Texas law. It is unlawful for an employer, employment agency, labor organization, or training program to fail or refuse to hire, limit, segregate, classify, or discriminate against an individual based on:

• Religion
• National origin
• Race
• Sex
• Color
• Disability
• Age (applicable to individuals who are 40 years old or older)

The law in Texas that forbids discrimination in the workplace applies to both private employers with 15 or more workers and all state and local government agencies, no matter how many workers they have. Additionally, Texas law safeguards employees against retaliation and discrimination. Thus, if an employer retaliates against an individual who lodges a workplace discrimination complaint or cooperates in a discrimination inquiry, it constitutes illegal employment conduct.

Texas is a “right-to-work” state, which means that employees can’t be turned down for a job or treated badly at work because they are or aren’t members of a labor union or other group. This law also says that employers, officers, agents, representatives, or members of a labor union can’t take fees from non-union members as a condition of hiring them. According to Texas law, all workers have the right to work without being forced to join a union or pay union fees. This “right-to-work” principle is based on the idea that workers should be protected without regard to their union status. In essence, the right to work is seen as the right to live.

In terms of termination, the state of Texas operates under the principle of “employment-at-will,”  which grants employers the right to terminate their employees at any time and for any reason, with no requirement to provide justification or warning. In turn, employees in Texas have the freedom to resign from their positions at any time and for any reason without the need to explain. However, this doctrine does have specific exemptions that employers must comply with. It is considered “wrongful termination” if an employer terminates an employee based on the following criteria:

• Sexual orientation
• Military duty
• Veteran status
• Reporting or lodging a complaint about suspected wrongful conduct related to employment discrimination,  standards of the Occupational Safety and Health Act (OSHA), wages, and other similar issues.
• Race, color, religion, gender, pregnancy, age, national origin, or disability
• Jury duty
• Voting
• Union membership

When an employment relationship comes to an end in Texas, the employer is required to follow specific rules regarding the final payment of wages. The following two conditions apply:

• If an employee has been discharged, the employer must make a final wage payment within 6 calendar days.
• If an employee resigns, the employer must make a final wage payment no later than the next regularly scheduled payday.

The Texas Occupational Safety and Health Consultation (OSHCON) program is available to assist private employers in recognizing and eliminating workplace hazards and maintaining a hazard-free working environment. OSHA offices located in Texas

Now, we will discuss some key labor laws in Texas that may not be related to the categories we have previously explored. Some of these regulations include:

• Cobra Laws – In Texas, employees and their dependents who are eligible for health insurance are entitled to continue their coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA) in case of employment termination. COBRA is a federal law that applies to companies with 20 or more workers. It lets them keep their health insurance for 18 to 36 months after an employee leaves the company. Moreover, there is also a state insurance continuation under Texas law. This continuation allows employees or their dependents, who are not eligible for COBRA or have exhausted their COBRA coverage, to remain on their former employer’s health plan for up to 9 months. If an employee has exhausted their COBRA coverage, they are entitled to an additional 6 months of health insurance coverage. It is important to note that the Texas insurance continuation applies only to group health benefit plans and does not include self-funded ERISA health care plans. 
• OSHA Law – The Occupational Safety and Health Act (OSHA) is a federal law that is meant to make sure that workers in Texas have a safe and healthy place to work. OSHA’s safety standards and regulations have significantly reduced workplace accidents and tragedies. However, it is important to note that OSHA only applies to private employers and their employees. The Texas Occupational Safety and Health Consultation (OSHCON) program is available to assist private employers in recognizing and eliminating workplace hazards and maintaining a hazard-free working environment. OSHA offices located in Texas. Under OSHA, hazards are grouped into six categories, including:
  • Biological hazards:  Mold, pests, insects, and other similar hazards.
  • Chemical and dust hazards: Pesticides, asbestos, and other chemical hazards.
  • Work organization hazards: Stress triggers such as workplace violence, excessive workload, and similar hazards.
  • Safety hazards: Hazards that could result in physical harm, such as slips, trips, and falls.
  • Physical hazards: Hazards such as noise, radiation, temperature extremes, and other similar physical hazards.
  • Ergonomic hazards: Hazards such as repetition, lifting, awkward postures, and other similar ergonomic hazards.
• Whistleblower Laws – are in place to protect employees who report illegal or unethical behavior in the workplace. The Whistleblower Act in Texas gives these kinds of protections to public employees who report a law violation in good faith to the right law enforcement agency. The law prohibits retaliation such as pay cuts, dismissal, or any other adverse employment action taken against an employee who has “blown the whistle”. If a state or local government employee is hurt by a negative employment action, like being wrongfully suspended or fired, they can sue the government for injunctive relief, actual losses, court fees, and affordable attorney’s fees. The employee is also entitled to reinstatement to their former position and all wages and fringe benefits lost during their absence. If a public worker thinks he was treated unfairly because he was a whistleblower, he must start the grievance process in his district within 90 days of what he thinks happened. A supervisor can face a $15,000 civil penalty for taking an adverse employment action against a public worker.
• Recordkeeping Laws – In Texas, employers must keep records about their employees for certain amounts of time. The types of records that must be kept and the duration for which they should be retained are as follows:
  • Compensation records – at least 4 years
  • Family and Medical Leave (FMLA) records at least 3 years after the leave ends
  • I-9 records – at least 3 years after the date of hire or 1 year after the date of separation, whichever is later
  • Hiring records – at least 1 year after the date of hire
  • Disability-related records (ADA) – at least 1 year after the date the document was created or the personnel action was taken, whichever comes later
  • Benefit-related information (ERISA and HIPAA) – at least 6 years after the date of document creation
  • Age-discrimination documentation (ADEA) Payroll records – at least 3 years
  • Documents concerning personnel actions – at least 1 year
  • OSHA records – at least 5 years
  • Hazardous materials records – at least 30 years after the date of employment separation
  • State discrimination laws – at least 1 year after the date of separation
  • Payroll tax records kept by the IRS – at least 4 years after the end of the period covered by the records

  Furthermore, under the Fair Labor Standards Act, records related to non-exempt employees must be kept for at least 3 years. These records include information such as name, residence, date of birth if under 19, gender, and profession. They also include working hours per day and week, when and which day of the week the employee’s workweek actually begins, the basis for payment of the employee’s compensation (for instance, $10 per hour or $380 per week), wage per hour, pay date and period, total earnings from overtime, payroll totals, and payment adjustments, such as wage garnishments or bonuses.

There are no specific state-level regulations in Texas related to employee wages, so employers operating within the state are required to abide by federal wage laws enforced by the US Department of Labor (DOL). This mandates all employers in the US to pay their employees at least the federally mandated minimum wage, unless otherwise exempt. The same holds for Texas-based employers as well. In terms of wage regulations, there are certain key factors that Texas-based employers need to keep in mind. These include the state minimum wage, hourly wage for tipped employees, and the subminimum wage.

As mentioned earlier, when it comes to the minimum wage rate, Texas follows the federal law which applies to all states in the US. This means that employees in Texas who are not exempt from the minimum wage requirement are entitled to receive a rate of at least $7.25 per hour of work. This rate applies to all such employees regardless of the industry they work in or the size of the employer.

Adhering to minimum wage requirements is an essential labor standard that guarantees fair compensation for workers. By maintaining this standard, both workers and the economy benefit from a livable wage and a level playing field for businesses. Texas employers must comply with minimum wage requirements to avoid any unfavorable legal or financial ramifications.

In Texas, any employee who earns more than $20 in tips per month is classified as a tipped employee under the regulations set by the US Department of Labor. Tipped employees in the state receive a base hourly wage of $2.13, which is lower than the federally mandated minimum wage. To ensure that the hourly wage and tips combined meet the minimum wage requirement of $7.25 per hour, employers are required to make up the difference if the employee’s earnings fall short. This is known as a “tip credit,” and employers are responsible for ensuring that their employees earn at least the minimum wage after taking tips into account.

It’s important to keep in mind that there are certain categories of employees who may be exempt from the minimum wage requirement. The laws at both federal and state levels coincide regarding exemptions from the minimum wage. According to the Fair Labor Standards Act (FLSA), employees who are not subject to the minimum wage include:

• Executive, professional, and administrative employees who earn at least $684 per week
• Computer employees who earn at least $684 per week or $27.63 per hour
• Highly compensated employees who earn $107,432 per year or more
• Farm workers
• Workers in the fishing industries
• Seasonal and leisure workers

Download U.S. FLSA Exemption Salary Threshold 2024 Poster now.

In addition to the federal exemptions, Texas has its own set of exemptions that employers need to adhere to. These include exemptions for:

• Employees of religious, educational, charitable, or nonprofit organizations
• Professionals, salespersons, or public officials
• Domestic workers
• Certain youths and students
• Inmates who are employed while serving time in the institutional division of the Texas Department of Criminal Justice or local jails
• Family members working for a family business (referring to the employer’s brother, sister, brother-in-law, sister-in-law, child, spouse, parent, son-in-law, daughter-in-law, ward, or person in loco parentis to the employee)
• Employees of amusement and recreational establishment
• Non-agricultural employers that are not liable for state unemployment contributions
• Those employed in dairy farming and the production of livestock
• Sheltered workshops for individuals with disabilities

Employers need to provide fair compensation to their employees. However, in certain situations, employers may be allowed to pay a wage less than the minimum wage. This is known as a subminimum wage, which typically applies to workers who have a disability or are otherwise unable to perform certain tasks at the same level as non-disabled workers. In Texas, the subminimum wage may be paid to specific categories of individuals, such as patients or clients of the Texas Department of Mental Health and Mental Retardation. The hourly wage paid to these individuals is compensated at a percentage of the base wage and is determined by the person’s productive capacity in comparison to an employee who is not mentally impaired. Other categories of individuals who may be eligible for a subminimum wage in Texas include those who are mentally impaired and have weakened productive capacity, assistants who help to operate the facility as part of their therapy, and trainees in a sheltered workshop or similar program.

Employers in Texas are required to pay non-exempt workers in a fair and consistent manner, at least twice a month on specifically designated paydays. If the employer does not establish a payment schedule, the paydays are automatically set on the first and fifteenth days of each month. Workers who are exempted under the Fair Labor Standards Act (FLSA) have a modified payment schedule. According to FLSA regulations, these employees must receive payment at least once per month.

You can track employee time according to Texas labor requirements using Jibble.

In Texas, non-exempt employees are entitled to receive overtime pay at a rate of one and a half (1.5) times their regular pay for any hours worked more than 40 hours in a workweek spanning 7 days. This is known as the “overtime rule,” and it is intended to ensure that employees are compensated fairly for their extra effort and time at work.

In Texas, certain employees are exempt from receiving overtime pay, despite the regulations stating that non-exempt employees are eligible for overtime compensation. These exempt employees include those who are:

• Piece rate pay employees that fall under certain criteria
• Retail or service establishment employees who earn more than half of their income from commissions and whose regular rates are at least one and one-half (1.5) times the minimum wage
• Local electric railway, trolley, or bus carrier employees
• Public agency employees who receive paid time off for working extra hours
• Certain rail and air carrier employees
• Outside buyers of poultry, eggs, cream, or milk in their natural state
• Seamen on any vessel
• Agricultural employees
• Employees who process maple into non-refined sugar or syrup
• Taxicab company drivers
• Motion picture theater employees

Registered nurses paid on an hourly basis are entitled to overtime under federal law. However, hospitals may not demand that nurses work mandatory overtime, and nurses may refuse to work extra hours.

Under federal law, employees who earn a fixed salary are typically exempt from receiving overtime pay. However, the Fluctuating Workweek Method (FWW) provides an exception to this rule, allowing certain salaried employees to receive overtime compensation at a rate of one-half (½) times their regular hourly rate. To qualify for overtime pay under the FWW, eligible employees must have a fluctuating workweek, meaning they sometimes work more or fewer than 40 hours a week. Additionally, their minimum hourly wage must equal $7.25 per hour.

As per both federal and state regulations, employers are not legally required to offer their workers rest or meal breaks. The decision to provide such benefits rests entirely upon the employer’s discretion.

Employers need to adhere to the following regulations when providing breaks to their employees. If a break lasts for 20 minutes or less, the employer must compensate the employee for that time. On the other hand, if an employee takes a meal break that lasts for 30 minutes or more, it doesn’t have to be paid, and the employee should be completely relieved of their duties. However, if an employee is required to work during a meal break, such as customer service agents or call center employees, such breaks must be compensated.

It’s worth noting that construction workers employed in Austin, Texas, are entitled to a rest break of at least 10 minutes for every four hours worked.

When it comes to breastfeeding in the workplace, Texas doesn’t have any state ordinances in place. However, it’s worth noting that non-exempt breastfeeding employees are still protected by federal law. As per federal regulations, employees must be given a “reasonable break time” whenever they need to express milk. These breaks must be made available for up to one year after the child’s birth and do not have to be compensated. Further, employers are also required to provide a separate room to express milk, which cannot be a restroom. This ensures that breastfeeding employees have a clean and private space to pump, which is essential for their comfort and well-being. 

When it comes to leave days in Texas, there are two distinct types: required leave and non-required leave.

The following are the leave benefits that Texas employers are required to offer to their employees. These benefits primarily apply to employees working in government, and they include:

• Sick Leave (Public Employers) – For state employees in Texas, sick leave begins to accrue from the first day of employment. Full-time employees can accrue up to 8 hours of sick leave for each month of employment, while part-time employees accrue sick leave on a proportionate basis. However, to begin accruing sick leave, employees who meet the qualifications must work a minimum of 20 hours per week for at least 4 and a half months. This sick leave is paid and may be used for various reasons, including sickness, injury, pregnancy, confinement, or providing care for an immediate family member who is ill, such as a spouse, child, or parent. If an employee wishes to take more than three days of paid sick leave, they must provide a doctor’s certificate stating the reason for their absence. In addition to standard sick leave, parents with children attending nursery school through 12th grade are eligible for an additional 8 hours of sick leave per year. This time off may be used for educational activities such as classroom programs, field trips, music or theater programs, and more.
• Family and Medical Leave (FMLA) – The Family and Medical Leave Act (FMLA) is a federal law that provides eligible employees with up to 12 weeks of unpaid leave per year. In order to be eligible for FMLA, employees need to have been employed by their current employer for a minimum of 12 months or 1,250 hours within the past 12 months. Further, it is available to a wide range of employees, including all state employees, public and private elementary or secondary school employees, and workers employed in companies that have at least 50 workers. The types of leave covered by FMLA include the birth, adoption, or fostering of a child, the care of an immediate family member with a serious health condition, as well as the employee’s own serious health condition. However, it’s important to note that under Texas law, employees are required to exhaust all their paid sick leave and vacation days before requesting a leave of absence under the FMLA.
• Parental Leave (Certain Employees) – Texas state employees who have worked less than 12 months or 1,250 hours in 12 months are eligible for parental leave, which is not paid and cannot exceed 12 weeks. Parental leave becomes effective on the date of birth of a natural child or the adoption or foster care placement, provided that the foster child is under the age of three. This leave is different from the Family and Medical Leave Act (FMLA), which has stricter eligibility requirements and provides unpaid leave for a broader range of reasons. However, similar to the FMLA, employees must first use all available paid vacation and sick leave before utilizing their parental leave benefits.
• Emergency Leave (Public Employers) – This leave is available in the event of the death of an employee’s family member, including the passing of a spouse, parent, brother, sister, grandparent, grandchild, or child. In Texas state, employees are entitled to paid time off to grieve and attend to family matters in such cases as it is important for employees’ mental and emotional well-being.
• Military Service Leave (Public Employers) – This leave ensures that employees who are doing their military duties or called to serve during times of crisis can do so without sacrificing their financial security. Public officers or employees in Texas who are members of the Texas military forces, reserve components of the federal armed forces, or a state or federal urban search and rescue team can take up to 15 paid days off a year from October 1 to September 30 to serve in the military or get authorized training. Also, if there is a disaster, eligible employees or officers are entitled to a paid leave of absence of up to 7 days per year and relief of duty for each day they are called to active duty during the disaster.
• Volunteer services Leave (Public Employers) – This leave is designed to provide these employees with the time they need to attend emergency training and to respond to emergencies such as fires, medical emergencies, or search and rescue missions. Volunteer firefighters, emergency medical services (EMS) volunteers, and search and rescue volunteers who work for the state of Texas can take up to 5 paid days off per year to do their volunteer work.
• Administrative Leave (Public Employers) – This paid leave is a way for employers to reward and motivate employees who have demonstrated exceptional work performance. In recognition of outstanding performance at work, Texas state employees may be granted a special type of leave, called “merit leave”. Eligible employees can receive up to 32 hours of paid merit leave per year.
• Voting Absence (Public Employers) – In Texas, state agencies must give their workers enough time off and pay so they can vote in any national, state, or local election.
• Jury Service Leave – This leave shows employees how important it is to serve on a jury and encourages them to do so. In Texas, employers have to excuse their workers if they are called to jury duty. However, Texas law states that employers don’t have to pay workers for the time they miss from work because they have to serve on a jury.
• Leave as an Organ or Bone Marrow Donor (Public Employers) – Employees who choose to donate bone marrow are eligible for a paid absence of up to 5 working days per year. Similarly, employees who choose to donate one or more organs are eligible for a paid absence of up to 30 working days.
• Donors of Blood Leave (Public Employers) – State workers who want to give blood are allowed to take paid time off for a total of four days off per fiscal year to do so. Before taking time off, employees must get permission from their employer. 
• Holidays (Public Employers) – Workers in Texas state, regardless of their employment status, whether they are temporary, part-time, or paid by the hour, have the right to take a paid day off on both national and state holidays. Eligible employees may also receive a paid day off before or after a holiday, or on both days, provided that those days are workdays. However, if a holiday falls on a Saturday or Sunday, or if the General Appropriations Act prohibits public offices from observing a holiday, employees will not receive a leave of absence.
• Vacation Time (Public Employers) – Except for those who work in higher education, teach, or have been in their jobs for less than a year, all state employees in Texas are entitled to paid vacation time. Full-time employees accrue vacation leave based on their years of service, and the vacation leave accrues proportionately for part-time employees. Outlined below is the vacation leave accumulation plan for full-time staff members:

In Texas, employers have wide discretion when it comes to granting leave benefits for private employees, which may be paid or unpaid. While some employers offer paid leave, others may not offer any leave at all.

Here is a table of holidays observed in Texas:

When it comes to child labor provisions in Texas, there are specific laws in place to ensure that employees under 18 years of age are protected. However, it’s important to note that Texas law prohibits minors under the age of 14 from working, except in certain situations such as working for a business owned by a parent or legal custodian, or as actors and performers. For minors who are eligible to work, child labor laws in Texas offer some important protections. When it comes to the rest or meal periods for minors in Texas, it is important to understand that there are no legal requirements for employers to provide these breaks. State and federal laws do not require employers to give their young workers breaks or meal times. These laws help to make sure that minors can work in a safe and healthy place and that they can keep up with their schoolwork while they are working.

When it comes to working hour restrictions for minors in Texas, it’s important to understand that these restrictions only apply to employees aged 14 and 15. Both state and federal laws do apply, and employers and employees need to be familiar with both.

According to Texas law, the specific time restrictions for minors aged 14 and 15 include:

• Not working more than 8 hours per day for a total of 48 hours per week.
• Not working before 5 a.m. and after 10 p.m. following a school day.
• Not working after midnight on a non-school day.

Under federal law, the specific time restrictions for minors aged 14 and 15 include:

• Not working during school hours.
• Working no more than 8 hours a day and 40 hours a week on non-school days.
• Working no more than 3 hours a day and 18 hours a week on school days.
• Working between 7 a.m. and 7 p.m. during the school year, except between June 1st and Labor Day when they may work two hours longer, from 7 a.m. to 9 p.m.

In Texas, a hardship waiver can be given by the authorities if they find out that a child is going through hard times. Once granted, the child will no longer be bound by the hour limitations.  

The forbidden and hazardous jobs for child labor in Texas are categorized into two age groups, namely restricted jobs for 14 and 15-year-olds and restricted jobs for 16 and 17-year-olds with certain exceptions. These occupations can be found in the table below:

More details can be found here: A comprehensive catalog of jobs that are forbidden for minors in Texas.