The Texas Labor Law Guide

The lowest hourly pay rate employers are permitted to pay is referred to as minimum wage. While the federal minimum wage serves as a baseline, states aren’t required to adopt it but can adopt minimum wages according to their own local circumstances. In terms of Texas's own wage and hour laws, here's what you need to keep in mind.

$7.25 per hour for most Texas employees 

Texas law bans its cities and counties from establishing minimum wage requirements for private employers that differ from state minimum wage.

→ Learn more about Deputy's labor law compliance software

Tipped minimum wage means employers can offset part of an employee’s salary if they’re receiving hourly tips. Nevertheless, employers must still commit to a minimum hourly rate, even with tips included. Tipped minimum wage doesn’t remove the need to pay a base salary entirely.

In Texas, the baseline tipped minimum wage is $2.13 per hour

This is the minimum level needed to meet the federally mandated minimum wage, so all Texas cities adhere to it in their own employee laws.

Texas doesn’t have its own state overtime law so Texas employers should follow the federal Fair Labor Standards Act (FLSA). It stipulates that employees receive overtime pay at a rate of 1.5 times their regular rate of pay for all hours worked in excess of 40 in a workweek.

There's no state-specific law specifying requirements for meal or rest breaks in Texas. The state follows the federal FLSA framework in not requiring employers to provide meal and rest breaks.

Employers that opt for meal and rest breaks must pay their employees for that time as long as they're under 20 minutes. If the break period lasts more than 30 minutes, compensation is only necessary for employees still engaged in work-related tasks during their breaks. For employees completely relieved of duties during their over 30-minute break, no compensation is required.

→ Find out how Deputy can help you simplify meal and rest break compliance

Texas state law allows employers a large amount of latitude in deciding their own leave and holiday policies. Businesses can set their own holiday and leave standards, paid or unpaid, as they see fit. The only real requirement is for employers to abide by any contractual agreement they've committed to. 

Vacation leave
Texas has no state-specific requirements concerning vacation leave, but employers that offer it are bound by the terms of the agreement. How to count vacation time and whether to roll unused days into the following year are solely at the employer's discretion, but they can't change the terms of a contractually agreed vacation schedule after the fact. Texas is a “use it or lose it” state, meaning unused vacation hours don't have to roll over into the following work year unless the employer allows it. 

Paid sick leave
Texas has no paid sick leave laws or requirements for Texas employers. It is up to each individual employer whether or not to provide their employees with paid sick leave. 

Holidays
Texas leaves policies concerning holidays to the individual employer. As far as state law is concerned, holiday hours are normal working hours, but individual employers can and most often do set their own standards for the holiday seasons.

→ Learn more about Deputy's leave management software

Texas child labor laws apply to all Texas employees who are under 18 years old. It's illegal in the state of Texas to employ any minor under the age of 14. The only exceptions are in certain, specially approved roles, such as mowing lawns or newspaper delivery. 

Minors aged 14 and 15 have the following restrictions on hours and days of work under Texas state law: 

• Can work no more than 8 hours in one day.

• Can work no more than 48 hours in one week.

• Cannot start work before 5 a.m.

• Cannot stay at work after 10 p.m. on a school night.

• Cannot work past midnight on a non-school night.

Federal law has different restrictions, so employers who are covered by federal law should follow the law that is most beneficial to the minor. Federal law places the following restrictions on 14-15 year olds’ hours of work:

• May not work during school hours.

• Can work no more than 8 hours in a day or 40 hours in a week when school is not in session.

• Can work no more than 3 hours in a day or 18 hours in a week when school is in session.

• Can work only between 7 a.m. and 7 p.m. during the school year. (9 p.m. from June 1 to Labor Day).

Fewer restrictions exist for minors ages 16 and 17, but there are various off-limits occupations owing to their on-the-job hazards. These include: 

• Manufacturing

• Mining

• Operations involving powered machinery except for office machines

• Occupations that need a motor vehicle

In Texas, the chief concern with both hiring and firing laws is remaining compliant with state and federal anti-discrimination laws. These laws prohibit discrimination in employment based on an employee’s legally protected characteristics such as:

• Race

• Sex

• Religion

• Color

• National origin

• Age (40 or older)

• Genetic Information

• Disability

Hiring
The Texas Workforce Commission enforces Texas’ antidiscrimination in employment laws, which ban employers from refusing to hire employees because of their legally protected characteristics (listed above). 

Firing
As with other aspects of Texas labor law, businesses have wide discretion in making termination decisions. This is an “at-will” state, which means employers don't need a specific justification for letting somebody go. However, being an at-will state doesn't give employers the right to discriminate or retaliate against employees by firing them for an unlawful reason.