Texas Employment Law and Compliance Resources
MINIMUM WAGE & OVERTIME PAY
Texas Minimum Wage: Matches the federal rate of $7.25/hour.
Overtime Pay: 1.5x regular pay after 40 hours per week for non-exempt employees, per FLSA rules.
TIPPED MINIMUM WAGE
Base Wage: Tipped employees in Texas earn a base wage of $2.13/hour, but total earnings (wages + tips) must meet the federal minimum wage of $7.25/hour.
Tip Credit: Employers can claim up to $5.12/hour in tip credits but must make up the difference if employees don’t reach $7.25/hour.
WAITING & ON-CALL TIME
Federal Standards: Texas follows federal rules on waiting and on-call time. If an employee is engaged to wait, meaning they must remain available and ready to work, this time must be paid. Example: A mechanic waiting on-site for customers.
On-Call Pay: If an employee stays at the workplace while on call, the time must be paid. If they are off-site, pay is generally not required—unless employer restrictions significantly limit their activities.
MEAL BREAKS & REST PERIODS
Federal Standards: Texas follows federal rules for meal and rest breaks. If employers provide meal breaks, they must be paid if they last less than 20 minutes. If the break lasts longer than 30 minutes, it's considered a meal break and doesn’t need to be paid, as long as the employee is free from all duties.
Paid Leave & Final Pay
Paid Leave
Texas does not have a paid leave law that mandates employers provide paid time off when employees get sick or go on vacation.
Employers can voluntarily offer paid sick leave, vacation, and PTO; if they do, they should have their own policy and honor it. They are also allowed to set use-it-or-lose-it policies for unused vacation time.
Eligible Texas employees may qualify for up to 12 weeks of unpaid, job-protected leave under the federal Family and Medical Leave Act (FMLA). Unlike California or New York, Texas has no paid family leave program.
Final Pay
Texas employees who resigned or quit voluntarily must be paid by the next scheduled payday. Those who were let go or terminated must receive their final paycheck within six days.
Child Labor Laws
In Texas, youth workers who are 16 or 17 are not restricted in the number of hours or times of day they work. Only those who are 14 and 15 are subject to work-hour restrictions. It’s important to note that all businesses should adhere to state laws, but businesses covered by the FLSA must follow federal law.
Under Texas child labor laws, workers 14 and 15 are allowed to work no more than 8 hours a day and 48 hours a week. Work hours can’t start before 5 a.m.. They can’t also work after 10PM on a day followed by a school day, including summer school sessions. On days not followed by a school day, they are prohibited from working past midnight.
Texas State Payroll Taxes
State Unemployment Tax
Texas’s state unemployment program supports the Unemployment Compensation Fund (UCF), which pays for unemployment benefits to eligible workers. This tax is only paid by the employer and not taken from employee wages.
An employer’s tax liability will depend on the employment category—regular, domestic, and agricultural. Unemployment tax rates vary from 0.25% to 6.25%, and the maximum taxable wages for employees is currently at $9,000.
Other Laws
Jury Duty
Employers are not required to pay employees who are summoned for jury duty.
Other Resources on
State Labor Laws
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