Texas Employment Law

Texas Labor Code Chapter 21 covers employers with 15+ employees. At-will, right-to-work state with limited protections. Does not include sexual orientation or gender identity. Damages capped by employer size.

At-Will

Yes

Right-to-Work

Yes

EEOC Deferral

300 days

Min. Wage

$7.25

Texas State Laws (3)

TX Labor Code Ch. 21

Tex. Lab. Code Ann. §§ 21.001-21.556

180 days
15+ employees

The Texas Commission on Human Rights Act (now codified as Chapter 21 of the Texas Labor Code) prohibits employment discrimination based on race, color, disability, religion, sex, national origin, age (40+), and genetic information. The Act covers employers with 15 or more employees and complaints must be filed within 180 days with the Texas Workforce Commission Civil Rights Division. Texas does not include sexual orientation or gender identity as protected classes at the state level.

Protected Classes

racecolordisabilityreligionsexnational originage (40+)genetic information

Key Provisions

  • Closely mirrors federal Title VII and ADA with similar employer thresholds and damage caps
  • Texas Workforce Commission Civil Rights Division investigates complaints under a worksharing agreement with the EEOC
  • Does not include sexual orientation or gender identity as protected classes at the state level; damage caps mirror federal Title VII caps

Remedies

Back payReinstatementCompensatory damages (capped based on employer size)Punitive damages (capped based on employer size)Attorney fees and costsInjunctive relief
File with: Texas Workforce Commission, Civil Rights Division (TWC-CRD)180 days from the discriminatory act

TX Payday

Tex. Lab. Code Ann. §§ 61.001-61.095

180 days
1+ employees

The Texas Payday Law requires employers to pay employees their full wages on regularly scheduled paydays and to provide final paychecks within specific timeframes after separation. The law covers all employers with one or more employees and provides a mechanism for employees to file wage claims with the Texas Workforce Commission when an employer fails to pay wages owed. The Act applies to all forms of compensation that have been earned and are due to the employee.

Key Provisions

  • Requires employers to pay all wages on regular paydays and within specific timeframes upon termination
  • Employees may file wage claims with the Texas Workforce Commission within 180 days
  • Final paycheck due within 6 days of involuntary termination or by next regular payday for voluntary resignation

Remedies

Unpaid wagesAdministrative penaltiesWage lien on employer's property
File with: Texas Workforce Commission180 days from the date wages were due

TX WC Retaliation

Tex. Lab. Code Ann. § 451.001

days
1+ employees

Texas Labor Code Section 451.001 prohibits employers from terminating or retaliating against employees for filing a workers' compensation claim in good faith, hiring a lawyer to represent them in a workers' compensation claim, instituting or causing to be instituted a workers' compensation proceeding, or testifying in a workers' compensation proceeding. The statute covers all employers regardless of size and provides a private right of action for wrongful termination.

Key Provisions

  • Prohibits employers from terminating or retaliating against employees who file workers' compensation claims
  • Covers filing, hiring counsel for, instituting, or testifying in workers' compensation proceedings
  • Applies to all employers regardless of size; private right of action in state district court

Remedies

ReinstatementBack pay and lost compensationCompensatory damagesReasonable attorney fees and costs
File with: Private lawsuit (state court)2 years from the retaliatory act

Local Ordinances in Texas (2)

Austin

Austin FCH

Austin City Code Ch. 4-16

days
15+ employees

The Austin Fair Chance Hiring Ordinance is a ban-the-box law that prohibits private employers with 15 or more employees from inquiring about a job applicant's criminal history before the initial interview. This ordinance provides substantially broader worker protections than Texas state law, which has no statewide ban-the-box requirement for private employers.

Protected Classes

criminal history/conviction record
Dallas

Dallas FHHRO

Dallas City Code Ch. 46

days
1+ employees

The Dallas Fair Housing and Human Rights Ordinance provides employment discrimination protections that are substantially more protective than Texas state law. It covers all employers with 1 or more employees and includes sexual orientation and gender identity and expression as protected classes, which are not covered under the Texas Commission on Human Rights Act. The ordinance is enforced by the Dallas Office of Equity and Inclusion.

Protected Classes

racecoloragereligionsexsexual orientationgender identity and expressiondisabilitynational originfamilial statusmarital statusmilitary/veteran status

Federal Laws That Apply in Texas

These federal statutes protect workers nationwide, including in Texas. As a deferral state, the EEOC filing deadline is extended to 300 days for most claims.

Check which laws apply to your situation in Texas

Our free assessment identifies applicable federal, state, and local protections based on your specific circumstances.

Check My Rights

This information is provided for educational purposes only and does not constitute legal advice.Texas laws are subject to legislative changes. Consult a qualified employment attorney in Texas for advice about your specific situation. Last reviewed: February 2025.