Employee Rights Guide: Texas Employment Law in Houston

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Introduction: Why Houston Employees Need to Know Their Rights

Houston is the nation’s energy capital and one of the fastest-growing labor markets in the country. From oilfield services in the Energy Corridor to cutting-edge healthcare in the Texas Medical Center, more than 3 million people work in the Houston–The Woodlands–Sugar Land metropolitan area. With such a varied workforce, disputes over unpaid overtime, discriminatory firings, or workplace harassment are unfortunately common. Understanding Texas employment law Houston provisions—and how they differ from federal regulations—can make the difference between protecting your livelihood and losing valuable legal claims forever.

Texas is an at-will employment state, but “at-will” does not mean “no rules.” Federal statutes like Title VII of the Civil Rights Act, the Fair Labor Standards Act (FLSA), and the Family and Medical Leave Act (FMLA) still apply. In addition, the Texas Labor Code creates state-level protections covering discrimination, retaliation, and wage payment. Houston employees therefore have multiple layers of legal safeguards, each with its own filing deadlines and procedural hoops. This guide explains:

• Key rights under Texas and federal law

• The most common employment disputes in Houston

• Where and when to file complaints—Texas Workforce Commission (TWC), Equal Employment Opportunity Commission (EEOC), or court

• Practical, step-by-step actions employees can take immediately

• How an experienced Texas employment attorney can maximize your recovery

If you think your rights have been violated—or even if you’re just unsure—read on. Deadlines for workplace claims come fast. Preserve your options today, and remember: If you believe your workplace rights have been violated, call Louis Law Group for a free case evaluation at 833-657-4812.

Understanding Your Employment Rights in Texas

At-Will Employment and Its Exceptions

Like most U.S. states, Texas follows the at-will doctrine, meaning an employer can terminate employment for any lawful reason—or no reason—without advanced notice. However, several important exceptions protect Houston employee rights:

• Statutory Exceptions – Federal and state anti-discrimination laws prohibit terminations based on race, color, national origin, religion, sex (including pregnancy, sexual orientation, and gender identity), disability, age (40+), or genetic information.

• Public Policy Exception – Texas courts recognize wrongful discharge if an employee is fired for refusing to perform an illegal act or for exercising a statutory right, such as filing a workers’ compensation claim (Sabine Pilot Serv., Inc. v. Hauck, 1985).

• Contractual Exceptions – Written contracts, collective bargaining agreements, or even well-drafted employee handbooks can limit an employer’s ability to terminate without cause.

Wage and Hour Protections

The federal FLSA sets the floor for minimum wage ($7.25 per hour) and overtime (time-and-a-half for hours above 40 in a workweek). Texas has not adopted a higher state minimum wage, so the federal rate applies. Still, employees in Houston often lose thousands because employers:

• Misclassify them as exempt salaried workers

• Fail to count all hours worked (e.g., off-the-clock prep time, travel between job sites)

• Make illegal deductions that drop wages below minimum wage

Under the FLSA, workers can recover unpaid wages plus an equal amount in “liquidated damages,” effectively doubling the back pay, along with attorney’s fees and costs.

Anti-Discrimination & Harassment Laws

Title VII, the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA), and the Genetic Information Nondiscrimination Act (GINA) apply nationwide. Complementing those, Texas Labor Code Chapter 21 extends similar protections and sometimes offers broader coverage (e.g., for employers with 15+ employees instead of federal 20-employee thresholds under ADEA). Both federal and state statutes require complaints to be filed with the TWC Civil Rights Division or the EEOC before a lawsuit—called the “administrative exhaustion” requirement.

Common Employment Disputes in Texas

Below are the claims most frequently filed by Houston workers:

1. Wrongful Termination

Although Texas is at-will, terminations motivated by discrimination, retaliation, or protected leave violations cross the line. For example, an oil-rig engineer dismissed days after requesting FMLA leave may have a viable wrongful termination claim.

2. Retaliation for Whistleblowing

Federal law (e.g., Sarbanes–Oxley for publicly traded companies) and Texas statutes (e.g., Texas Whistleblower Act for public employees) bar employers from punishing workers who report unsafe conditions, fraud, or legal violations. Retaliation claims now make up the largest single category of EEOC complaints nationwide.

3. Wage and Hour Violations

Houston’s service, construction, and healthcare sectors often rely on overtime hours. Employers who re-label employees as “independent contractors” or pay a day-rate without time-and-a-half risk FLSA lawsuits. Two or more employees can bring a “collective action,” expanding potential damages considerably.

4. Workplace Discrimination & Harassment

Bias can be obvious—racial slurs, derogatory jokes—or subtle, such as systematically denying promotion opportunities to older workers. Both hostile work environment harassment and “quid pro quo” sexual harassment are illegal under Title VII and Texas Labor Code § 21.051.

5. Family & Medical Leave Interference

Under the FMLA, eligible employees (those who worked 1,250 hours in the prior 12 months for an employer with 50+ workers within 75 miles) may take up to 12 weeks of unpaid, job-protected leave annually. Terminating or demoting an employee for exercising this right constitutes interference or retaliation.

Texas Legal Protections & Regulatory Framework

Texas Labor Code Overview

The Texas Labor Code codifies wage payment rules, discrimination bans, and retaliation protections. Important sections include:

• Chapter 21 – Texas Commission on Human Rights Act (TCHRA): Mirrors federal discrimination law but provides state-level remedies.

• Chapter 61 – Texas Payday Law: Requires employers to pay all owed wages on regular paydays; enforced by the TWC.

• Chapter 451 – Prohibits firing or discriminating against employees for filing workers’ compensation claims.

Texas Workforce Commission (TWC) Complaint Process

The TWC enforces state wage, discrimination, and unemployment insurance laws. Houston workers can file:

• Wage claims within 180 days of when wages were due (Texas Payday Law).

• Discrimination or retaliation claims within 180 days of the unlawful act (Chapter 21).

Complaints may be filed online, by mail, or in person. The TWC investigates and can issue a “right-to-sue” letter, allowing the employee to file in state court.

EEOC Dual-Filing in Texas

Because the TWC is a “Fair Employment Practices Agency,” a single filing with either the TWC or the EEOC satisfies state and federal requirements (“dual filing”). Houston employees generally have 300 days from the discriminatory act to file with the EEOC. After the EEOC issues a Notice of Right to Sue, claimants have 90 days to file in federal court.

Statutes of Limitation Summary

• Unpaid wage claims under Texas Payday Law: 180 days

• FLSA unpaid overtime: 2 years (3 years for willful violations)

• Discrimination (EEOC): 300 days

• Workers’ compensation retaliation: 2 years

• Sabine Pilot wrongful discharge for refusing illegal acts: 2 years

Recent Texas Case Law Employees Should Know

• Waffle House, Inc. v. Williams (Tex. 2011) – Confirmed employees can recover tort damages for sexual harassment if conduct also meets civil assault elements.

• Burlington N. & Santa Fe Ry. Co. v. White (U.S. 2006) – U.S. Supreme Court (applicable in Texas) broadened retaliation definition to include any employer action that might dissuade a reasonable worker from making a complaint.

• Helix Energy Sols. Grp., Inc. v. Hewitt (5th Cir. 2021) – Clarified day-rate offshore workers may be non-exempt for FLSA overtime unless paid on a salary basis meeting regulatory tests.

Steps to Take After an Employment Dispute

Act promptly. Memories fade, electronic records disappear, and statutes of limitation run quickly.

1. Document Everything

• Keep copies of pay stubs, schedules, disciplinary write-ups, performance reviews, and emails.

• Use a contemporaneous journal to record incidents of harassment or retaliation, noting dates, times, witnesses, and direct quotes.

• Download or photograph company policies and handbooks that may define disciplinary procedures or wage classifications.

2. Report Internally (When Safe)

Many companies have grievance procedures that you must follow first. Submit your complaint in writing—email is best—so you create a time-stamped record. If you fear retaliation or the harasser is your direct supervisor, escalate to HR or a higher manager.

3. File External Complaints

Depending on the issue:

Unpaid wages – File a wage claim with the Texas Workforce Commission. Discrimination or retaliation – Dual-file with the EEOC Houston District Office and TWC Civil Rights Division.

• Safety violations – Report to OSHA’s Houston Area Office.

4. Preserve Electronic Evidence

Back up text messages, voicemails, and social-media posts on a personal device. Forward relevant emails to a personal, non-work account. Avoid recording conversations secretly; Texas is a “one-party consent” state, but some employers may still claim privacy violations.

5. Calculate Damages

Add up unpaid wages, lost benefits, emotional distress, and out-of-pocket job search costs. A knowledgeable attorney will also seek liquidated damages, statutory penalties, and attorney’s fees where available.

6. Consult an Attorney Early

Deadlines and procedural traps can kill a case before it starts. Many Houston employment lawyers offer free consultations and contingency-fee arrangements—no fee unless you recover.

When to Seek Legal Help in Texas

While some disputes resolve through HR or agency mediation, others require vigorous legal action. You should strongly consider contacting a Texas employment attorney if:

• You receive a Right-to-Sue notice from the EEOC or TWC.

• Your employer makes a settlement offer and asks you to sign a release.

• You suspect systemic violations affecting multiple employees (possible class or collective action).

• You have been fired after whistleblowing or taking protected leave.

Louis Law Group’s Houston office has decades of combined experience standing up to Fortune 500 employers and small businesses alike. We conduct rapid-response investigations, secure electronic evidence before it disappears, and pursue maximum damages in state or federal court. Our attorneys are licensed in all Texas state courts and the Southern District of Texas federal court.

Remember: If you believe your workplace rights have been violated, call Louis Law Group for a free case evaluation at 833-657-4812.

Local Resources & Next Steps

Texas Workforce Commission – File wage claims, unemployment benefits, or discrimination complaints. Houston area employees can also visit the local Workforce Solutions offices for in-person help. EEOC Houston District Office – 1919 Smith Street, 7th Floor, Houston, TX 77002. Texas Labor Code Chapter 21 – Full statutory text on discrimination and retaliation. Houston Bar Association LegalLine – Free telephone legal advice the first and third Wednesday of each month.

Whether you are a nurse denied overtime at the Texas Medical Center, a refinery worker harassed on the night shift, or a tech-startup coder fired after requesting parental leave, you have powerful legal tools at your disposal. Use them. Deadlines as short as 180 days can bar your claim forever.

Take the first step now:

• Write down exactly what happened, when, and who was involved.

• Gather pay records, emails, and witness contact information.

• Call Louis Law Group at 833-657-4812 for a confidential, no-cost review of your case.

Legal Disclaimer: This guide is for informational purposes only and does not create an attorney-client relationship. Laws change frequently; consult a qualified attorney about your specific situation.