Employment Law Guide for Workers in Dallas, Texas

Introduction: Why Dallas Workers Need to Know Their Rights

With a population topping 1.3 million and an economy anchored by finance, health care, technology, and the oil-and-gas supply chain, Dallas, Texas is one of the most dynamic labor markets in the United States. From Fortune 500 headquarters in downtown’s skyscrapers to thousands of warehouses along I-35, employees face a wide range of workplace challenges—unpaid overtime, discrimination, unsafe conditions, and sudden terminations. Although Texas is an at-will employment state, meaning an employer may terminate a worker for almost any lawful reason, state and federal statutes still offer robust protections. Knowing those laws—and how to enforce them—can help Dallas workers secure fair wages, safe conditions, and equal opportunity.

This guide highlights the key aspects of Texas employment law, explains common violations, and walks you through the complaint process with the Texas Workforce Commission (TWC) and the U.S. Equal Employment Opportunity Commission (EEOC). While the discussion slightly favors employees, all information is strictly factual and drawn from authoritative sources such as the Texas Labor Code, Title VII of the Civil Rights Act of 1964, and the Fair Labor Standards Act (FLSA).

Understanding Your Employment Rights in Texas

1. The At-Will Doctrine and Its Exceptions

Texas follows the common-law at-will rule: Either the employer or the employee may terminate the employment relationship at any time, with or without cause or notice. However, several statutory and public-policy exceptions limit this rule:

Statutory Discrimination Protections: Employers may not fire or discipline workers for reasons prohibited by Title VII, the Americans with Disabilities Act (ADA), the Texas Commission on Human Rights Act (TCHRA) (Texas Labor Code ch. 21), the Age Discrimination in Employment Act (ADEA), or the Genetic Information Nondiscrimination Act (GINA).

• Retaliation Claims: An employer may not retaliate against an employee for filing a discrimination charge, seeking workers’ compensation (Tex. Lab. Code § 451.001), reporting illegal activities (Texas Whistleblower Act for public employees), or asserting wage rights under the FLSA or Texas Payday Law.

• Written Employment Contracts and Collective Bargaining Agreements: If you are unionized or have an individual contract, termination must comply with the contract’s terms.

• Public Policy Exception: Texas courts recognize a narrow exception that prohibits termination for refusing to commit an illegal act. See Sabine Pilot Serv., Inc. v. Hauck, 687 S.W.2d 733 (Tex. 1985).

2. Wage and Hour Protections

Regardless of at-will status, employees are entitled to minimum wage and overtime under the Fair Labor Standards Act. Texas has not adopted a higher state minimum wage, so the federal rate—currently $7.25 per hour—applies. Non-exempt employees who work more than 40 hours in a workweek must receive overtime pay at 1.5 times their regular rate. Common occupations in Dallas that frequently face FLSA disputes include IT support, inside sales, and oilfield service technicians.

3. Anti-Discrimination Rights

Under the Texas Commission on Human Rights Act (TCHRA) and Title VII, employers with at least 15 employees may not discriminate based on race, color, religion, sex (including pregnancy, sexual orientation, and gender identity per EEOC guidance), or national origin. TCHRA also covers disability and age 40+. The Texas Labor Code mirrors much of Title VII but adds state-specific remedies such as capped compensatory damages aligned with federal standards (Tex. Lab. Code § 21.2585).

4. Leave and Accommodation Rights

• Family and Medical Leave Act (FMLA): Up to 12 weeks of unpaid, job-protected leave for qualifying medical and family reasons (employers with 50+ employees).

• ADA and TCHRA Reasonable Accommodations: Employers must accommodate qualified employees with disabilities unless doing so causes undue hardship.

• Military Leave: Uniformed Services Employment and Reemployment Rights Act (USERRA) grants reemployment rights to reservists and National Guard members—a significant Dallas demographic due to Joint Reserve Base Fort Worth.

Common Employment Law Violations in Texas

1. Unpaid Overtime and Misclassification

Tech startups along the Dallas “Silicon Prairie” corridor often label programmers “independent contractors” or “exempt” without meeting FLSA criteria, resulting in unpaid overtime claims. In 2023, the U.S. Department of Labor’s Wage and Hour Division recovered over $4 million in back wages from Texas employers for misclassification violations. The FLSA imposes a two-year statute of limitations—three years for willful violations—under 29 U.S.C. § 255(a).

2. Discrimination and Harassment

Dallas County District Court dockets show a steady rise in discrimination suits alleging race-based and sex-based adverse actions, reflecting broader EEOC trends. Harassment becomes actionable when it is sufficiently severe or pervasive to alter the terms of employment (see Oncale v. Sundowner Offshore Servs., Inc., 523 U.S. 75 (1998)).

3. Retaliation

Retaliation accounted for 56% of all EEOC charges filed in Texas in fiscal year 2022. Common retaliatory actions include demotion, isolation, or termination after an employee reports wage theft or files a discrimination complaint.

4. Wrongful Termination in Violation of Public Policy

Although rare, Texas courts recognize wrongful termination claims if an employee is fired solely for refusing to perform an illegal act. Dallas employers in regulated sectors—such as healthcare and oilfield services—should be particularly cautious, as whistleblower protections apply to certain federal contracts and OSHA safety complaints.

Texas Legal Protections & Employment Laws

1. Texas Labor Code Chapter 21 (TCHRA)

Modeled on Title VII, TCHRA provides a state forum for discrimination claims. Key points:

• Administrative Exhaustion: Employees must file a charge with the TWC Civil Rights Division within 180 days of the alleged unlawful employment practice.

• Damages: Compensatory and punitive damages are capped based on the employer’s size (up to $300,000 for 501+ employees).

• Attorney’s Fees: Courts may award reasonable fees to prevailing parties (Tex. Lab. Code § 21.259).

2. Title VII of the Civil Rights Act of 1964

Employees have 300 days to file with the EEOC in a deferral state like Texas. After receiving a “right-to-sue” letter, they generally have 90 days to file suit in federal court.

3. Fair Labor Standards Act (FLSA) & Texas Payday Act

• FLSA: Federal minimum wage and overtime as detailed earlier.

• Texas Payday Act (Tex. Lab. Code ch. 61): Covers final paychecks and commissions. Employees must file a wage claim with TWC within 180 days after the wages became due.

4. Workers’ Compensation Retaliation (Tex. Lab. Code § 451.001)

Texas prohibits employers from discriminating against employees for filing a workers’ compensation claim or hiring a lawyer for that purpose.

5. Occupational Safety and Health Act (OSHA)

Employees have the right to a safe workplace. Whistleblower complaints must be lodged within 30 days of retaliation.

Steps to Take After Workplace Violations

1. Document Everything

• Keep copies of pay stubs, schedules, performance reviews, and any discriminatory communications.

• Maintain a timeline of incidents with dates, witnesses, and the company’s response.

2. Follow Internal Policies

Many large Dallas employers—such as AT&T, Southwest Airlines, and Texas Health Resources—require workers to report grievances to HR first. Failing to follow reasonable internal procedures might reduce damages or time to sue (see Faragher–Ellerth defense).

3. File with the Appropriate Agency

• Discrimination/Harassment: File with the TWC Civil Rights Division (within 180 days) or EEOC (within 300 days). Dual filing will generally suffice for both.

• Wage Claims: For unpaid overtime, you may file with the U.S. Department of Labor Wage and Hour Division or directly sue in court. For final paychecks or commissions under $20,000, file a Texas Payday Act claim with TWC.

• Safety Concerns: Contact OSHA’s Dallas Area Office.

4. Observe Filing Deadlines

Missing a statute of limitations can permanently bar your claim. Below is a quick reference:

• EEOC/TWC Discrimination Charge: 180/300 days

• FLSA Overtime: 2 years (3 years if willful)

• Texas Payday Claim: 180 days

• Workers’ Comp Retaliation: 2 years

• Sabine Pilot Wrongful Discharge: 2 years

5. Consider Mediation or Settlement

The TWC and EEOC both offer mediation programs. Early settlement may conserve resources and reduce risk.

When to Seek Legal Help in Texas

1. Complex or High-Value Claims

If your lost wages, emotional distress, or future earnings exceed a few thousand dollars, or if you face systemic discrimination, an experienced employment lawyer Dallas Texas can navigate procedural pitfalls and maximize recovery.

2. Class or Collective Actions

FLSA allows collective actions, enabling similarly situated employees—such as hundreds of call-center agents in Plano—to aggregate claims. Counsel is crucial for conditional certification and notice procedures.

3. Retaliation or Hostile Work Environment

Retaliation cases often hinge on timing and shifting explanations from the employer. Lawyers obtain evidence through subpoenas and depositions unavailable in agency investigations.

4. Appeals and Litigation Strategy

Texas state courts follow the Texas Rules of Civil Procedure, while federal claims proceed under the Federal Rules of Civil Procedure. Trial strategy, jury selection in Dallas County, and potential removal to the Northern District of Texas require local legal expertise.

Local Resources & Next Steps

Texas Workforce Commission – File wage claims or discrimination charges, or search for workforce centers such as the Dallas Workforce Solutions office on Stemmons Freeway. EEOC Dallas District Office – 207 S. Houston Street, Dallas, TX 75202, serving North Texas for federal discrimination complaints. OSHA Dallas Area Office – Report safety violations and retaliation. State Bar of Texas Lawyer Referral Service – Verify attorney licensing and disciplinary history.

Legal Disclaimer: This article is for informational purposes only and does not constitute legal advice. Laws can change, and individual circumstances vary. Always consult a licensed Texas employment attorney regarding your specific situation.

If you experienced workplace discrimination, wrongful termination, or wage violations, call Louis Law Group at 833-657-4812 for a free case evaluation and employment consultation.