Texas Minimum Wage & Employment Law Guide – Houston

Introduction: Houston’s Dynamic Workforce and Why Employment Rights Matter

Houston, Texas is home to nearly 2.3 million residents and supports one of the most diverse regional economies in the United States. From energy and petrochemical refineries along the Ship Channel to the Texas Medical Center’s booming health-care campuses and an expanding technology corridor, Houstonians work in virtually every major industry. Because Texas follows the at-will employment doctrine—allowing an employer to terminate an employee for almost any nondiscriminatory reason—understanding state and federal employment protections is vital for every worker. This comprehensive guide explains how Texas employment law and key federal statutes apply day-to-day, what wage and hour rules you can rely on, how to spot common violations, and, crucially, what steps to take if your workplace rights are ignored.

While this article slightly favors employees, all information is strictly factual and drawn from authoritative sources, including the Texas Labor Code, the Fair Labor Standards Act (FLSA), Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), the Texas Commission on Human Rights Act (TCHRA), and published opinions from Texas and federal courts.

Understanding Your Employment Rights in Texas

1. The At-Will Employment Rule—and Its Exceptions

Texas is an at-will state. Under the common-law rule recognized by the Supreme Court of Texas, either the employer or the employee may end employment at any time, with or without cause. However, several key exceptions override at-will firing:

• Statutory discrimination protections: Employers with 15+ workers cannot fire or discipline someone because of race, color, national origin, religion, sex (including pregnancy, sexual orientation, and gender identity), disability, or genetic information. (Title VII, ADA, TCHRA, Tex. Lab. Code §§ 21.051–21.055.)

• Retaliation for protected activity: Termination for filing a workers’ compensation claim, reporting illegal conduct (Texas Whistleblower Act for public employees; Sabine Pilot doctrine for private-sector refusal to perform criminal acts), or participating in an EEOC/Texas Workforce Commission Civil Rights Division (TWC-CRD) investigation is unlawful.

• Contractual or collective-bargaining limits: Written contracts, offer letters with fixed terms, or union agreements can require “good cause” and binding grievance procedures.

2. Minimum Wage, Overtime, and Paycheck Rules

The Texas Minimum Wage Act (Tex. Lab. Code ch. 62) adopts the federal minimum wage, currently $7.25 per hour. Unless an exemption applies, non-exempt employees must also receive overtime—**1.5 times the regular rate for hours worked over 40 in a workweek—**under both the FLSA (29 U.S.C. § 207) and Texas law. Houston’s cost of living may exceed this baseline, but employers are only required to meet the statutory floor unless a higher municipal rate is enacted (Houston has not adopted a local minimum wage as of this writing).

Additional wage-and-hour safeguards include:

• Prompt payment of wages on regular paydays (Tex. Lab. Code § 61.011).

• Final paychecks to discharged employees within six calendar days (Tex. Lab. Code § 61.014).

• Tip credit allowance of up to $5.12 per hour if employees receive at least $30 in tips monthly and employer provides proper notice (29 U.S.C. § 203(m)).

3. Discrimination & Harassment Protections

Both Title VII and the TCHRA prohibit disparate treatment and hostile-work-environment harassment. Important points for Houston workers:

• Covered employers: Private companies with 15 or more employees (20 for age discrimination under the Age Discrimination in Employment Act) and all state and local governmental entities.

• Sexual harassment reforms: In 2021, the Texas Legislature expanded liability for sexual harassment (SB 45). Aggrieved workers may bring claims against individual supervisors in certain circumstances, and employers must act immediately to stop harassment once they know—or should know—about it.

• Pay equity: While Texas lacks an equal-pay statute, Title VII and the Equal Pay Act (EPA) bar sex-based wage gaps for substantially equal work.

4. Protected Leave Rights

Although Texas does not mandate paid sick leave statewide, Houston employees may qualify for:

• Family and Medical Leave Act (FMLA): Up to 12 weeks of unpaid, job-protected leave for serious health conditions, birth/adoption, or military exigencies, if the employer has 50+ workers within 75 miles and the employee meets tenure and hours requirements.

• Military leave protections: Uniformed Services Employment and Reemployment Rights Act (USERRA) safeguards job restoration for employees who serve in active duty.

Common Employment Law Violations in Texas

1. Unpaid Overtime and Misclassification

Houston’s oil-and-gas, logistics, and tech startups frequently schedule 12-hour shifts and engage subcontractors. Employers sometimes classify field technicians or delivery drivers as “independent contractors” or “exempt” without meeting the strict duties and salary tests under 29 C.F.R. part 541. Courts—including the U.S. Court of Appeals for the Fifth Circuit—routinely scrutinize these designations; unpaid overtime judgments often exceed six figures when large blocks of hours are involved.

2. Retaliatory Termination

Because Texas is at-will, some managers believe they can fire outspoken employees with impunity. In Hernandez v. Yellow Transportation, 670 F.3d 644 (5th Cir. 2012), the Fifth Circuit upheld a jury verdict for a Houston dockworker fired after reporting harassment, illustrating that retaliation claims can succeed even in at-will contexts.

3. Discriminatory Hiring or Promotion

Embedded bias in hiring software and word-of-mouth recruitment networks may disadvantage older engineers or women seeking upstream drilling roles. Title VII disparate-impact theories allow affected applicants to challenge facially neutral practices that disproportionately exclude protected groups.

4. Hostile-Work-Environment Harassment

Oil rigs, warehouses, and busy restaurant kitchens can breed intolerable conditions when supervisors allow slurs or unwanted advances. Under both federal and Texas standards, harassment becomes unlawful if it is severe or pervasive enough to alter employment conditions. Prompt complaint reporting is essential to preserve claims.

5. Failure to Provide Reasonable Accommodation

Under the ADA and TCHRA, employers must accommodate qualified employees’ disabilities unless doing so poses an undue hardship. Common breakdowns involve denying modified work schedules to medical center nurses with autoimmune disorders or refusing ergonomic chairs requested by call-center staff.

Texas Legal Protections & Employment Laws

1. Texas Labor Code and Workforce Commission Enforcement

The Texas Workforce Commission (TWC) enforces wage claims under Chapters 61 and 62 of the Labor Code. Employees can file a wage-claim form within 180 days of the date wages were due. The agency investigates and may issue binding wage orders. Unpaid wage judgments accrue interest and can be enforced in court.

2. Anti-Discrimination Statutes

• Title VII of the Civil Rights Act of 1964 – Federal law prohibiting discrimination based on race, color, religion, sex, or national origin.

• Texas Commission on Human Rights Act (TCHRA) – Mirrors Title VII protections and adds state administrative remedies.

• Age Discrimination in Employment Act (ADEA) – Protects workers 40 and older.

• Americans with Disabilities Act (ADA) – Requires reasonable accommodation and bars disability discrimination.

3. Statutes of Limitations

Act quickly—waiting too long can forfeit your claim.

Claim TypeCharge/Complaint Deadline Title VII or ADA discrimination (EEOC/TWC-CRD)180 days from discriminatory act (extended to 300 days if cross-filed with TWC-CRD) Texas wage claim (TWC)180 days from date wages originally due FLSA unpaid wages/overtime (federal court)2 years (3 years if willful) Sabine Pilot wrongful termination for refusing to commit illegal act2 years Workers’ compensation retaliation (Texas Lab. Code § 451.001)2 years

4. Attorney Licensing and Fee Recovery

Only attorneys licensed by the State Bar of Texas may represent clients in Texas state courts. Under fee-shifting provisions in Title VII, ADA, the FLSA, and the TCHRA, prevailing employees may recover reasonable attorney’s fees, enhancing access to counsel. Contingency-fee arrangements are common, but always review any retainer carefully.

Steps to Take After Workplace Violations

1. Document Everything

Save pay stubs, schedules, emails, text messages, write-ups, and witness names. Under the National Labor Relations Act (NLRA), concerted activity for mutual aid—such as gathering wage information—generally cannot be banned by private employers.

2. Use Internal Complaint Channels

Many courts require proof that the employee gave the company an opportunity to fix discrimination before filing suit. Follow your handbook’s grievance procedure, but do so in writing and keep copies.

3. File with the EEOC or TWC-CRD

You must exhaust administrative remedies for discrimination or harassment claims. In Houston, you can visit the EEOC’s Houston District Office at 1919 Smith Street, 6th Floor, or mail a charge. Online filing is also available. Complaints automatically dual-file with the TWC-CRD when received by the EEOC.

4. Submit a Wage Claim or FLSA Lawsuit

For unpaid wages under $20,000, the TWC wage-claim process is a low-cost option. Otherwise, you may file an FLSA collective action in the U.S. District Court for the Southern District of Texas, Houston Division.

5. Consider Mediation or Arbitration

Many Houston employers include arbitration clauses. While recent federal law bans forced arbitration of sexual-assault and harassment claims, wage disputes may still be subject to private arbitration. Consult counsel before signing any agreements.

When to Seek Legal Help in Texas

A seasoned employment lawyer houston texas can analyze facts, calculate damages, and navigate complex procedural rules. Consider immediate consultation if:

• You are fired soon after complaining about pay or discrimination.

• You receive a severance offer requiring a broad release.

• You believe you are misclassified as exempt or a contractor.

• You need an ADA accommodation and HR is unresponsive.

• An EEOC mediator contacts you about settlement discussions.

Texas attorneys must follow disciplinary rules promulgated by the Texas Supreme Court. Look for lawyers who regularly practice before the Southern District of Texas and the Fifth Circuit.

Local Resources & Next Steps

Texas Workforce Commission – Your Rights at Work Texas Labor Code Chapter 62 – Minimum Wage EEOC – How to File a Charge U.S. Department of Labor – FLSA Overview

The City of Houston also operates neighborhood Career Offices that can connect displaced workers with retraining grants. For veterans, the TWC’s Texas Veterans Leadership Program in Houston provides tailored employment services and legal referral lists.

Legal Disclaimer

This article is for informational purposes only and does not constitute legal advice. Laws change frequently, and application can vary based on individual facts. Consult a licensed Texas attorney for advice specific to your 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.