Texas Minimum Wage & Employment Law Guide – Houston, TX

Introduction: Why Houston Workers Need a Texas-Specific Employment Law Guide

Houston is the economic heartbeat of Texas, home to nearly 2.4 million residents and a diverse workforce employed in energy, healthcare, aerospace, shipping, and an ever-growing technology sector. Because most employment disputes arise locally, understanding the intersection of texas employment law and federal protections is critical for every Houston employee—from offshore oil rig hands working out of Port Houston to coders in the city’s Innovation Corridor. This guide focuses on the Texas Minimum Wage Act, overtime rules, discrimination protections, and wrongful termination defenses, with a slight—but evidence-based—lean toward protecting workers. All information is drawn from authoritative sources such as the Texas Labor Code, Fair Labor Standards Act (FLSA), Texas Commission on Human Rights Act (TCHRA), Equal Employment Opportunity Commission (EEOC) regulations, and published Texas and federal court opinions.

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1. Understanding Your Employment Rights in Texas

1.1 The Texas Minimum Wage Act

Chapter 62 of the Texas Labor Code adopts the federal minimum wage by reference. As of 2024, that rate remains $7.25 per hour. Although the Texas Legislature may raise this floor, municipalities such as Houston cannot mandate a higher general minimum wage for private employers under Tex. Labor Code § 62.151. However, federal contractors, certain city vendors, and airport concessions may be bound by higher wage ordinances through contract.

Key takeaways for Houston workers:

• Tipped employees must receive at least $2.13 per hour in direct wages, and employers must make up any shortfall if tips do not raise the total to $7.25.

• Record-keeping obligations under Tex. Labor Code § 62.102 require employers to maintain payroll records for at least two years.

• Retaliation for filing a wage complaint is prohibited by Tex. Labor Code § 62.202.

1.2 Overtime and the FLSA

Under 29 U.S.C. § 207 of the FLSA, non-exempt employees must be paid 1.5 times their regular rate for hours worked beyond 40 in a workweek. Texas follows federal exemptions for executive, administrative, professional, computer, and outside sales employees. Because Houston’s energy sector frequently classifies field engineers and drill site managers as exempt, misclassification claims are common. The Department of Labor recovered millions in back wages from Gulf Coast oilfield service companies in Acosta v. Tidewater Marine, LLC, 5th Cir. 2018, confirming that job titles alone do not create exemptions.

1.3 At-Will Employment—Texas Style

Texas recognizes the at-will doctrine: either party may terminate employment for any reason, no reason, or a wrong reason—unless the termination violates an express statute or an implied public-policy exception. Important exceptions for Houston workers include:

• Statutory exceptions: Discrimination under Title VII, TCHRA, ADA, Age Discrimination in Employment Act (ADEA), and retaliation provisions.

• Sabine Pilot exception: An employer cannot fire an employee solely for refusing to perform an illegal act (Sabine Pilot Serv., Inc. v. Hauck, 687 S.W.2d 733, Tex. 1985).

• Contract exceptions: Written employment contracts, collective bargaining agreements, or employer policies that limit termination rights.

2. Common Employment Law Violations in Texas

2.1 Wage & Hour Violations

Houston’s restaurants, construction sites, and home-health agencies frequently face allegations of off-the-clock work and unpaid overtime. The U.S. Department of Labor’s Wage and Hour Division (WHD) cites Texas annually among the top five states for FLSA recoveries.

Warning signs of wage violations:

• Automatic meal-break deductions despite working through lunch.

• Misclassifying employees as independent contractors to avoid overtime.

• “Day rate” systems without overtime premiums for oilfield roustabouts and truck drivers.

2.2 Discrimination & Harassment

Title VII (42 U.S.C. § 2000e) and the Texas Commission on Human Rights Act (Tex. Labor Code § 21.051) prohibit employment decisions based on race, color, religion, sex (including pregnancy, sexual orientation, and gender identity per Bostock v. Clayton Cty., 140 S. Ct. 1731 (2020)), national origin, age (40+), disability, and genetic information.

Practical Houston examples:

• Age-based layoffs in energy downturns may trigger ADEA claims.

• National-origin harassment of port workers who speak Spanish or Vietnamese.

• Pregnancy discrimination in hospital systems denying light duty.

2.3 Retaliation & Whistleblowing

Retaliation is the most frequently filed charge with the EEOC. Texas workers also have sector-specific protections:

• Texas Whistleblower Act protects public employees who report law violations.

• Oil & gas safety complaints may be shielded under the Occupational Safety and Health Act (OSHA).

• Health-care employees reporting Medicare fraud may sue under the False Claims Act.

2.4 Wrongful Termination

Because “wrongful termination” is an umbrella term, Houston employees should look for statutes violated by their discharge, such as FMLA interference or refusal to commit illegal dumping of hazardous waste along the Ship Channel.

3. Texas Legal Protections & Employment Laws

3.1 Texas Labor Code & Wage Claims

Statute of Limitations: Texans must file a wage claim with the Texas Workforce Commission (TWC) within 180 days of the underpayment (Tex. Labor Code § 61.051). FLSA lawsuits generally have a two-year window, extended to three years for willful violations (29 U.S.C. § 255).

3.2 Discrimination Claims under TCHRA

Victims must file a charge with the TWC Civil Rights Division or dual-file with the EEOC within 300 days of the adverse act (Tex. Labor Code § 21.202). After the agency issues a “right-to-sue” letter, plaintiffs have 60 days under Texas law (or 90 under federal) to file in court.

3.3 Family & Medical Leave Act (FMLA)

Eligible employees in Houston with 50+ coworkers in a 75-mile radius may take up to 12 weeks of unpaid leave. Claims must be filed within two years (three for willful violations) in federal court.

3.4 Americans with Disabilities Act (ADA) & Texas Labor Code § 21.128

Both require reasonable accommodations unless they pose undue hardship. Houston’s hospital systems and petrochemical facilities often litigate over modified schedules and respirator-fit requirements.

3.5 Immigration-Related Protections

Regardless of status, workers are entitled to minimum wage and overtime. Retaliation for cooperating with wage investigations can result in penalties under 8 U.S.C. § 1324b.

3.6 Attorney Licensing & Ethics in Texas

Only lawyers licensed by the State Bar of Texas may provide legal advice or represent workers in court. Labor and employment law is a recognized specialty area under the Texas Board of Legal Specialization (TBLS). Contingency fees must comply with Texas Disciplinary Rule 1.04.

4. Steps to Take After Workplace Violations

4.1 Document Everything

Keep pay stubs, time sheets, disciplinary write-ups, emails, and witness names. Under Tex. Labor Code § 52.031, employees have a right to request certain personnel records.

4.2 Internal Complaint Procedures

Follow your employer’s written policies if safe to do so. Exhausting internal remedies strengthens retaliation claims if the employer fails to act.

4.3 File with the Appropriate Agency

• Wage claims: Texas Workforce Commission Wage & Hour Department

• Discrimination: TWC Civil Rights Division or EEOC Houston District Office (1919 Smith St., 7th Floor)

• OSHA complaints: Houston North (2990 East Loop) or Houston South (17625 El Camino Real)

4.4 Consider Mediation

Both EEOC and TWC offer free mediation programs that can resolve disputes quickly. If settlement fails, litigation remains an option.

4.5 Calculate Damages

Potential recovery may include:

• Back pay and front pay

• Liquidated damages (double wage recovery under FLSA for willful violations)

• Compensatory and punitive damages for intentional discrimination (capped by employer size under 42 U.S.C. § 1981a & Tex. Labor Code § 21.2585)

• Attorney’s fees and court costs

5. When to Seek Legal Help in Texas

If you are unsure about deadlines, damages, or the strength of your claim, consult an employment lawyer houston texas. Complexities such as arbitration clauses, collective actions, or ERISA preemption justify professional assistance. A lawyer can also file a Temporary Restraining Order (TRO) in Harris County District Court to halt ongoing retaliation.

Red flags demanding immediate counsel:

• Imminent termination while out on FMLA leave

• Employer threatens immigration consequences for wage complaints

• You signed a severance agreement with a release of claims

6. Local Resources & Next Steps

6.1 Government Agencies

Texas Workforce Commission – Wage claims, unemployment benefits, workforce solutions U.S. Equal Employment Opportunity Commission – Discrimination charges Texas Minimum Wage Act (Chapter 62) FLSA Compliance Resources

6.2 Non-Profit Assistance

• Equal Justice Center – Wage theft litigation for low-wage workers

• Lone Star Legal Aid – Free legal help for qualifying residents

• Houston Interfaith Worker Justice Center – Know-your-rights trainings

6.3 Statute of Limitations Quick Reference

• Texas TWC wage claim: 180 days

• FLSA lawsuit: 2 years (3 for willful)

• EEOC/TWC charge: 300 days

• Workers’ compensation retaliation: 2 years (Tex. Labor Code § 451.003)

• Sabine Pilot wrongful discharge: 2 years (Tex. Civ. Prac. & Rem. Code § 16.003)

Legal Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Laws change frequently, and the application of law depends on specific facts. You should consult a licensed Texas attorney regarding your individual 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.