Get an overview of the Texas labor laws small businesses should know when hiring, and updates on employment laws that could impact your business.
The minimum wage in Texas is $7.25 per hour, which is the same as the federal minimum wage.Â
References: Texas Minimum Wage Law
Texas follows the federal minimum exempt requirement of $684 per week or $35,568 per year for most exemptions from minimum wage and overtime.
References: Federal Minimum Exemption Threshold
Texas follows the federal requirements and doesn’t have regulations requiring employers to provide meal and rest break periods.
Texas follows federal law and doesn’t have state-specific lactation accommodations laws or regulations.
Keep up to date with important changes to state and local employment laws in Texas.
Texas has passed a new law that defines an individual’s sex strictly as male or female, based on biological sex at birth. This law applies to government data collection and does not recognize nonbinary or gender identity–based designations.
For employers, this may affect how demographic information is collected and reported for state purposes. The law also emphasizes aligning government documents with biological sex at birth and allows for separate-sex facilities such as bathrooms and locker rooms. While the law does not include penalties for violations, employers in Texas should review their recordkeeping practices and consult legal counsel to ensure compliance. Crucially, employers must be aware that this state law may conflict with federal requirements under Title VII and guidance from the Equal Employment Opportunity Commission (EEOC) regarding gender identity. Navigating these conflicting obligations requires careful legal analysis to minimize risk.
Governor Greg Abbott recently signed Senate Bill 7 (SB 7) into law, which bans private employers of any size from enforcing COVID-19 vaccine mandates as a condition of employment. Under the law, effective February 6, 2024, covered employers are prohibited from enforcing COVID-19 mandates for employees, contractors, or job applicants for employment or contract positions; or taking adverse employment actions against the aforementioned groups for refusal to be vaccinated. Employees who believe they have suffered an adverse action have the right to file a complaint with the Texas Workforce Commission. Employers who violate the law may be subject to fines unless certain conditions are met.Â
There are limited exceptions to this law for healthcare facilities and providers to establish and enforce reasonable policies such as requiring the use of personal protective equipment (PPE).Â
Employers should review their policies and procedures to ensure compliance with this update.
Texas joined over 20 other states in passing their own CROWN Act, which prohibits discrimination based on hair texture or hairstyle in decisions related to fair employment and housing and in educational settings. The CROWN Act provides protection to individuals against discrimination based on hairstyles which have been commonly associated with race. Employers should review and revise their anti-discrimination, dress code, and appearance policies to comply with this new law.
Starting on September 1, 2025, the state’s medical cannabis law will expand to allow more state residents to utilize cannabis to treat certain qualifying illnesses and medical conditions. The law also expands the amount that can be sold, and expands ways to consume cannabis for medical reasons. While the law does not explicitly outline employment protections for medical marijauna usage, employers may see an uptick in reasonable accommodation requests, or need to update existing drug testing policies.
Starting September 1, 2023, all Texas employers will be required to post a notice for employees about reporting workplace violence and suspicious activity to the Texas Department of Public Safety. The notice must be placed in clear and accessible locations in English and Spanish for both in person and remote employees. Although this requirement and other provisions of the law begin on September 1, 2023, the Texas Workforce Commission (TWC) has until March 1, 2024 to provide the required notice. Thus, legal experts contemplate that enforcement of notice requirements is unlikely until the TWC has made the notice available to employers.
Governor Abbott issued an Executive Order on October 11, 2021 prohibiting COVID-19 vaccine mandates that would compel receipt of a COVID-19 vaccine by any individual “who objects to such vaccination for any reason of personal conscience, based on a religious belief, or for medical reasons, including prior recovery from COVID-19.” Governor Abbott has also proposed legislation on the same topic.
For certain employers, including those with 100 or more employees, this may conflict with obligations under the Federal OSHA ETS regarding COVID-19 vaccine mandates. Such employers should continue to check with federal and state agencies for additional updates and confer with legal counsel to determine how this applies to their employees.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.
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