InterObservers.

Texas Employment Laws for Employers

Reviewed Sep 24, 2026 11 of 13 rules verified against official sources How we verify

Not a substitute for the advice of an attorney. General information; laws vary by state. Terms of use

Final pay and unused vacation

Final paycheck

If you fire someone, when is the last paycheck due?6 calendar daysVerified Sep 24, 2026 · 2 official pages from the same agency

An employee who is discharged must be paid in full not later than the sixth calendar day after discharge. (Texas Labor Code § 61.014(a))

“Sec. 61.014. PAYMENT AFTER TERMINATION OF EMPLOYMENT. (a) An employer shall pay in full an employee who is discharged from employment not later than the sixth day after the date the employee is discharged.”

tcss.legis.texas.gov · efte.twc.texas.gov

Report an error

If an employee quits, when is the last paycheck due?Next regular paydayVerified Sep 24, 2026 · 2 official pages from the same agency

An employee who leaves employment other than by discharge (quits, resigns, retires) must be paid in full not later than the next regularly scheduled payday. (Texas Labor Code § 61.014(b))

“(b) An employer shall pay in full an employee who leaves employment other than by discharge not later than the next regularly scheduled payday.”

“If the employee quits, retires, resigns, or otherwise leaves employment voluntarily, the final pay is due on the next regularly-scheduled payday following the effective date of resignation.”

Texas Workforce Commission, Texas Guidebook for Employers: Final Pay · efte.twc.texas.gov

tcss.legis.texas.gov · efte.twc.texas.gov

Report an error

Unused vacation (PTO) at separation

Do you have to pay out unused vacation when someone leaves?Depends on your policyVerified Sep 24, 2026 · 2 official pages from the same agency

Texas requires a payout of accrued leave only if the employer promised it in a written policy or agreement, and the payout is controlled by the wording of that policy. Vacation pay owed under a written agreement or written policy counts as wages under the Texas Payday Law. With no such policy, no payout is owed. (Texas Workforce Commission, Accrued Leave Payouts)

“Payouts of accrued leave are required under the Texas Payday Law only if such a payment is promised by the employer in a written policy or agreement. The payout would be controlled by the wording of the policy or agreement. If no such policy exists, the company would not owe such a payment.”

“(B) vacation pay, holiday pay, sick leave pay, parental leave pay, or severance pay owed to an employee under a written agreement with the employer or under a written policy of the employer.”

efte.twc.texas.gov · tcss.legis.texas.gov

Report an error

Wages, paydays and breaks

Minimum wage

What is the minimum wage?$7.25 per hourVerified Sep 24, 2026 · 2 official sources

Texas minimum wage is $7.25 per hour; the state adopts the federal minimum wage rate by reference. (Texas minimum wage law (U.S. DOL WHD state minimum wage table))

“Texas Basic Minimum Rate (per hour): $7.25”

Texas minimum wage law (U.S. DOL WHD state minimum wage table) · dol.gov

“federal minimum wage is $7.25 per hour (it is the same level under Texas state law)”

dol.gov · efte.twc.texas.gov

Report an error

Paydays

How often do you have to pay?Depends on the caseVerified Sep 24, 2026 · 2 official sources
  • Exempt employees: Employees exempt from FLSA overtime must be paid at least once a month. (Texas Payday Law (U.S. DOL WHD state payday table, footnote 21))

    “21 Texas. Each employee who is exempt from the overtime provisions of the federal Fair Labor Standards Act (FLSA) must be paid at least once a month; others must be paid at least twice a month.”

    Texas Payday Law (U.S. DOL WHD state payday table, footnote 21) · dol.gov

    “the TPL requires employers to pay non-exempt employees at least twice per month on regularly scheduled paydays, and exempt employees at least once per month (section 61.011).”

    Texas Payday Law, Tex. Labor Code section 61.011 (Texas Workforce Commission, Texas Guidebook for Employers) · efte.twc.texas.gov

    dol.gov · efte.twc.texas.gov · verified Sep 24, 2026 · 2 official sources

  • Non exempt employees: Employees who are not exempt from FLSA overtime must be paid at least twice a month on regularly scheduled paydays. (Texas Payday Law (U.S. DOL WHD state payday table, footnote 21))

    Same official text as quoted above (see the quote; Texas Payday Law (U.S. DOL WHD state payday table, footnote 21) · dol.gov).

    Same official text as quoted above (see the quote; Texas Payday Law, Tex. Labor Code section 61.011 (Texas Workforce Commission, Texas Guidebook for Employers) · efte.twc.texas.gov).

    dol.gov · efte.twc.texas.gov · verified Sep 24, 2026 · 2 official sources

Report an error

Meal breaks

Do adult employees get a meal break?No state ruleVerified Sep 24, 2026 · 2 official sources

No state meal break requirement for adult employees in private employment. (U.S. DOL WHD table of state meal period requirements (Texas not listed))

“Table of Meal Period Requirements Under State Law For Adult Employees in Private Sector”

U.S. DOL WHD table of state meal period requirements (Texas not listed) · dol.gov

“neither the FLSA nor Texas law requires employers to give breaks during the workday”

dol.gov · efte.twc.texas.gov

Report an error

Rest breaks

Do adult employees get paid rest breaks?No state ruleVerified Sep 24, 2026 · 2 official sources

No state paid rest break requirement for adult employees in private employment. (U.S. DOL WHD table of state paid rest period requirements (footnote 1; Texas not listed))

“1 States not listed do not require paid rest periods.”

U.S. DOL WHD table of state paid rest period requirements (footnote 1; Texas not listed) · dol.gov

Same official text as quoted above (see the quote; Texas Workforce Commission, Texas Guidebook for Employers (Breaks) · efte.twc.texas.gov).

dol.gov · efte.twc.texas.gov

Report an error

Paid sick leave

Do you have to give paid sick leave?No statewide lawVerified Sep 24, 2026 · 2 official pages from the same agency

No Texas law requires private-sector employers to provide paid sick leave; if sick leave is promised in a written policy or agreement it is enforceable as wages under the Texas Payday Law. (Texas Workforce Commission, Especially for Texas Employers: Vacation and Sick Leave)

“No current Texas or federal law requires private-sector employers to provide paid or unpaid leave of any kind, although some amount of unpaid leave may be necessary as a reasonable accommodation in the event of a disability, pregnancy, or other condition protected under a specific statute.”

Texas Workforce Commission, Especially for Texas Employers: Vacation and Sick Leave · efte.twc.texas.gov

“As stated above, no law in Texas requires employers to provide paid vacation or sick leave.”

efte.twc.texas.gov · efte.twc.texas.gov

Report an error

Ending employment

At-will employment

Yes. Texas follows at-will employment, with these exceptions (Texas Workforce Commission, Texas Guidebook for Employers (2024), Outline of Employment Law Issues):

Public policy exception: recognized?Recognized, limitedVerified Sep 24, 2026 · 2 official sources

Texas recognizes only a very narrow public-policy exception (Sabine Pilot Service, Inc. v. Hauck): an employer may not fire an employee for refusing to perform an illegal act. (Texas Workforce Commission, Texas Guidebook for Employers (2024), Outline of Employment Law Issues; Garcia v. Sunbelt (5th Cir., No. 02-50542), discussing Sabine Pilot Service, Inc. v. Hauck, 687 S.W.2d 733 (Tex. 1985))

“Exceptions: other than statutes and express agreements, the only significant exception to employment at will is the “public policy” exception, i.e., no termination or adverse job action against an employee in retaliation for the employee having refused to commit a criminal act on the employer’s behalf.”

Texas Workforce Commission, Texas Guidebook for Employers (2024), Outline of Employment Law Issues · efte.twc.texas.gov

“Sabine Pilot Service, Inc. v. Hauck, in which the Texas Supreme Court allowed an employee to assert wrongful discharge for refusal to perform an illegal act, thereby creating a “very narrow exception” to the general doctrine that employees-at-will can be discharged at any time for any reason.”

Garcia v. Sunbelt (5th Cir., No. 02-50542), discussing Sabine Pilot Service, Inc. v. Hauck, 687 S.W.2d 733 (Tex. 1985) · ca5.uscourts.gov

efte.twc.texas.gov · ca5.uscourts.gov

Report an error

Service letter (reason for termination)

Do you have to give a written reason for the termination on request?No state requirementVerified Sep 24, 2026 · 2 official pages from the same agency

Texas employers do not have to give a departing employee a termination or service letter or an explanation of the reasons for discharge, based on a 1914 Texas Supreme Court ruling that struck down the old service letter statute. (Texas Workforce Commission, Texas Guidebook for Employers (2024), Exit Interviews / Notice of Discharge)

“• In Texas, an employer does not have to give a departing employee a termination notice or letter, or a letter of recommendation, based on a 1914 Texas Supreme Court ruling in the case of St. Louis Southwestern Railway Co. of Texas v. Griffin, 171 S.W. 703 (Tex.1914).”

Texas Workforce Commission, Texas Guidebook for Employers (2024), Exit Interviews / Notice of Discharge · efte.twc.texas.gov

“Most states, including Texas, do not require an employer to give an explanation of the reason or reasons for discharge, and an employee is not required to give an explanation for a resignation”

efte.twc.texas.gov · efte.twc.texas.gov

Report an error

Separation notice

Do you have to give a separation notice when someone leaves?YesVerified Sep 24, 2026 · 2 official pages from the same agency

Texas does not require a general separation notice or 'pink slip', but an employer must give a departing employee a notice of their right to file an unemployment claim; an official sample is included in the required TWC poster for unemployment insurance and the Texas Payday Law. (Texas Workforce Commission, Texas Business Today: Exit Interviews - Notice of Discharge)

“However, an employer must give a departing employee a notice of their right to file an unemployment claim (an official sample is included at the bottom of the required TWC poster for unemployment insurance and the Texas Payday Law”

Texas Workforce Commission, Texas Business Today: Exit Interviews - Notice of Discharge · efte.twc.texas.gov

Same official text as quoted above (see the quote; Texas Workforce Commission, Texas Guidebook for Employers (2024) · efte.twc.texas.gov).

efte.twc.texas.gov · efte.twc.texas.gov

Report an error

Pending verification. Not verified for Texas yet, so no answer is shown. Each link opens the official source to check.

Texas and its neighbors

StateFinal pay after firingFinal pay after quittingMinimum wagePaid sick leave
Texas6 calendar daysNext regular payday$7.25 per hourNo statewide law
New MexicoPending verification. Official source (govinfo.gov).Pending verification. Official source (govinfo.gov).$12.00 per hourYes, statewide
OklahomaNext regular paydayNext regular payday$7.25 per hourPending verification. Official source (oklahoma.gov).
ArkansasNext regular paydayPending verification. Official source (arkleg.state.ar.us).$11.00 per hourPending verification. Official source (labor.arkansas.gov).
LouisianaPending verification. Official source (legis.la.gov).Pending verification. Official source (legis.la.gov).Pending verification. Official source (dol.gov).Pending verification. Official source (legis.la.gov).

Verified rules only; open a state for its sources.

What an employee costs in Texas

Every employer pays Social Security 6.2% (Publication 15), Medicare 1.45% (Topic 751) and FUTA (Topic 759). Texas adds its unemployment insurance tax:

Texas payroll tax, 2026Amount
Taxable wage base per employee$9,000
Rates for experience-rated employers0.00% to 6.00%
New-employer rate2.70%
FUTA credit reductionNone for 2025 or 2026
Estimated employer taxes on a $40,000 salary$3,345 (8.4%)

Of the $3,345, $243 is Texas unemployment insurance tax (2.70% on the first $9,000 of wages) and $3,102 is federal tax.

The estimate counts FUTA at 0.6% of the first $7,000 ($42 per employee), which assumes the full FUTA credit (Topic 759).

Estimate for a new employer and a full year; check with your payroll provider. Sources: U.S. DOL, State UI Laws, July 2026, page 5; U.S. DOL, FUTA credit reductions.

Federal wage enforcement in Texas

In FY2021 to FY2025, the federal Wage and Hour Division concluded 8,122 cases in Texas (n = 8,122), 6,426 with violations, finding $89,659,827 in back wages owed to 76,700 employees and assessing $4,455,801 in civil money penalties (DOL enforcement data). Overtime back wages were part of 43.4% of the violation cases. OSHA opened 20,926 inspections in the same years (OSHA data). Enforcement data is not a violation rate: it shows where federal investigators looked. Wage violations by industry.

Texas has no OSHA-approved State Plan for private workplaces, so federal OSHA enforces workplace safety for private employers in Texas (OSHA: State Plans).

By industry in Texas

IndustryWHD casesBack wagesViolation cases with minimum-wage back wagesMost-cited safety standard
Restaurants and food service2,098$17,640,42222.2%Reporting deaths, hospitalizations and amputations to OSHA (29 CFR 1904.39)
Retail571$2,385,41711.9%Forklifts and other powered industrial trucks (29 CFR 1910.178)
Construction1,294$14,990,6255.1%Fall protection: when it is required (29 CFR 1926.501)
Health care (incl. home care)787$16,678,91615.1%Respirators and fit testing (29 CFR 1910.134)
Home health and home care (subset of health care)230$7,494,53217.5%Respirators and fit testing (29 CFR 1910.134)
Child care299$549,75513.8%n/a

Federal fiscal years 2021 to 2025; WHD enforcement data. Industries overlap (home health is part of health care). Texas detail and method.

Changelog

  • Sep 24, 2026: first verified, 12 rules.

Questions about Texas employment laws

What is the minimum wage in Texas?

Texas minimum wage is $7.25 per hour; the state adopts the federal minimum wage rate by reference. (Texas minimum wage law (U.S. DOL WHD state minimum wage table))

Is Texas an at-will state?

Yes. Texas follows at-will employment, with exceptions. Of the 3 common exceptions, we have verified 1, and 1 is recognized in Texas (Texas Workforce Commission, Texas Guidebook for Employers (2024), Outline of Employment Law Issues).

When is the final paycheck due after firing someone in Texas?

An employee who is discharged must be paid in full not later than the sixth calendar day after discharge. (Texas Labor Code § 61.014(a))

Sources (15)

Checked Sep 24, 2026 · How we verify every rule · Report an error