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
Put it in writing with the termination letter template for Texas.
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.”
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.”
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”
“federal minimum wage is $7.25 per hour (it is the same level under Texas state law)”
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.”
“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).”
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
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”
“neither the FLSA nor Texas law requires employers to give breaks during the workday”
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.”
Same official text as quoted above (see the quote; Texas Workforce Commission, Texas Guidebook for Employers (Breaks) · efte.twc.texas.gov).
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.”
“As stated above, no law in Texas requires employers to provide paid vacation or sick leave.”
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: Recognized, limited (Texas Workforce Commission, Texas Guidebook for Employers (2024), Outline of Employment Law Issues)
- Implied contract: pending verification (official source)
- Good faith and fair dealing: pending verification (official source)
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.”
“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.”
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).”
“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”
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”
Same official text as quoted above (see the quote; Texas Workforce Commission, Texas Guidebook for Employers (2024) · efte.twc.texas.gov).
Pending verification. Not verified for Texas yet, so no answer is shown. Each link opens the official source to check.
Texas and its neighbors
| State | Final pay after firing | Final pay after quitting | Minimum wage | Paid sick leave |
|---|---|---|---|---|
| Texas | 6 calendar days | Next regular payday | $7.25 per hour | No statewide law |
| New Mexico | Pending verification. Official source (govinfo.gov). | Pending verification. Official source (govinfo.gov). | $12.00 per hour | Yes, statewide |
| Oklahoma | Next regular payday | Next regular payday | $7.25 per hour | Pending verification. Official source (oklahoma.gov). |
| Arkansas | Next regular payday | Pending verification. Official source (arkleg.state.ar.us). | $11.00 per hour | Pending verification. Official source (labor.arkansas.gov). |
| Louisiana | Pending 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, 2026 | Amount |
|---|---|
| Taxable wage base per employee | $9,000 |
| Rates for experience-rated employers | 0.00% to 6.00% |
| New-employer rate | 2.70% |
| FUTA credit reduction | None 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
| Industry | WHD cases | Back wages | Violation cases with minimum-wage back wages | Most-cited safety standard |
|---|---|---|---|---|
| Restaurants and food service | 2,098 | $17,640,422 | 22.2% | Reporting deaths, hospitalizations and amputations to OSHA (29 CFR 1904.39) |
| Retail | 571 | $2,385,417 | 11.9% | Forklifts and other powered industrial trucks (29 CFR 1910.178) |
| Construction | 1,294 | $14,990,625 | 5.1% | Fall protection: when it is required (29 CFR 1926.501) |
| Health care (incl. home care) | 787 | $16,678,916 | 15.1% | Respirators and fit testing (29 CFR 1910.134) |
| Home health and home care (subset of health care) | 230 | $7,494,532 | 17.5% | Respirators and fit testing (29 CFR 1910.134) |
| Child care | 299 | $549,755 | 13.8% | 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)
- Texas minimum wage law (U.S. DOL WHD state minimum wage table)
- Texas Workforce Commission, Texas Guidebook for Employers
- Texas Payday Law (U.S. DOL WHD state payday table, footnote 21)
- Texas Payday Law, Tex. Labor Code section 61.011 (Texas Workforce Commission, Texas Guidebook for Employers)
- U.S. DOL WHD table of state meal period requirements (Texas not listed)
- Texas Workforce Commission, Texas Guidebook for Employers (Breaks)
- U.S. DOL WHD table of state paid rest period requirements (footnote 1; Texas not listed)
- Texas Labor Code § 61.014(a)
- Texas Workforce Commission, Texas Guidebook for Employers: Final Pay
- Texas Workforce Commission, Accrued Leave Payouts
- Texas Workforce Commission, Especially for Texas Employers: Vacation and Sick Leave
- Texas Workforce Commission, Texas Guidebook for Employers (2024)
- Garcia v. Sunbelt (5th Cir., No. 02-50542), discussing Sabine Pilot Service, Inc. v. Hauck, 687 S.W.2d 733 (Tex. 1985)
- Texas Workforce Commission, Exit Interviews / Notice of Discharge
- U.S. Department of Labor: State labor offices
Checked Sep 24, 2026 · How we verify every rule · Report an error
General information, not legal advice. Not a substitute for the advice of an attorney. This page is for general information only and isn’t legal, financial or tax advice. Laws vary by state and change; check the official source or talk to a qualified professional about your situation. Report an error