InterObservers.

Texas employment rules for employers

Last verified Sep 24, 2026 · 12 verified rules · How we verify every rule

General information, not legal advice. 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. Every rule on this page links to its official source.

Minimum wage

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))

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

Minimum wage by state

Used in: How to hire your first employee

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))

    “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

Texas payday law: full page · Payday laws by state

Used in: How to hire your first employee

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

Texas break laws: full page · Break laws by state

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

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

dol.gov · efte.twc.texas.gov

Texas break laws: full page · Break laws by state

Final paycheck

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

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.”

“If an employee is laid off, discharged, fired, or otherwise involuntarily separated from employment, the final pay is due within six (6) calendar days of discharge.”

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

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

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

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

Texas final paycheck law: full page · Final paycheck laws by state · Final paycheck date calculator

Used in: How to fire an employee in your state · Employee no call, no show: what to do · An employee resigned: what to do next

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 sources

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

PTO payout laws by state

Used in: How to fire an employee in your state · An employee resigned: what to do next

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

Paid sick leave laws by state

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)

“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

Implied contract exception: recognized?Not verified yetCheck the official source

We have not verified this rule for Texas yet. Check the official source: efte.twc.texas.gov.

Good faith and fair dealing exception: recognized?Not verified yetCheck the official source

We have not verified this rule for Texas yet. Check the official source: efte.twc.texas.gov.

At-will employment by state

Used in: How to write up an employee (the right way, in your state) · How to put an employee on a performance improvement plan · Employee no call, no show: what to do · Insubordination: what counts, and how to handle it

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

Used in: How to write up an employee (the right way, in your state) · How to fire an employee in your state

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

“However, an employer must give a departing employee a notice of their right to file an unemployment claim (an official sample is included”

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

Used in: How to fire an employee in your state

Texas topic pages

Final pay after firing, neighbors

StateFinal pay after firing
Texas6 calendar days
New MexicoNot verified
OklahomaNext regular payday
ArkansasNot verified
LouisianaNot verified

Only verified rules are shown. "Not verified" means we have not checked that state's rule yet; open its rulebook for the official source.

What an employee costs in Texas

Beyond the salary, an employer pays these payroll taxes on each employee. Rates for 2026, from official sources:

A worked example: $40,000 salary

Estimate, before benefits and workers' comp; check with your payroll provider. It assumes a new employer, a full year of wages and the full FUTA credit.

Tax on a $40,000 salaryPer year
Social Security, 6.2% (Topic 751)$2,480
Medicare, 1.45% (Topic 751)$580
Federal unemployment (FUTA), 0.6% of the first $7,000 (Topic 759)$42
Texas unemployment insurance, new-employer rate 2.70% of the first $9,000 (DOL, July 2026)$243
Estimated total employer taxes$3,345

Estimate: $3,345 is about 8.4% on top of the salary. It leaves out health insurance, retirement contributions, workers' compensation, state disability or paid leave programs and any local taxes.

Federal wage enforcement in Texas

In FY2021 to FY2025, the U.S. Department of Labor's Wage and Hour Division concluded 8,122 cases in Texas (n = 8,122), finding $89,659,827 in back wages owed to 76,700 employees (DOL enforcement data). Enforcement data is not a violation rate: it shows where federal investigators looked, and many states handle wage claims through their own agencies. Wage violations by industry.

Changes coming in 2027

We have not found an announced 2027 change for Texas employers in official sources yet. All 2027 changes by state.

Changelog

Questions about Texas employer rules

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 (20)

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