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”
“federal minimum wage is $7.25 per hour (it is the same level under Texas state law)”
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.”
“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))
“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
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”
“neither the FLSA nor Texas law requires employers to give breaks during the workday”
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.”
“neither the FLSA nor Texas law requires employers to give breaks during the workday”
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.”
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 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.”
Used in: How to fire an employee in your state · An employee resigned: what to do next
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.”
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: not verified yet (check the official source)
- Good faith and fair dealing: not verified yet (check the 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)
“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.”
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.
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).”
“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”
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”
“However, an employer must give a departing employee a notice of their right to file an unemployment claim (an official sample is included”
Used in: How to fire an employee in your state
Texas topic pages
Final pay after firing, neighbors
| State | Final pay after firing |
|---|---|
| Texas | 6 calendar days |
| New Mexico | Not verified |
| Oklahoma | Next regular payday |
| Arkansas | Not verified |
| Louisiana | Not 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:
- Social Security: 6.2% of wages, up to $184,500 per employee in 2026 (Publication 15).
- Medicare: 1.45% of all wages, with no wage base limit (Topic 751).
- Federal unemployment (FUTA): 6.0% of the first $7,000 of each employee's wages, with a credit of up to 5.4% for state unemployment taxes paid, so usually 0.6% (Topic 759).
- FUTA credit reduction: Texas is not on the DOL list for 2025 (final) or 2026 (potential), so the full 5.4% credit is available if state unemployment taxes are paid in full and on time (U.S. DOL, FUTA credit reductions; Topic 759).
- Texas unemployment insurance: taxes apply to the first $9,000 of each employee's wages. Rates for experience-rated employers run from 0.00% to 6.00%; the new-employer base rate is 2.70%. Source: U.S. DOL, Significant Provisions of State UI Laws, effective July 2026, page 5. The DOL notes that higher rates may apply by industry and that the table "is not an official interpretation of state UI laws". Find the Texas unemployment agency.
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 salary | Per 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
- Sep 24, 2026: first verified, 12 rules.
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)
- 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
- IRS Publication 15 (2026), Circular E, Employer's Tax Guide
- IRS Topic no. 751, Social Security and Medicare withholding rates
- IRS Topic no. 759, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
- U.S. DOL, Employment and Training Administration: FUTA credit reductions
- U.S. DOL, Office of Unemployment Insurance: Significant Provisions of State Unemployment Insurance Laws, effective July 2026
- U.S. Department of Labor: State labor offices
Checked Sep 24, 2026 · How we verify every rule · Report an error