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A productive workforce is the backbone of any economy and should be protected to ensure equity, fair compensation, safety, and well-being.
Like all U.S. states, Texas has various employment laws to protect employers and employees. In this article, we’ll delve into Texas’ employee rights laws to help you better understand what to do in a range of common workplace situations to remain compliant in the Lone Star State.
Keeping updated with these laws as an employee can protect against exploitation and ensure you get the most out of employment opportunities. Employers can also benefit by keeping employees motivated and avoiding litigation.
Let’s take a closer look at Texas’ employee rights laws now…
Historical Context of Employee Rights in Texas
The Evolution of Employee Rights in Texas
Texas has a long, proud history of protecting its workforce. However, things didn’t start that way.
The first labor laws in Texas were enacted in 1913. This early legislation prioritized employer interests over employee benefits, stipulating that employers had the right to choose whether or not to offer compensation benefits to their employees.
About four years later, in 1917, the Texas Supreme Court revised the law, setting the framework for employment laws that would remain in force until the late 1980s.
The 1917 revisions, despite some progress, still allowed employers to choose whether or not to participate in Texas’ employment program, and it’s still in effect today, making Texas the only state in the U.S. that allows employers to choose whether or not to provide employee compensation.
That said, the law does not apply to government employees. Anybody working in a government building or contracting with the government is entitled to workers’ compensation.
Key Legislation and Court Cases Shaping the Current Employment Landscape in Texas
The Texas Workers' Compensation Act
The mid-’80s saw a surge in insurance costs, further aggravated by low benefits for injured employees. This prompted the Texas Legislature to appoint a joint selection committee to recommend worker compensation insurance changes.
Upon reviewing Texas’ employee compensation and comparing it to other states in the country, the Joint Selection Committee concluded Texas had higher than average work-related injuries and fatalities.
The committee also found payment durations were lower than those of other states, especially for injured workers, and that medical and lost time claims involving attorneys were on the rise, even when claims went undisputed.
The Texas Legislature enacted the Texas Compensation Act on December 13, 1989, to address these issues. The Act ensures injured workers are adequately compensated for workplace injuries. However, it doesn’t necessarily require private employers to maintain workers’ compensation insurance.
The Act also created the Texas Workers’ Compensation Commission (TWCC), which administered Texas’ workers’ compensation system until 2005, when the Texas Department of Insurance took over.
The 1989 act provided several benefits, including:
- The establishment of a new benefits system
- Increased benefit levels
- Established deadlines for carriers and employers to provide employee benefits
- An established benefit resolution process
- The development of treatment guidelines and medical fees to control costs of treatment and regulate attorney fees – attorneys are only entitled to a maximum of 25% of an injured employee's total benefits.
Major Reforms in 2005
Despite 1989’s reforms, Texas’ compensation system still compared poorly to other states, particularly regarding its efficiency. Medical costs continued rising, and injured workers stayed off the job for extended periods.
In 2004, the Texas Legislature commissioned two committees to study the state’s compensation system. The committees included the Senate Select Interim Committee on Workers’ Compensation and the House Business and Industry Committee.
The former assessed the benefits of Texas’ regional care networks for treating injured workers. The committee also reviewed several measures regulating injured workers’ medical costs.
The committee concluded the state should develop treatment guidelines to direct the types of treatment given to injured workers, and that healthcare networks should be incorporated into the workers’ compensation system.
Conversely, the House Business and Industry Committee focused on studying the benefits and implications of workers’ compensation.
In 2004, the Texas Sunset Advisory Commission reviewed the TWCC and proposed abolishing it. It also proposed creating an Office of Injured Employee Counsel (OIEC) and adding healthcare networks for injured workers. The commission made numerous other recommendations, including measures to control medical costs.
As a result, Texas enacted House Bill 7 in 2005.
The bill aimed to implement changes in the delivery of services to injured employees and make major reforms in the administration of the workers’ compensation system.
H.B. 7 also established the Office of Injured Employee Counsel (OIEC), which would be administered by a governor-appointed public counsel.
Understanding Basic Employment Rights in Texas
Employment rights differ across states. Despite the existence of federal guidelines, states reserve the right to enact laws that best suit their workforces.
Here are some notable employment rights and guidelines in Texas today, including wages, safety standards, and anti-discrimination laws.
Wages and Hours
Both public and private employers must comply with state and federal laws to safeguard employees’ rights. To this effect, The TWC (Texas Workforce Commission) was created to supervise the hours and wages program in the state.
According to the FLSA (Fair Labor Standards Act), Texas employees are entitled to the stipulated federal minimum wage of $7.25, with a few exceptions.
For instance, tipped workers have a significantly lower minimum wage of $2.13 per hour. However, the employer must pay additional funds if an employee gets less than $7.25 in tipped hourly wages, including tips.
Additionally, employees aged 20 and younger may receive a minimum wage of $4.25 in their first three months (90 days) of employment. However, their salaries can increase to $7.25 when they turn 20, even if they’ve worked for less than 90 days.
Overtime Pay
There are no specific overtime pay laws in Texas.
Instead, the state follows FLSA guidelines. These guidelines stipulate all non-exempt employees working more than 40 hours a week should receive additional compensation amounting to 1.5 times their regular pay for all extra hours worked.
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Breaks and Rest Periods
Texas law does not provide mandatory meals and rest breaks. However, in 2010, the city of Austin passed an ordinance requiring employers to allow 10-minute breaks for construction workers for every hour of work. Employers must also put up a sign explaining rest break requirements in Spanish and English.
Texas employers must also provide accommodations for employers expressing breast milk. These accommodations may include providing a private space for them to pump and allowing reasonable break time.
Health and Safety Standards in the Workplace
Like all U.S. states, Texas employers must provide a safe working environment for their employees. This includes providing safety equipment, implementing company-wide safety policies, and instructing employees on safety plans.
Texas employers must also follow regulations set forth by the Texas Hazard Communication Act, which mandates employers to provide their employees with adequate training and information on any hazardous materials they may encounter at work.
Anti-Discrimination Laws: Protected Classes and Legal Recourse
Texas doesn’t have many state-specific laws against harassment and discrimination. Instead, the state follows several federal laws, including the National Labor Relations Act (NLRA), the Age Discrimination in Employment Act, and the Americans with Disabilities Act.
Additionally, the Texas Labor Code protects against harassment and discrimination in the workplace based on several factors, including:
- Disability
- Race
- Color
- Nation of origin
- Religion
- Age
- Sex (including sexual orientation, gender identity, and pregnancy)
- Genetic information
Texas also enacted the CROWN Act, which prohibits labor unions, employment agencies, and employers from implementing any grooming policies or dress codes that discriminate against specific hairstyles or textures associated with a particular race.
The Texas Whistleblower Act also protects employees who report violations, including discrimination, harassment, and code violations, to appropriate law enforcement authorities.
Texas-Specific Labor Laws and Regulations
Despite the state’s leniency in enacting state-specific labor laws, a few laws are not directly stipulated under federal guidelines. These laws include:
- THE SUNDAY WORK LAW: Texas law prohibits employers from requiring employees to work on Sunday. However, there are a few exceptions for essential service workers, such as those working in hospitals and public utilities.
- THE EQUAL PAY ACT: Texas law requires that all employees receive equal wages for similar workplace duties and positions, regardless of sex.
- VOTING LEAVE: All Texas employees are entitled to at least two hours of unpaid leave on election day. As such, it is illegal for any employer to retaliate against an employee for taking some time off to vote.
Unlike most states, Texas does not have provisions for Paid Time Off (PTO) and severance pay. However, some employers may offer these benefits as perks or as part of their employment contracts.
Specific Protections for Workers in Different Industries in Texas
Texas workers’ protection laws go beyond the general rules mentioned above. They also apply to various industries where employees face unique challenges.
Here are some notable protections for workers in different industries in Texas:
Construction
The construction industry in Texas has a pretty alarming injury and fatality rate. According to a report by the Bureau of Labor Statistics, there were 10.7 fatalities for every 100,000 construction workers in the state. This is significantly higher than the average national rate of 8.8 deaths per 100,000 workers.
To curb high fatality rates and mitigate workplace dangers, the Texas Legislature enacted several laws, including the Texas Construction Safety Act, which requires employers to provide a safe working environment for employees and also requires employers to provide safety equipment, such as trenching, fall protection, and scaffolding.
The Texas Compensation Act also provides compensation to employees injured or killed on the job.
Oil and Gas
Working in the oil and gas industry is dangerous – besides the obvious fire hazard posed by flammable materials, there’s also the danger of falling or getting injured by heavy machinery.
The Texas Oil and Gas Safety Act provides several protections for employees working in the field. These include strict regulations on employers and requirements for safety equipment to protect workers from hazards like explosions, fires, and exposure to dangerous chemicals.
Texas law also protects employees working in healthcare, transportation, and agriculture. For instance, the Texas Healthcare Occupations Licensing Act protects healthcare workers from exposure to workplace hazards, such as infectious diseases and bloodborne pathogens.
Similarly, the Texas Agricultural Labor Relations Act protects workers’ rights to collective bargaining, and the Texas Motor Carrier Safety Act protects workers in the transportation industry from fatigue and unsafe working conditions.
What to Do If Your Rights Are Violated
Texas employee rights include a myriad of provisions to protect workers from harassment, discrimination, and workplace safety hazards.
However, certain situations, such as disagreements, hostility, or employer disputes, may violate these rights and provisions. In such cases, it is advisable to report these violations to relevant regulatory bodies or seek legal recourse.
The steps taken in response to these violations typically depend on the nature of the violation. For instance, informal negotiations with employers can settle minor violations like wage disputes. If that doesn’t work, you can take the matter to court or report it to the Texas Workforce Commission.
You can also consider filing a Charge of Discrimination with the Equal Employment Opportunity Commission (EEOC).
Depending on the nature of the violation, the EEOC may investigate your claim, negotiate with your employer, or take legal action against them. However, any violations filed with the EEOC should be reported within 180 days, lest they be forfeited.
Preventative Measures for Employers
Texas labor laws also protect employers’ interests. However, employers must comply with these regulations and provide a safe, inclusive working environment.
Here are some notable measures employers may take to stay compliant and provide safe working environments.
How Texas Employers Can Ensure Compliance With State Laws
Navigating employee rights in Texas and the labor laws accompanying them can be challenging. However, employers can do a few things to ensure compliance and avoid potential litigation. These steps include:
Know the Specific Labor Laws That Apply to Your Business
To stay compliant, you must first know the specific labor laws that apply to your business. With that in mind, focus your research on Texas state laws since the applicability of federal regulations for specific businesses varies with jurisdiction.
One of the most effective ways to familiarize yourself with state-level requirements is to read the Texas Employer Handbook and visit relevant state government websites for additional information.
Compile an Employee Handbook
Compiling an employee handbook is a time-consuming, painstaking process. However, it goes a long way in helping you stay compliant.
An employee handbook provides employees with valuable information about their rights and benefits, decreasing the potential for future disagreements and misunderstandings that might lead to lawsuits.
Use an Employment Agreement
An employee agreement solidifies the employment relationship. It protects both employer interests and employee rights, reducing the possibility of future misunderstandings.
Perform a Job Discrimination Self-Audit
Any discriminatory practices in the workplace could lead to costly consequences. As an employer, you must know which federal and state anti-discrimination laws apply to your business.
Performing a self-audit can ensure you comply with all of them.
Create a Compliance Checklist
Compliance guidelines can be hard to track without a checklist to refer to. Checklists help you determine whether you’re compliant or need to take further actions to stay compliant.
Consider delegating specific recurring duties to ensure all tasks are completed within specified deadlines.
Best Practices for Maintaining a Lawful and Ethical Workplace
Building a successful business isn’t just about following federal and state regulations; it’s also about safeguarding the best interests of your stakeholders and employees. To do so, you must implement company-wide practices to maintain an ethical workplace and reduce risks associated with harassment and other violations.
Here are some best practices to help you maintain an ethical culture in the workplace:
Create a Value-Based Culture That Encourages Ethical Standards
Companies that establish and maintain an ethical culture can stay compliant, perform better financially, and have a higher employee retention rate than companies that don’t regularly evaluate their ethical performance.
Superficial endorsements don’t work when it comes to motivating employees. They need to believe their employers are fully committed to doing things correctly.
By creating an atmosphere of trust and sincerity, employers can seek guidance from employees when faced with ethical dilemmas. This should lead to fewer ethical issues within a company and heightened employee motivation.
Constantly Assess Your Needs and Resources
You should evaluate several ethics-related aspects of your business, including:
- The common law and ethics challenges in the workplace
- The most important values to your company and its employees
- Essential ethics and compliance resources that would benefit your business
- The greatest risk areas in your business associated with lawful and ethical issues
Reevaluate and Assess as Needed
The laws and ethics around employee rights are constantly changing. Texas’ state legislature enacts new laws regularly, creating potential vulnerabilities for your business. Societal issues may also affect employees’ performance and feelings of inclusivity in the workplace.
Regularly evaluating your ethics and compliance practices allows you to better address potential issues and enact policies that promote a lawful and ethical workplace.
Ensure Overtime Compliance With Workyard
Navigating Texas’ complex landscape of employee rights can prove daunting, especially for new businesses. On the bright side, you can tap into many resources to stay updated on current laws and regulations. You should also apply relevant measures to stay compliant with state laws.
For many businesses, the only real solution to compliance challenges is great software. The right business management software tends to come with built-in compliance and recordkeeping rules, regardless of your industry, how many employees you have, what they do, or how widely they’re dispersed across the state (or country).
If you operate a construction or field services company, we humbly suggest trying Workyard for your compliance needs.
Workyard is built around the industry’s most accurate GPS tracking and geofencing technology, which ensures payroll accuracy across your workforce, no matter which job site you send them to or when you need them to work there. Workyard’s timesheet tracking system also comes with built-in federal and state overtime rules, as well as adjustable break rules you can customize at the employee level.
Workyard’s intuitive scheduling dashboard makes it easy to direct your workforce to the jobs you need to do based on their skill sets, locations, availability, and (of course) their weekly time worked – so you can avoid unnecessary overtime payments and reduce reimbursable travel expenses.
All of these tools work together to save you money. Minimize payroll waste, ensure regulatory compliance without lifting a finger, accurately assess project costs in real-time, and pay your team easily, thanks to seamless payroll processing integrations.
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