Texas Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More for 2025

Let’s take a deep dive into Texas labor laws, with details on all the important aspects of the state’s regulations on your employees.

texas labor laws
Frequently Asked Questions
What is the minimum wage in Texas?

Under Texas labor laws, the minimum wage is $7.25 per hour, which aligns with the federal minimum wage. Texas does not have a state-specific minimum wage, meaning all employers must comply with this federal standard unless local city ordinances require higher pay for municipal employees or contractors. Employers must also ensure that tipped workers receive enough tips to make their total pay equal to or above the minimum wage. If not, the employer must make up the difference.

Who is exempt from overtime pay in Texas?

Texas follows federal exemptions for overtime pay under the Fair Labor Standards Act (FLSA). Employees in executive, administrative, and professional roles who earn at least $684 per week (or $1,128 per week starting January 2025) are exempt from overtime pay. Outside sales employees and certain seasonal or recreational workers are also exempt. To qualify, employees must meet both salary and job duties requirements. Workers earning below these thresholds are entitled to overtime pay for hours worked over 40 in a week.

How does Texas regulate meal and rest breaks?

Texas labor laws do not require employers to provide rest or meal breaks for adult employees. However, if an employer chooses to offer breaks, short breaks (typically 5 to 20 minutes) must be paid. Meal breaks of 30 minutes or more are generally unpaid, as long as the employee is relieved of all duties during the break. For minors, Texas law mandates a 30-minute meal break if the work shift exceeds 5 hours. Many employers voluntarily offer breaks as part of their internal policies.

Are tipped employees paid differently in Texas?

Yes, tipped employees in Texas can be paid a lower wage of $2.13 per hour, as long as their combined wages and tips meet the federal minimum wage of $7.25 per hour. Employers must ensure that the total earnings, including tips, meet or exceed this threshold. If tips are insufficient, the employer is required to cover the shortfall. This rule ensures tipped employees still earn a livable wage, even with a lower base pay.

What are the rules for youth employment in Texas?

Texas labor laws regulate youth employment for individuals under 18 years old, restricting the hours they can work and the types of jobs they can do. Minors aged 14-15 can work outside of school hours but for no more than 8 hours a day or 40 hours a week during the summer. During the school year, they can work up to 3 hours on a school day and 18 hours a week. Youth workers under 20 can also be paid a training wage of $4.25 per hour for the first 90 days of employment.

What are Texas' labor laws on final paychecks after termination?

Under Texas labor laws, when an employee is terminated, their employer must issue the final paycheck within six days of the termination. This includes any wages earned up to the last day of employment. If the employee quits voluntarily, the final paycheck must be paid no later than the next regularly scheduled payday.

Texas does not require employers to pay unused vacation time or other benefits unless stipulated in the employee’s contract or company policy. It’s important for both employers and employees to clearly understand the company’s written policies regarding termination payments.

How does Texas handle overtime pay?

Texas follows federal guidelines for overtime pay under the Fair Labor Standards Act (FLSA). Employees must receive 1.5 times their regular pay for any hours worked over 40 hours in a workweek unless they are exempt from overtime due to their job role and salary level.

Non-exempt employees are entitled to this overtime pay, while exempt employees, such as those in executive or administrative positions, must meet both salary and job duties requirements to be excluded from overtime pay. It’s important to check if your job is categorized as exempt or non-exempt to determine eligibility for overtime pay.

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