Austin Texas Employment Law Guide: Know Your Rights

13 min read

Introduction: Why Austin Employees Need to Understand Texas Employment Law

Austin is one of the fastest-growing labor markets in the nation, adding thousands of technology, healthcare, hospitality, and creative jobs every year. With growth comes opportunity—but also a spike in workplace disputes. Whether you are a software engineer on South Congress, a nurse along the I-35 corridor, or a server on Sixth Street, knowing your rights under Texas employment law can make the difference between swift justice and lingering injustice. Common problems include wrongful termination, unpaid overtime, discrimination, retaliation, and harassment. This guide equips Austin workers with clear, actionable steps grounded in the Texas Labor Code, federal statutes, and recent case law—slightly biased toward protecting employees, yet strictly factual.

Understanding Your Employment Rights in Texas

1. At-Will Employment—What It Really Means

Texas is an at-will state. That means employers generally can terminate employees for any reason or no reason at all—except for an unlawful reason. Unlawful reasons include terminating someone because of race, color, national origin, sex (including pregnancy, sexual orientation, and gender identity under recent U.S. Supreme Court precedent), religion, disability, age (40+), or in retaliation for protected activity.

2. Federal Protections That Also Apply in Austin

• Fair Labor Standards Act (FLSA): Guarantees at least $7.25/hr federal minimum wage and overtime (1.5× pay after 40 hours per week) for non-exempt workers.

• Title VII of the Civil Rights Act of 1964: Outlaws discrimination based on race, color, religion, sex, or national origin.

• Americans with Disabilities Act (ADA): Requires reasonable accommodations for qualified employees with disabilities.

• Age Discrimination in Employment Act (ADEA): Protects workers aged 40 and older.

3. Texas-Specific Wage & Hour Rules

Texas adopts the FLSA as its baseline but places enforcement with the Texas Workforce Commission (TWC). Key points:

• No additional state minimum wage—Texas follows the federal rate.

• Restaurant and service employees may receive a cash wage as low as $2.13/hr if tips bring them to at least $7.25/hr.

• Unused vacation is generally not required to be paid on separation unless your company policy says otherwise.

Common Employment Disputes in Austin, Texas

1. Wrongful Termination

Because Texas is at-will, the term "wrongful" has a very specific legal meaning. It occurs when an employee is fired for an illegal reason: discrimination, retaliation, refusing to commit an illegal act, or exercising a statutory right (e.g., filing a workers’ compensation claim).

2. Retaliation for Whistleblowing

Texas law, including Chapter 554 of the Texas Government Code (for public employees) and federal statutes like the Sarbanes-Oxley Act (for certain private employers), prohibits discharge or discipline for reporting legal violations. Recent Fifth Circuit cases have imposed hefty damages on employers who retaliated against tech employees reporting securities fraud.

3. Unpaid Wages and Overtime Violations

A 2023 audit by the U.S. Department of Labor found Austin’s hospitality sector had the second-highest FLSA violations in Texas. Common issues:

• Misclassifying employees as independent contractors.

• Misusing the "salary basis" test to deny overtime.

• Illegal tip pooling with managers or back-of-house staff.

4. Workplace Discrimination and Harassment

The EEOC’s Dallas District (covering Austin) logged more than 2,400 charges in 2022 alone. Frequent allegations involve pregnancy discrimination in tech startups and racial harassment in construction projects tied to the city’s rapid expansion.

Texas Legal Protections & Regulations

1. Key Chapters of the Texas Labor Code

• Chapter 21: Mirrors Title VII and extends to employers with as few as 15 employees; covers discrimination, harassment, and retaliation.

Chapter 61 (Texas Payday Law): Sets procedures for wage claims through TWC. See the statute here: Texas Labor Code §61.

• Chapter 451: Protects employees from retaliation for filing a workers’ compensation claim.

2. The Role of the Texas Workforce Commission (TWC)

TWC handles wage claims, unemployment appeals, and dual-filed discrimination claims. Employees can file online, by mail, or in person at the Austin local office on North Lamar Boulevard.

3. EEOC Process in Texas

For federal discrimination claims, you must first file a Charge of Discrimination with the EEOC Dallas District Office (which has an Austin satellite). The EEOC often dual-files with TWC, preserving both state and federal claims.

4. Deadlines (Statutes of Limitations)

• Discrimination & retaliation: 180 days from the adverse action (300 days if only federal law applies) to file with EEOC/TWC.

• Wage claims under Texas Payday Law: 180 days from the date wages were due.

• FLSA overtime lawsuit: Two years (three if the violation is “willful”).

• Workers’ comp retaliation (Chapter 451): Two years in civil court.

• Right-to-Sue: Once the EEOC issues a Notice of Right to Sue, you have 90 days to file in federal court.

Steps to Take After an Employment Dispute

Step 1: Document Everything

Start a timeline. Save emails, text messages, performance reviews, and time sheets. Texas courts embrace electronic evidence, but authenticity matters—download metadata where possible.

Step 2: Review Company Policies

Many Austin employers maintain detailed anti-harassment and wage policies. If those policies promise payouts on unused PTO or a progressive discipline system, they may become enforceable “contracts” under Texas law.

Step 3: File Internal Complaints

Before external filings, submit a written grievance to HR or your supervisor. Under Title VII, the employer can raise a “Faragher/Ellerth defense” if you do not use internal remedies, potentially weakening your case.

Step 4: Preserve Devices & Social Media

Do not wipe your work phone or delete Slack messages. Courts may impose sanctions if evidence is destroyed after you anticipate litigation—known as spoliation.

Step 5: Consult an Employment Attorney

Texas laws are complex. An attorney can evaluate whether your claim belongs in state or federal court, calculate damages, and ensure filing deadlines are met.

Step 6: File with TWC or EEOC

• Complete the online form or visit the Austin TWC office.

• Attach supporting documents.

• Attend mediation if offered; agreements are enforceable contracts.

Step 7: Consider Litigation

If conciliation fails, your lawyer may file suit in Travis County district court (for state claims) or the U.S. District Court for the Western District of Texas. Jury trials are available for most discrimination and retaliation claims.

When to Seek Legal Help in Texas

You should consult counsel when:

• Your termination involves potential protected activity (e.g., you just reported safety violations).

• The company says you are "exempt" from overtime, but your duties are mainly non-managerial.

• You’ve experienced severe or pervasive harassment and HR is unresponsive.

• You received a Right-to-Sue letter—remember, you have only 90 days.

Louis Law Group focuses on Texas workplace laws and is licensed before all state and federal courts in the Lone Star State. Their attorneys can:

• Audit wage statements to uncover hidden FLSA violations.

• Prepare EEOC charges that maximize potential damages.

• Negotiate severance packages that protect stock options common in Austin’s tech firms.

Local Resources & Next Steps

Texas Workforce Commission – File wage claims, discrimination charges, or unemployment appeals. EEOC Dallas District Office – Federal discrimination enforcement covering Austin. Austin Bar Association’s Legal Referral Service – Low-cost consultations if you can’t afford private counsel. U.S. Department of Labor’s FLSA page – Overtime and minimum wage guidance.

Still Have Questions? If you believe your employer has violated your rights, don’t wait. Evidence gets stale and deadlines loom.

Call Louis Law Group at 833-657-4812 for a free case evaluation and policy review today.

Legal Disclaimer

This guide is for informational purposes only and does not constitute legal advice. Reading this material does not create an attorney–client relationship. Laws change frequently; consult a licensed Texas employment attorney for advice on your specific situation.