Dallas Guide to Texas Employment Law Disputes

Estimated read time: 12 min read

Introduction: Why Dallas Employees Need to Know Their Rights

Dallas–Fort Worth ranks among the fastest-growing employment hubs in the United States, boasting more than 3.7 million workers across technology, healthcare, logistics, energy, and hospitality. While this dynamic labor market creates opportunity, it also spawns workplace disputes—ranging from unpaid overtime in distribution centers along I-20 to discrimination claims in Uptown law firms. Employees who understand Texas employment law can better protect their livelihoods, negotiate fair settlements, and, when necessary, pursue litigation.

Texas follows the at-will employment rule, which allows either party to terminate employment at any time for almost any reason. However, “almost” is the operative word. State and federal statutes carve out vital protections against wrongful termination, wage theft, retaliation, and harassment. If you are a worker in Dallas experiencing any of the following, this guide is for you:

• Wrongful termination after reporting safety violations at a manufacturing plant in Irving.

• Unpaid overtime for 60-hour weeks at a Cedar Springs restaurant.

• Retaliation for taking protected family leave while working at a Bishop Arts retailer.

• Sexual or racial harassment in a downtown tech start-up.

This comprehensive guide—tailored specifically to Dallas, Texas—explains your rights, key deadlines, and step-by-step actions. We lean slightly toward empowering employees because informed workers build safer, more equitable workplaces.

Understanding Your Employment Rights in Texas

At-Will Employment—With Exceptions

Texas Labor Code § 22.001 confirms that employment is at-will unless a contract, statute, or public policy dictates otherwise. Employers cannot, however, fire you for illegal reasons such as discrimination or retaliation. If they do, you may have a wrongful termination claim.

Protected Classes Under Federal and State Law

Title VII of the Civil Rights Act of 1964 and Texas Labor Code Chapter 21 protect employees from discrimination based on race, color, sex (including pregnancy, sexual orientation, and gender identity), national origin, religion, age (40+), disability, or genetic information. These protections apply to employers with at least 15 employees (20 for age discrimination). Independent contractors generally are not covered, but the law examines the factual relationship—so don’t assume you are excluded simply because your employer uses the “1099” label.

Wage and Hour Protections

The Fair Labor Standards Act (FLSA) sets the federal minimum wage ($7.25/hour) and overtime requirements. Texas has not adopted a higher state minimum wage, meaning the federal rate controls. Non-exempt employees must receive 1.5× pay for hours worked beyond 40 in a workweek. Certain positions are “exempt,” but misclassification is common, especially in Dallas’s booming gig-economy.

Retaliation and Whistleblower Protections

Both federal statutes (e.g., Title VII, FLSA, Family and Medical Leave Act) and state laws (e.g., Texas Whistleblower Act for public employees) prohibit retaliation for asserting legal rights. Examples include demotion, pay cuts, hostile scheduling, or termination after you file an EEOC charge.

Common Employment Disputes in Texas

Wrongful Termination

Because Texas is at-will, wrongful termination hinges on impermissible motives or breach of contract. You may have a claim if discharged due to:

• Reporting OSHA safety violations at a Dallas construction site.

• Taking protected medical leave under the FMLA.

• Refusing to commit an illegal act, such as falsifying SEC filings.

Wage & Hour Violations

Common issues include off-the-clock work, improper tip pooling in Deep Ellum restaurants, and misclassifying salaried managers who primarily perform non-exempt tasks. The FLSA allows recovery of back wages plus “liquidated damages” (an amount equal to the unpaid wages) and attorney’s fees.

Discrimination & Harassment

Texas Labor Code § 21.051 mirrors Title VII. If you are harassed because of protected traits, your employer must promptly investigate and correct the conduct. Failure to do so may create liability.

Retaliation After Whistleblowing

Employees who report Medicaid fraud at a Dallas hospital or securities violations at a Plano financial firm can seek protection under federal statutes, the Texas Whistleblower Act (public employees), or the Texas False Claims Act.

Texas Legal Protections & Regulations

Texas Workforce Commission (TWC) Role

The Texas Workforce Commission enforces state antidiscrimination laws and administers unemployment benefits. Dallas employees usually file a charge with the TWC Civil Rights Division, which automatically dual-files with the EEOC if federal claims apply.

Filing Deadlines

• Discrimination/Harassment: 180 days from the adverse action to file with TWC; 300 days to file with the EEOC. Once the agency issues a Notice of Right to Sue, you typically have 60 (state) or 90 (federal) days to file suit.

• FLSA Wage Claims: 2 years (3 if the violation is “willful”).

• Texas Whistleblower Act: 90 days from the adverse action (public employees only) to file suit after exhausting grievance procedures.

• Breach of Written Employment Contract: 4-year statute of limitations.

Recent Texas Case Law

In Alamo Heights ISD v. Clark, 544 S.W.3d 755 (Tex. 2018), the Texas Supreme Court clarified that severe or pervasive harassment can create liability, aligning state law with federal standards. Meanwhile, Allen v. Walmart, No. 05-21-00555-CV (Tex. App.—Dallas 2023) reinforced the importance of job-related and consistent reasons for termination decisions.

Enforcement Agencies

EEOC Dallas District Office (207 S. Houston St., Dallas): Handles federal discrimination charges.

• TWC Civil Rights Division: Investigates state discrimination claims.

• U.S. Department of Labor Wage and Hour Division (Dallas District): Enforces FLSA.

Steps to Take After an Employment Dispute

Document Everything

Keep emails, performance reviews, time cards, text messages, and witness names. In Texas, you may record conversations if at least one party (you) consents (Tex. Penal Code § 16.02), but confirm no federal restrictions apply. Review Internal Policies

Many Dallas employers have grievance, arbitration, or complaint procedures. Follow them promptly to preserve claims and appear cooperative. File Agency Charges Timely

Submit a sworn charge to the TWC or EEOC before the 180-/300-day deadline. You can file online, by mail, or in person. The agency will notify your employer and may mediate. Apply for Unemployment Benefits

If terminated, file with TWC within 14 days. Even if you are appealing a denial, the record can support wrongful termination claims. Maintain Medical and Financial Records

If you suffer emotional distress or lost wages, keep doctor notes, therapy bills, and pay stubs. Avoid Social Media Missteps

Anything you post is discoverable. Adjust privacy settings and think twice before venting online. Consult an Employment Attorney

Early legal advice can help maximize back-pay recovery and avoid procedural traps—like missing a 90-day deadline after a Right-to-Sue letter.

When to Seek Legal Help in Texas

Some disputes resolve through HR or agency mediation, but you should contact an employment attorney when:

• You receive a Notice of Right to Sue and have limited time to act.

• Your employer offers a severance agreement that waives statutory rights.

• You fear retaliation for filing an internal complaint.

• The wage loss or emotional harm is significant.

Texas attorneys must be licensed by the State Bar of Texas and maintain good standing. Ensure your lawyer regularly practices in employment law and is familiar with the Northern District of Texas federal court and Dallas County courts.

Louis Law Group champions workers’ rights statewide. Our Dallas-based team reviews cases for free and fronts litigation costs—you pay nothing unless we recover. If your workplace rights have been violated, call 833-657-4812 for a complimentary consultation.

Local Resources & Next Steps

Dallas Bar Association Labor & Employment Section – Continuing education and lawyer referrals. Texas Labor Code, Chapter 21 – Anti-discrimination statute.

• Legal Aid of Northwest Texas – Free or low-cost representation for qualifying employees.

Take Action Today

Employment disputes have strict deadlines. Preserve your rights by documenting, filing timely, and obtaining legal counsel. If you believe your workplace rights have been violated, call 833-657-4812 for a free case evaluation with Louis Law Group.

Disclaimer: This guide is for educational purposes and does not constitute legal advice. Viewing it does not create an attorney-client relationship. Laws change frequently; consult a qualified Texas employment attorney regarding your specific situation.