Guide to Texas Employment Law Houston Workers Need

13 min read

Introduction: Why Houston Employees Must Know Their Rights

Houston is the energy capital of the United States and one of the fastest-growing metropolitan areas in Texas. With thousands of employers ranging from Fortune 500 oil and gas corporations to cutting-edge tech start-ups, Houston employees enjoy diverse opportunities—but they also face unique workplace challenges. Texas is an at-will employment state, meaning an employer may generally terminate a worker for any reason or no reason at all, provided that reason is not illegal. Because the burden often falls on the employee to prove an unlawful motive, understanding Texas employment law is critical for safeguarding your livelihood, benefits, and professional reputation.

This comprehensive guide covers the most common employment disputes Houstonians encounter—wrongful termination, unpaid wages, discrimination, retaliation, and harassment—while providing clear, step-by-step strategies for asserting your rights. We reference authoritative sources such as the Texas Workforce Commission (TWC), the U.S. Equal Employment Opportunity Commission (EEOC), and the Texas Labor Code Chapter 21 so you can verify every legal requirement. If you believe your employer violated Texas workplace laws, Louis Law Group stands ready to evaluate your case free of charge at 833-657-4812.

Understanding Your Employment Rights in Texas

At-Will Employment and Its Limits

Under Texas common law, most employment relationships are presumed at-will: either party may end the relationship at any time for any lawful reason. However, four key exceptions protect Houston workers:

• Statutory protections (e.g., Title VII of the Civil Rights Act, Americans with Disabilities Act, Age Discrimination in Employment Act, and Texas Labor Code §21.051) prohibit adverse actions based on race, color, religion, sex (including pregnancy, sexual orientation, gender identity), national origin, disability, age (40+), or genetic information.

• Public policy exception: Employers cannot fire employees for refusing to perform illegal acts or for exercising statutory rights (whistleblowing, workers’ compensation claims, jury duty).

• Contractual limitations: A written employment contract, collective-bargaining agreement, or even a handbook promising progressive discipline may override at-will status.

• Retaliation prohibition: It is unlawful to retaliate against workers who oppose discrimination, report safety violations, or participate in protected activity.

Texas Wage and Hour Basics

The Fair Labor Standards Act (FLSA) sets the federal minimum wage ($7.25/hour) and overtime (time-and-a-half for hours worked beyond 40 in a workweek). Texas mirrors the federal minimum wage through the Texas Minimum Wage Act (Labor Code §62). Although some cities in other states implement higher local rates, no Texas municipality may currently mandate a wage above the state minimum, making federal standards critical for Houston workers.

Exempt vs. Non-Exempt: Whether you qualify for overtime depends on duties and salary thresholds. Administrative assistants, technicians, and many oil-field workers are often misclassified as exempt “independent contractors” or “salaried professionals.” Misclassification deprives employees of overtime and benefits, but you can challenge it by filing a wage claim with the TWC or U.S. Department of Labor (DOL).

Federal Anti-Discrimination Protections Applied in Texas

Title VII, the ADA, and the ADEA apply to Texas employers with at least 15 (or 20 for age claims) workers. These statutes prohibit disparate treatment, hostile work environments, and retaliation. Texas Labor Code Chapter 21 largely parallels federal law but offers additional remedies, such as potential punitive damages against smaller employers.

Common Employment Disputes in Texas

1. Wrongful Termination

Although Texas is an at-will state, terminations are illegal when based on protected characteristics or retaliation. A 2021 Fifth Circuit decision, Pledger v. Reliant Energy Retail Services, reaffirmed that termination following an employee’s internal complaint of racial discrimination raised a triable issue of retaliatory motive. Employees prevail when they establish a causal link between protected activity and adverse action.

2. Wage and Hour Violations

Houston’s dynamic industries often require long shifts. Common violations include:

• Failure to pay overtime for hours over 40.

• Off-the-clock work (answering emails after hours).

• Improper tip pooling in restaurants.

• Misclassification as an “independent contractor.”

3. Discrimination and Harassment

Texas Labor Code §21.106 forbids harassment that creates a hostile work environment. In Alamo Heights Independent School District v. Clark (Tex. 2018), the Texas Supreme Court clarified that severe or pervasive conduct can support a harassment claim even if direct supervisors are uninvolved.

4. Retaliation and Whistleblower Reprisal

Texas Government Code §554 protects public-sector employees who report law violations. Private-sector workers rely on federal statutes like the Sarbanes-Oxley Act or the Occupational Safety and Health Act’s anti-retaliation provisions. Proving retaliation requires showing that (1) you engaged in protected activity, (2) you suffered an adverse action, and (3) a causal connection exists.

Texas Legal Protections & Regulations

Key Statutes and Agencies

• Texas Labor Code Chapter 21: State anti-discrimination law covering employers with 15+ employees; mirrors Title VII but allows complaints through the TWC.

• Texas Payday Act (Labor Code §61): Provides administrative remedy for unpaid wages via TWC within 180 days of the wages becoming due.

• Texas Minimum Wage Act (Labor Code §62): Adopts federal minimum wage standards.

• Federal statutes: FLSA, FMLA, Title VII, ADA, ADEA, Equal Pay Act, and more.

Filing Deadlines (Statutes of Limitations)

• Discrimination / Harassment: 180 days to file with TWC or 300 days with EEOC (because Texas has a work-sharing agreement). Missing this window usually bars your claim.

• Retaliation under Title VII: Same 180/300-day window.

• FLSA Wage Claims: Two years (three if violation is willful) to file in federal court.

• Texas Payday Act: 180 days from when wages became due.

• Whistleblower Act (public employees): 90 days to sue after the adverse action, but must first initiate grievance procedures.

The Texas Workforce Commission (TWC) Complaint Process

• Intake: Submit a Charge of Discrimination or Wage Claim online, in person at a Houston Workforce Solutions office, or by mail.

• Agency Investigation: TWC investigates, interviews witnesses, and may attempt mediation.

• Right-to-Sue Letter: If unresolved, you receive a Notice of Right to File Civil Action, typically within 180 days.

• Civil Lawsuit: You have 60 days after receiving notice to file suit under state law (vs. 90 days for EEOC federal claims).

EEOC Field Offices Serving Houston

The EEOC Houston District Office (1919 Smith St., Suite 600) processes most federal charges. Walk-ins are accepted, but appointments speed service. The office participates in the work-sharing agreement with TWC, so dual-filing is automatic—protecting both state and federal rights.

Steps to Take After an Employment Dispute

Employees who act promptly and strategically improve their chances of success. Follow this action plan:

Document Everything

• Save termination letters, pay stubs, performance reviews, and emails.

• Keep a contemporaneous journal of discriminatory remarks, dates, witnesses, and emotional impact.

• Photograph timecards and schedules if overtime is disputed.

• Request Your Personnel File Texas law does not require private employers to provide your file, but many will upon written request, especially if you cite the Texas Personnel File Act (applicable to public employees). A snapshot of your employment history can reveal inconsistencies in the employer’s stated reason for termination.

• Internal Complaints Follow your company’s grievance procedure or HR policy. Exhausting internal remedies may strengthen retaliation claims if they ignore or punish you.

• File Timely Agency Complaints Meet the 180/300-day discrimination window and the 180-day wage claim period. File online or visit the Houston EEOC office.

• Consult a Texas Employment Attorney Complex cases—especially involving class actions, high-level executives, or whistleblower statutes—require legal expertise. Attorneys can draft demand letters, negotiate severance, and file lawsuits.

When to Seek Legal Help in Texas

While some wage claims resolve through the TWC or DOL, many disputes require experienced counsel. Consider hiring a Texas employment attorney when:

• You face retaliation after reporting discrimination or safety violations.

• You are asked to sign a severance or non-compete agreement.

• You suspect systemic discrimination involving multiple employees.

• Your unpaid wages exceed $20,000 or span several years.

• You are unsure about filing deadlines or procedural rules.

Louis Law Group’s attorneys are licensed in Texas, active in the Houston Bar Association, and litigate cases in both state and federal courts. Our team conducts free case evaluations—reviewing pay records, offer letters, and employment contracts—to determine the best path forward. If you believe your workplace rights have been violated, call Louis Law Group at 833-657-4812.

Local Resources & Next Steps

Texas Workforce Commission Civil Rights Division – File state discrimination charges online. EEOC Houston District Office – Schedule an intake interview or submit a charge. Houston Bar Association Lawyer Referral Service – Locate certified employment attorneys.

• Legal Aid of NorthWest Texas and Lone Star Legal Aid – Offer free or low-cost representation for qualifying individuals.

Disclaimer: The information provided in this guide is for educational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship between you and Louis Law Group or any of its attorneys. Laws change frequently; consult a qualified Texas employment attorney regarding your specific circumstances.

Next Steps: Take control of your case by gathering documents, meeting statutory deadlines, and getting professional help. Call Louis Law Group today at 833-657-4812 for a free case evaluation and policy review.