Houston Guide to Texas Employment Law & Employee Rights

Estimated read time: 13 min read

Introduction: Why Knowing Your Rights Matters in Houston

Houston’s labor market is the largest in Texas and one of the most diverse in the United States. From the energy corridor to the booming healthcare and tech sectors, more than 3.3 million workers keep Greater Houston moving. Yet every year thousands confront challenges such as wrongful termination, unpaid overtime, workplace discrimination, retaliation, and harassment. Because Texas is an at-will employment state, many employees mistakenly believe they have no recourse when treated unfairly. In reality, federal laws, the Texas Labor Code, and local ordinances offer significant protections—if you know how to use them. This comprehensive guide explains the key statutes, deadlines, and steps Houston employees should follow to safeguard their careers and financial well-being.

Legal disclaimer: This guide is for educational purposes only and does not constitute legal advice. Consult a licensed Texas employment attorney about your specific situation. Results depend on individual facts.

Understanding Your Employment Rights in Texas

1. Texas At-Will Employment—The Starting Point

Texas follows the at-will doctrine, meaning an employer may terminate an employee for any reason—or no reason—unless the reason violates a statute, public policy, or an express contract. Common exceptions include:

• Discrimination based on a protected characteristic.

• Retaliation for protected activity (e.g., whistleblowing, filing a workers’ compensation claim).

• Refusal to commit an illegal act.

• Termination in violation of an employment contract or collective bargaining agreement.

2. Protected Classes Under Federal and State Law

Both Title VII of the Civil Rights Act (42 U.S.C. § 2000e) and Chapter 21 of the Texas Labor Code prohibit discrimination based on race, color, national origin, sex (including pregnancy, sexual orientation, and gender identity), religion, age (40+), disability, and genetic information. Chapter 451 of the Labor Code protects employees who file workers’ compensation claims from retaliation.

3. Wage and Hour Rights

The federal Fair Labor Standards Act (FLSA) sets minimum wage ($7.25/hour) and overtime (1.5× pay for hours beyond 40 per week) requirements. Texas has adopted the federal rates. The Texas Payday Law, administered by the Texas Workforce Commission (TWC), governs timely wage payments, bonuses, commissions, and deductions.

4. Additional Protections

• Family and Medical Leave Act (FMLA): Up to 12 weeks unpaid, job-protected leave for certain health and family issues.

• Uniformed Services Employment and Reemployment Rights Act (USERRA): Safeguards service members’ civilian jobs.

• Occupational Safety and Health Act (OSHA): Ensures safe workplaces and prohibits retaliation for safety complaints.

Common Employment Disputes in Texas

1. Wrongful Termination

Although “wrongful termination” is not a standalone statute, firing an employee for discriminatory or retaliatory reasons is unlawful. Notable Texas cases such as Mission Consol. Indep. Sch. Dist. v. Garcia, 372 S.W.3d 629 (Tex. 2012) reaffirm that employees may recover lost wages and emotional distress damages for retaliatory discharge.

2. Retaliation for Whistleblowing

Texas Government Code § 554.002 shields public-sector employees who report illegal conduct. Private-sector workers rely on federal whistleblower laws (e.g., Sarbanes-Oxley, Dodd-Frank) and the Sabine Pilot exception, which prohibits firing an employee solely for refusing to perform an illegal act.

3. Wage & Hour Violations

Oil and gas, hospitality, and healthcare are frequent hotspots for unpaid overtime claims in Houston. Misclassification of employees as independent contractors or “exempt” salaried staff can deprive workers of overtime pay.

4. Discrimination & Harassment

According to the EEOC’s Houston District Office, nearly 3,500 discrimination charges were filed in fiscal year 2023 alone, with retaliation, race, and sex discrimination leading the list.

Texas Legal Protections & Regulations

1. Texas Labor Code Highlights

• Chapter 21: Mirrors many Title VII protections and applies to employers with 15+ workers (certain retaliation provisions apply to all employers).

• Chapter 61 (Texas Payday Law): Requires employers to pay all wages owed, generally no later than the next regular payday.

• Chapter 62: Adopts FLSA wage standards.

• Chapter 451: Protects workers’ compensation claimants from retaliation.

2. Agencies & Enforcement

The Texas Workforce Commission (TWC) investigates wage claims and unemployment appeals. Discrimination complaints are dual-filed with the EEOC and TWC Civil Rights Division under a work-sharing agreement, avoiding duplicate filings.

3. Key Filing Deadlines (Statutes of Limitations)

• EEOC/TWC Discrimination Charge: 300 days from the discriminatory act (Texas is a deferral state).

• Texas Payday Claim: 180 days after the wages were due.

• FLSA Lawsuit: 2 years for standard violations, 3 years if willful.

• Workers’ Compensation Retaliation (Tex. Lab. Code § 451): 2 years in state court.

• Sabine Pilot Wrongful Discharge: 2 years.

4. Remedies Available

• Back pay and front pay

• Reinstatement or promotion

• Compensatory damages for emotional distress

• Punitive damages (in cases of malice or reckless indifference)

• Attorneys’ fees and costs

• Liquidated damages for willful FLSA violations

Steps to Take After an Employment Dispute

Document Everything

  - Keep emails, text messages, performance reviews, and timesheets.

  - Write a chronology of events while memories are fresh.

Review Your Employer’s Policies

  - Handbooks often outline complaint procedures you must exhaust first.

File an Internal Complaint

  - Notify HR in writing; request confirmation of receipt.

Contact the Appropriate Agency

  Discrimination: File a Charge with the EEOC/TWC ([EEOC Houston District Office](https://www.eeoc.gov/field/houston)).
  - Unpaid Wages: Submit a wage claim to TWC.

  - OSHA Safety Issues: File an OSHA complaint within 30 days for retaliation claims.

Preserve Digital Evidence

  - Back up files to personal, secure storage—ensure no violation of employer data policies.

Consult a Texas Employment Attorney

  - Discuss deadlines, damages, and whether to request a “right-to-sue” letter from the EEOC.

When to Seek Legal Help in Texas

While some disputes resolve internally, you should speak with counsel if:

• You receive a termination notice after complaining about illegal conduct.

• HR dismisses your complaint or retaliates.

• Significant back pay or future wages are at stake.

• Your employer proposes a severance agreement with a release of claims.

• Deadlines are approaching and you need a prompt EEOC filing.

Texas employment litigation is nuanced; for instance, failure to correctly identify the employer entity on a Charge may bar later lawsuits. A knowledgeable attorney ensures compliance with procedural rules, calculates damages, and negotiates from a position of strength. Louis Law Group has deep experience representing Houston employees in state and federal courts, arbitration, and agency hearings.

Local Resources & Next Steps

• Texas Workforce Commission (TWC): Employment law information, wage claim forms, and unemployment appeals.

• EEOC Houston District Office: 1919 Smith Street, Suite 6A70; phone 800-669-4000.

Texas Labor Code Chapter 21 – statutory text. Houston Volunteer Lawyers – free or low-cost representation for qualifying residents.

If you believe your workplace rights have been violated, call 833-657-4812 for a free case evaluation with Louis Law Group. Our attorneys will review your documentation, calculate potential damages, and map out the strongest strategy to protect your livelihood.