Houston Guide to Texas Employment Law: Know Your Rights

Estimated read time: 11 min read

Introduction: Why Knowing Your Rights Matters in Houston, Texas

Houston is the economic powerhouse of Texas, home to nearly 3.0 million workers across energy, health care, logistics, and an increasingly diverse tech sector. While its booming job market offers opportunity, it also produces thousands of workplace disputes every year—from unpaid overtime in the oilfield services industry to discrimination in white-collar corporate offices downtown. Understanding Texas employment law Houston style is critical because the Lone Star State follows at-will employment, making it easier for employers to terminate workers. Yet state and federal law still protect employees from wrongful termination, unpaid wages, retaliation, harassment, and discrimination. This comprehensive guide—written from a slightly employee-centered perspective—explains the key laws, deadlines, and action steps you need to safeguard your career and earnings in Houston.

Understanding Your Employment Rights in Texas

1. At-Will Employment—But Not “Anything Goes”

Texas is an at-will state, meaning employers may terminate employees for any legal reason—or no reason—unless it violates a statute, public policy, or an employment contract. Exceptions include:

• Discrimination: firing based on race, color, religion, sex (including pregnancy, sexual orientation, and gender identity), national origin, age (40+), disability, or genetic information violates Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA).

• Retaliation: employers cannot fire or demote you for reporting illegal conduct or participating in an investigation.

• Refusal to Commit an Illegal Act: under Texas public policy, you cannot be fired for refusing to perform an illegal task.

• Whistleblowing: public employees are protected under the Texas Whistleblower Act; certain private-sector whistleblowers are covered by federal statutes such as the Sarbanes-Oxley Act.

2. Wage and Hour Protections

The federal Fair Labor Standards Act (FLSA) sets the minimum wage ($7.25/hour) and overtime (1.5× pay after 40 hours weekly). Texas adopts those baselines in the Texas Labor Code. Key Houston-area concerns:

• Oilfield Day-Rate Workers: Courts—including Hobbs v. Petroplex Pipe & Construction, Inc. (5th Cir. 2022)—have held that day-rate employees may still be owed overtime unless they meet specific salary-basis tests.

• Misclassification: Many gig-economy or construction workers are erroneously labeled “independent contractors” to avoid overtime. The Department of Labor applies a multi-factor test; no single factor is decisive.

3. Federal Versus State Oversight

Texas employees typically file discrimination or retaliation charges with the Texas Workforce Commission Civil Rights Division (TWC-CRD) or the Equal Employment Opportunity Commission (EEOC). Wage complaints can also go through the Wage and Hour Division of the U.S. Department of Labor. Familiarity with both sets of procedures is essential because missing a deadline can end your claim before it begins.

Common Employment Disputes in Texas

Below are the most frequent workplace problems Houston employees encounter, plus the statutes that govern them.

Wrongful Termination

• Discriminatory firing: Covered by Title VII, ADEA, ADA, Genetic Information Nondiscrimination Act (GINA), and Chapter 21 of the Texas Labor Code.

• Retaliatory discharge: Section 21.055 of the Texas Labor Code prohibits retaliation against employees who oppose discrimination.

Wage & Hour Violations

• Unpaid overtime: FLSA and Texas Labor Code §§ 62.001–62.205.

• Off-the-clock work: Pre- and post-shift activities can be compensable under the Portal-to-Portal Act if they are integral to principal duties.

Discrimination & Harassment

• Hostile work environment: Must be severe or pervasive conduct based on protected status. The Fifth Circuit (which includes Texas) uses a “totality of circumstances” test.

• Failure to accommodate disability: Employer must engage in interactive process under ADA and Texas Labor Code § 21.128.

Retaliation & Whistleblower Claims

• Public employees: Texas Whistleblower Act (Tex. Gov’t Code § 554.002).

• OSHA complaints: Section 11(c) protects employees reporting safety hazards.

Breach of Employment Contracts

• While rare in at-will settings, Houston’s energy sector often uses written employment agreements and non-compete clauses. Breaches trigger common-law remedies and Texas Business & Commerce Code §§ 15.50–15.52.

Texas Legal Protections & Regulations

1. Texas Labor Code & Key Statutes

• Chapter 21: Mirrors federal discrimination law but requires charges to be filed within 180 days of the discriminatory act—shorter than the EEOC’s 300-day window when state law also covers the claim.

• Chapter 61: Texas Payday Law lets employees file wage claims with TWC within 180 days of the unpaid wages.

• Chapter 62: Addresses minimum wage, adopting FLSA rates.

• Chapter 451: Prohibits retaliation for filing a workers’ compensation claim.

2. Administrative Enforcement

Houston workers usually must exhaust administrative remedies before suing:

Discrimination / Harassment: File Charge of Discrimination with TWC-CRD or EEOC Houston District Office (EEOC Houston Office).

• Wage Claims: File online with TWC or federal Wage and Hour Division.

• Retaliation (OSHA): Complaints must be filed within 30 days (some statutes allow up to 180).

After a charge is filed, agencies investigate, may mediate, and can issue a “right-to-sue” letter—giving you 60 days (Texas) or 90 days (federal) to file suit.

3. Statutes of Limitation—Don’t Miss Your Window

• Discrimination (state): 2 years after receiving Texas right-to-sue letter.

• Discrimination (federal): 90 days after EEOC right-to-sue.

• FLSA unpaid wages: 2 years, extended to 3 for willful violations.

• Workers’ comp retaliation: 2 years.

• Written employment contract breach: 4 years.

Steps to Take After an Employment Dispute

1. Preserve Evidence Immediately

• Document Everything: Keep emails, texts, performance reviews, time sheets, pay stubs.

• Timeline: Create a chronological log of incidents (dates, witnesses, what was said, and your response).

• Secure Personal Copies: Use personal—not company—devices or cloud storage to avoid employer deletion.

2. Use Internal Complaint Mechanisms

Many Houston employers maintain policies that complaints must first be filed with HR. Doing so can:

• Trigger an internal investigation, perhaps resolving the issue quickly.

• Create a formal record proving you objected to illegal conduct—vital for retaliation claims.

3. File Administrative Charges

Discrimination or Harassment:

• Submit an Intake Questionnaire to EEOC or TWC-CRD within 180 days (best practice: do it within 45 days of the incident).

• If dual-filed, the EEOC extends the window to 300 days.

• Attend mediation if offered; many cases settle here.

Wage Claims:

• For amounts under $10,000, you can use the TWC Payday Claim form online.

• Provide timesheets, pay stubs, and witness statements.

• TWC investigators will request employer records and issue a determination.

4. Calculate Damages

Potential remedies include:

• Lost wages and benefits.

• Liquidated damages (FLSA).

• Compensatory and punitive damages (capped under federal law based on employer size).

• Attorney’s fees and court costs.

• Reinstatement or front pay.

5. Avoid Retaliation Traps

Retaliation claims are among the fastest-growing filings in Texas. If your employer changes your schedule, pay, or duties after you complain, update your evidence log, notify HR in writing, and consult an attorney quickly.

When to Seek Legal Help in Texas

While some disputes resolve through HR or agency processes, many require skilled legal representation—especially in complex areas like oil-and-gas day-rate overtime or multi-statute discrimination claims. You should contact a Texas employment attorney when:

• Your employer or agency deadlines are approaching (e.g., 90-day right-to-sue window).

• The company offers a severance agreement with a release of claims.

• You need to depose supervisors or subpoena payroll records.

• You face high-stakes damages (six figures or more) or career-long impact.

Louis Law Group’s Houston-licensed attorneys focus on Houston employee rights. They will evaluate your case, negotiate with your employer, handle agency filings, and—if necessary—litigate in Texas or federal courts. Their experience with local judges and juries gives employees a critical edge.

Local Resources & Next Steps

Texas Workforce Commission Civil Rights Division – File discrimination charges and payday claims. EEOC Houston District Office – Intake interviews by appointment or walk-in (call ahead). Houston Lawyer Referral Service (State Bar of Texas) – Low-cost initial consultations if you’re undecided. U.S. Department of Labor Wage and Hour Division – Unpaid overtime investigations.

Next Steps

• Gather and organize your documentation within 24 hours.

• Mark filing deadlines on your calendar.

• Seek medical or counseling help if harassment has affected your health; records strengthen damage claims.

• Contact an experienced attorney to discuss strategy, mediation, or litigation.

Take Action Now

If you believe your workplace rights have been violated, call Louis Law Group at 833-657-4812 for a free case evaluation and policy review. Protect your career, your reputation, and your future—starting today.

Disclaimer

This guide provides general information only and does not create an attorney-client relationship. Every case is unique; consult a licensed Texas employment lawyer about your specific situation.