Houston Texas Employment Law Guide: Protecting Your Rights

Estimated read time: 12 min read

Introduction: Why Knowing Your Rights Matters in Houston, Texas

Houston’s booming economy—energy, health care, logistics, tech, and a rapidly growing service sector—draws talent from across the globe. Yet even in a flourishing job market, workplace disputes are common. Wrongful termination, unpaid overtime, discrimination, retaliation, and harassment can derail careers and inflict financial and emotional harm. Understanding Texas employment law Houston employees face is therefore critical. Unlike some states, Texas follows the “at-will” doctrine: employers may terminate employees for any reason that is not illegal. This nuance creates confusion. Many Houstonians assume there is no recourse after a firing or wage dispute; in reality, federal statutes, the Texas Labor Code, and local ordinances provide meaningful protections.

This guide—written from a worker-first perspective—breaks down the laws, deadlines, and practical steps Houston employees can take to safeguard their rights. Whether you have been denied overtime pay, harassed for reporting safety violations, or suspect discriminatory motives in a layoff, the information below will help you make informed decisions. If questions remain, do not hesitate to contact Louis Law Group at 833-657-4812 for a free case evaluation.

Understanding Your Employment Rights in Texas

1. At-Will Employment—Limits & Exceptions

Texas is an at-will state. This means either the employer or employee may end the employment relationship at any time, with or without notice and for almost any reason. However, the following exceptions override at-will status:

• Public Policy Exception: Employers may not terminate employees for refusing to commit an illegal act or for exercising statutory rights (e.g., filing a workers’ compensation claim).

• Contractual Exception: Written employment contracts, union collective bargaining agreements, or employer policies that promise job security can limit at-will termination.

• Statutory Protections: Federal and state laws prohibit termination based on protected characteristics or retaliatory motives.

2. Protected Classes & Anti-Discrimination Laws

Under Chapter 21 of the Texas Labor Code and Title VII of the Civil Rights Act, employers with 15 or more employees may not discriminate on the basis of race, color, religion, sex (including pregnancy, sexual orientation, and gender identity), national origin, disability, or age (40+). Houston workers are also protected by the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA). Employees at companies with fewer than 15 workers may have options under alternative theories, such as breach of contract or common-law claims, though statutory anti-discrimination protections are limited in those smaller workplaces.

3. Wage & Hour Laws

The Fair Labor Standards Act (FLSA) sets the federal minimum wage at $7.25 per hour—Texas adopts this rate. Non-exempt employees must receive 1.5× their regular hourly rate for any hours worked beyond 40 in a workweek. Key nuances:

• Tip Credit: Employers may pay tipped workers $2.13 per hour if tips make up the difference to $7.25. When tips fall short, the employer must cover the gap.

• Overtime Exemptions: White-collar exemptions (executive, administrative, professional) require specific salary and duties tests.

• Recordkeeping: Employers must maintain accurate time and payroll records. Falsifying or failing to keep records can bolster employee claims.

The Texas Payday Law, administered by the Texas Workforce Commission (TWC), ensures employees receive earned wages on regular paydays and upon termination.

4. Federal Protections

Beyond Title VII and the FLSA, Houston workers benefit from federal laws such as:

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

• Occupational Safety and Health Act (OSHA): Safeguards against workplace hazards and retaliation for safety complaints.

• Sarbanes-Oxley Act & Dodd-Frank: Anti-retaliation provisions for whistleblowers in publicly traded companies.

Common Employment Disputes in Texas

1. Wrongful Termination

Wrongful termination arises when an employee is fired for an unlawful reason—such as discrimination, retaliation for reporting illegal conduct, or refusal to commit unlawful acts. Because Texas is at-will, proving wrongful discharge relies on showing the firing violated statute, public policy, or contractual terms.

2. Retaliation for Whistleblowing

Both federal laws (e.g., OSHA, Sarbanes-Oxley) and the Texas Whistleblower Act protect employees who report legal violations. Retaliation can include demotion, pay cuts, schedule changes, or termination. Statute of limitations for a Texas Whistleblower Act claim is generally 90 days from the alleged retaliatory action for public-sector employees.

3. Denial of Overtime Pay or Minimum Wage

Common wage violations include misclassifying non-exempt workers as exempt, off-the-clock work, and illegal tip pools. Employees may recover back wages plus “liquidated damages” (double damages) if the violation was willful. Limitations period: 2 years (3 years if willful) under the FLSA. Claims under the Texas Payday Law must be filed with TWC within 180 days after the wages became due.

4. Workplace Discrimination & Harassment

Discriminatory practices include unequal pay, failure to promote, and hostile work environment harassment. To preserve a claim, employees must file a Charge of Discrimination with the TWC Civil Rights Division or the Equal Employment Opportunity Commission (EEOC) within 180 days of the adverse action (extended to 300 days if filed only with EEOC but covered by state law). Houston has its own EEOC field office located at 1919 Smith Street, Suite 600.

5. Family & Medical Leave Violations

Interference with FMLA rights or retaliation for taking protected leave is actionable. Employees must file suit within two years (three if willful) of the violation.

Texas Legal Protections & Regulations

1. Texas Labor Code Chapters 21 & 451

Chapter 21 mirrors federal anti-discrimination statutes. Chapter 451 forbids retaliation for filing workers’ compensation claims. Employees prevailing under Chapter 451 may recover lost wages, mental anguish damages, and attorney’s fees.

2. Texas Workforce Commission (TWC) Complaint Process

• File a Charge: Submit a complaint online, by mail, or in person within 180 days. Both discrimination and wage claims can be filed.

• Investigation & Mediation: TWC investigates, may request documentation, and often offers voluntary mediation.

• Determination: TWC issues findings. If it fails to find cause, you may still sue in court after receiving a right-to-sue letter.

• Deadlines to Sue: Lawsuits must usually be filed within 60 days of receiving the right-to-sue notice and no later than two years after the filing of the charge.

3. EEOC Enforcement

Employees may “dual file” with both TWC and EEOC. The EEOC Houston District Office reviews federal law claims. Mediation is free and confidential. If unresolved, the EEOC may litigate or issue a Notice of Right to Sue, permitting private action.

4. Statutes of Limitations Snapshot

• Discrimination (TWC/EEOC): 180 days (300 days federal extended)

• FLSA Overtime/Minimum Wage: 2 years (3 years willful)

• Texas Payday Law: 180 days

• Workers’ Comp Retaliation (Ch. 451): 2 years

• Texas Whistleblower Act (public employees): 90 days

• FMLA: 2 years (3 years willful)

Missing a deadline can bar recovery. Speak with counsel early to protect your claim.

Steps to Take After an Employment Dispute

1. Document Everything

Courts and agencies rely on evidence. Start a timeline the day you suspect misconduct.

• Emails & Texts: Save relevant messages. Forward work emails to a personal account if company policy allows.

• Performance Reviews: Keep copies; employers often cite performance as justification.

• Witnesses: Note names of co-workers who observed events.

• Pay Records: Preserve timesheets, pay stubs, schedules.

2. Review Employer Policies

Handbooks often outline complaint procedures. Following internal steps can strengthen retaliation claims if the employer later punishes you for reporting.

3. File an Internal Complaint

Notify HR or a designated supervisor in writing. Clearly state the unlawful conduct and desired remedy (e.g., back pay, policy changes). Retain proof of submission.

4. Seek Medical or Psychological Support

If harassment or retaliation affects your health, consult a medical professional. Medical documentation supports claims for emotional distress damages.

5. Contact the TWC or EEOC

If internal measures fail or you fear immediate retaliation, file with TWC or EEOC promptly. Dual filing preserves both federal and state rights.

6. Preserve Digital Evidence

Screenshot discriminatory messages or scheduling changes. Backup to cloud storage. Deleting employer data after termination may violate company policy; focus on personal copies.

7. Avoid Hasty Resignations

Quitting may forfeit certain claims (e.g., unemployment benefits). Consult legal counsel first.

When to Seek Legal Help in Texas

While many agencies allow pro se filings, employment law is complex. You should consult an attorney when:

• You are offered a severance agreement or asked to sign a release.

• Your claim involves substantial lost wages or front pay.

• You face retaliation after reporting misconduct.

• Deadlines loom or evidence is being destroyed.

• You require accommodations under the ADA or pregnancy protections.

Texas attorneys must be licensed by the State Bar of Texas and, to advertise specialization, certified by the Texas Board of Legal Specialization. Louis Law Group’s employment attorneys meet these requirements and routinely practice in federal and state courts across Houston, Galveston, and the Southern District of Texas.

Local Resources & Next Steps

1. Government Agencies

Texas Workforce Commission: File wage claims, discrimination charges, and unemployment appeals. EEOC Houston District Office: Federal discrimination enforcement.

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

2. Non-Profit & Bar Association Assistance

Lone Star Legal Aid: Free civil legal services for low-income Texans.

• Houston Bar Association LegalLine: Free telephone consultation program, usually held twice monthly.

3. Checklists Before Calling a Lawyer

• Gather key documents (employment contract, handbook, pay stubs, emails).

• Prepare a concise timeline of events.

• Estimate economic losses (back pay, benefits, bonus).

• List any witnesses and their contact information.

• Note filing deadlines and prior communications with HR or agencies.

4. How Louis Law Group Can Help

Louis Law Group focuses on employee advocacy. We investigate claims, negotiate severance, and pursue litigation when employers refuse fair resolution. Our attorneys have recovered significant settlements for Houston workers in oil & gas, health care, and hospitality. We work on contingency in many wage and discrimination cases—no fee unless we win.

If you believe your workplace rights have been violated, call 833-657-4812 for a free case evaluation and policy review today.

Legal Disclaimer

This guide is for educational purposes only and does not constitute legal advice. Reading it does not create an attorney-client relationship. Laws change, and your situation may involve factors not discussed here. Consult a qualified Texas employment attorney for advice specific to your circumstances.