Houston Workers’ Guide to Texas Employment Law Rights

Estimated read time: 13 min read

Introduction: Why Houston Employees Need to Understand Texas Employment Law

Houston is the energy capital of the world and the fourth-largest city in the United States. Its diverse workforce fuels everything from petrochemical plants in Baytown to cutting-edge medical research in the Texas Medical Center. Unfortunately, employment disputes can arise in any industry. Whether you are a refinery technician abruptly fired after reporting safety violations, a restaurant server denied overtime, or a tech professional facing racial harassment, understanding Texas employment law is critical to protecting your livelihood. Texas follows the doctrine of at-will employment, meaning an employer may terminate you for almost any reason, or no reason at all—unless that reason violates state or federal law. Knowing the exceptions, deadlines, and enforcement mechanisms can make the difference between walking away empty-handed and securing lost wages, reinstatement, or a settlement.

In this comprehensive guide tailored to Houston employee rights, we cover:

• Key protections under the Texas Labor Code, Title VII, the Fair Labor Standards Act (FLSA), and other statutes

• Common disputes—including wrongful termination, wage theft, discrimination, retaliation, and harassment—and how they typically play out in Texas courts

• A step-by-step plan if you believe your rights have been violated

Local resources such as the Texas Workforce Commission (TWC) and the Houston EEOC field office

• When and why you should consult a Texas-licensed employment attorney

Legal Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Employment law is complex and fact-specific; always consult a qualified attorney about your unique situation.

Understanding Your Employment Rights in Texas

1. At-Will Employment and Its Exceptions

Texas is an at-will state. Generally, employers can terminate employment at any time, for any reason, unless:

• The termination violates an express contract (written employment contract or collective bargaining agreement).

• The discharge contravenes federal or state statutes (e.g., discrimination, retaliation, protected leave).

• The firing violates public policy, such as dismissal for refusing to commit illegal acts (the Sabine Pilot exception).

2. Protected Classes and Anti-Discrimination Laws

Both Title VII of the Civil Rights Act (federal) and Chapter 21 of the Texas Labor Code prohibit employment discrimination based on:

• Race, color, or national origin

• Sex, pregnancy, sexual orientation, or gender identity

• Religion

• Disability (Americans with Disabilities Act and Chapter 21)

• Age (Age Discrimination in Employment Act protects workers 40+)

Employers with 15 or more employees are generally covered (20 or more for age discrimination under federal law). Houston’s economy includes many small businesses; if your employer falls below these thresholds, other remedies—such as breach of contract or tort claims—may still apply.

3. Wage and Hour Protections

The FLSA sets federal minimum wage ($7.25/hour) and overtime (time-and-a-half for hours beyond 40 in a workweek). Texas has adopted the federal minimum wage and defers to the FLSA for overtime. Key points:

• Exempt vs. non-exempt status: Job titles do not determine exemption; duties and salary do.

• Tip credits: Employers may pay $2.13/hour if tips bring pay to minimum wage.

• Payday Law: Under the Texas Payday Law, most wage claims (including final paychecks and commissions) must be filed with the TWC within 180 days of when wages became due.

4. Retaliation and Whistleblower Protections

Federal statutes (Title VII, FLSA, Family and Medical Leave Act) and Texas laws (Texas Whistleblower Act for public employees, Texas Labor Code § 21.055) prohibit retaliation for engaging in protected activities such as filing a complaint or reporting unlawful conduct.

Common Employment Disputes in Texas

1. Wrongful Termination

Because Texas is at-will, “wrongful termination” means you were fired illegally, such as for discriminatory reasons or for refusing to perform an illegal act. Example: In Mission Consolidated Indep. Sch. Dist. v. Garcia (Tex. 2014), the Texas Supreme Court clarified retaliation standards under the Texas Whistleblower Act.

2. Wage and Hour Violations

Common in Houston’s hospitality and oilfield services sectors. Examples:

• Misclassifying employees as independent contractors

• Withholding overtime for “day-rate” workers in energy services

• Illegal deductions from paychecks for uniforms or broken equipment

3. Discrimination and Harassment

Despite Houston’s diversity, EEOC data show thousands of discrimination charges annually in the Houston district. Patterns include:

• Racial slurs or disparate discipline of minority employees

• Gender discrimination in engineering and construction roles

• Hostile work environments based on sexual orientation (protected after Bostock v. Clayton County, 2020)

4. Retaliation for Protected Activity

Retaliation claims now surpass discrimination claims nationwide. Houston employees who report OSHA safety concerns in chemical plants or file wage complaints often face sudden demotions or terminations.

5. Family and Medical Leave Issues

Employers with 50+ employees must provide up to 12 weeks of unpaid, job-protected leave under the FMLA. Terminating or demoting an employee for requesting FMLA leave is illegal.

Texas Legal Protections & Key Procedures

1. Texas Workforce Commission (TWC) Process

The TWC Civil Rights Division investigates state discrimination claims. Steps:

• Deadline: File a Charge of Discrimination within 180 days of the adverse action.

• TWC dual-files with the EEOC if your employer meets federal thresholds.

• Investigation and mediation: The agency may convene fact-finding conferences or mediation.

• Right-to-Sue letter: If unresolved, you receive a notice enabling you to sue in Texas state court.

2. EEOC Process

The Houston District Office oversees Southeast Texas. Key points:

• Deadline: 300 days for most discrimination and retaliation claims in Texas (because the state has a fair-employment-practice agency).

• Online, mail, or in-person intake. You can request mediation early.

• After investigation, the EEOC may issue a cause finding or a Notice of Right to Sue.

• Statute of limitations: 90 days from the Notice of Right to Sue to file in federal court.

For more information, visit the EEOC Houston District Office.

3. Wage Claims & Lawsuits

Options include:

• Filing a wage claim with the TWC (limited to $20,000 unless minimum wage/overtime).

• FLSA lawsuit in federal court: 2-year statute of limitations (3 years if the violation is willful).

• Collective action: Co-workers can join, enhancing leverage.

4. Statutes of Limitations Snapshot

• Discrimination (TWC): 180 days

• Discrimination (EEOC): 300 days

• FLSA overtime/minimum wage: 2 years (3 years willful)

• Texas Payday Law: 180 days

• Workers’ compensation retaliation: 2 years

• Sabine Pilot wrongful discharge: 2 years

5. Licensing & Court Venues

Only attorneys licensed by the State Bar of Texas may give legal advice or represent you in Texas courts. Federal claims in Houston are generally filed in the Southern District of Texas, which has courthouses downtown and in Galveston.

Steps to Take After an Employment Dispute

Time is critical. Follow this action plan to preserve your Houston workplace rights:

Document Everything

• Save emails, texts, performance reviews, and schedules.

• Keep a timeline of incidents with dates, times, and witnesses.

• Request Your Personnel File (if available). Texas law does not require private employers to provide it, but many will upon written request.

File Internal Complaints

• Use your company’s HR or ethics hotline. This creates a paper trail and can trigger anti-retaliation protections.

Contact the Appropriate Agency

• Discrimination/harassment: TWC Civil Rights Division or EEOC within deadlines.

• Unpaid wages: TWC Wage Claim or federal DOL; consider FLSA lawsuit for larger claims.

Mind the Deadlines

• Mark 180- and 300-day cutoffs on your calendar.

• Note any contractual arbitration clauses affecting timelines.

Avoid Social Media Pitfalls

• Posts can be discoverable evidence. Discuss your case only with your lawyer.

Consult a Texas Employment Attorney Early

• A lawyer can evaluate claims, draft agency charges, and negotiate severance.

These steps boost credibility and bargaining power if your dispute escalates to litigation or settlement negotiations.

When to Seek Legal Help in Texas

You should reach out to an employment attorney when:

• You have been fired or demoted for discriminatory or retaliatory reasons.

• You are being pressured to sign a release or severance agreement.

• Your unpaid wages or overtime exceed a few thousand dollars—litigation may recover more than the TWC wage-claim limit.

• The harassment or retaliation continues despite internal complaints.

• You receive a Notice of Right to Sue—remember the 90-day clock.

Legal counsel can:

• Assess damages such as back pay, front pay, emotional distress, and punitive damages (if allowed).

• File Temporary Restraining Orders (TROs) to stop ongoing retaliation.

• Negotiate reinstatement or favorable separation terms.

How Louis Law Group Can Help Louis Law Group represents Houston workers in wage, discrimination, and retaliation claims. Our attorneys are licensed in Texas state and federal courts and have recovered millions for wronged employees.

Local Resources & Next Steps

Texas Workforce Commission – Employee Rights & Complaints State Bar of Texas Lawyer Referral Service Houston Bar Association LegalLine

• EEOC Houston District Office – 1919 Smith St., Suite 600, Houston, TX 77002 (Phone: 1-800-669-4000)

• United States Department of Labor Wage & Hour Division – Houston Area Offices

Next Steps

• Identify your claim type and applicable deadline.

• Gather documents and evidence.

• Call Louis Law Group for a free case evaluation.

CTA: 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 today.

This guide is informational and not a substitute for individualized legal advice.