Minimum Wage & Employment Law Guide for Dallas, Texas

Introduction: Why Dallas Workers Need a Local Employment Law Guide

Dallas, Texas is home to more than 1.3 million residents and serves as a regional hub for energy, technology, finance, health care, and logistics. Whether you work at a Fortune 500 headquarters in Uptown, a distribution center in southern Dallas County, or a restaurant in Deep Ellum, understanding how Texas employment law and federal regulations protect (and limit) your workplace rights can be the difference between fair pay and exploitation. Texas follows the at-will employment doctrine, which generally lets employers terminate workers for almost any legal reason—or no reason at all. Yet at-will does not allow firing someone for an illegal reason such as race, sex, or retaliation for reporting wage theft.

This comprehensive guide focuses on the practical realities Dallas employees face every day, from the statewide minimum wage of $7.25 per hour to frequent overtime misclassification in the region’s booming logistics sector. We cite only authoritative sources, including the Texas Labor Code, the Fair Labor Standards Act (FLSA), Title VII of the Civil Rights Act, and guidance from the Texas Workforce Commission (TWC) and the Equal Employment Opportunity Commission (EEOC). Where possible, we add Dallas-specific context—such as local EEOC field offices and the prevalence of large corporate campuses in the DFW Metroplex—to help you act quickly if your rights are violated.

Understanding Your Employment Rights in Texas

1. At-Will Employment—And Its Exceptions

Texas Labor Code § 001 establishes Texas as an at-will state, meaning either the employee or employer may end the relationship at any time, with or without cause, as long as the reason is not illegal. Important exceptions include:

• Statutory Protections: Federal laws such as Title VII (42 U.S.C. § 2000e) and the Americans with Disabilities Act (ADA) prohibit termination based on protected characteristics.

• Public Policy Exception: The Texas Supreme Court, in Sabine Pilot Service, Inc. v. Hauck, 687 S.W.2d 733 (Tex. 1985), recognized a narrow exception: employers cannot fire workers solely for refusing to engage in an illegal act.

• Contractual Exceptions: A written employment contract or a collective bargaining agreement can override at-will status.

2. Minimum Wage & Overtime Rights

The FLSA sets a federal minimum wage of $7.25 per hour. Texas Labor Code § 62.051 adopts this rate as the Texas minimum wage. Key points for Dallas employees:

• Overtime: Hourly (non-exempt) workers must receive 1.5 times their regular rate for hours worked beyond 40 in a workweek.

• Tip Credit: Employers may pay tipped employees $2.13/hour if tips bring hourly earnings to at least $7.25.

• Salary Misclassification: White-collar exemptions require meeting both duties and salary tests. Many tech startups along Dallas’s “Telecom Corridor” misclassify developers and project managers, denying overtime owed.

3. Anti-Discrimination & Harassment Protections

Title VII and the Texas Commission on Human Rights Act (TCHRA), Texas Labor Code Chapter 21, bar discrimination based on race, color, religion, sex (including pregnancy, sexual orientation, and gender identity per Bostock v. Clayton County), national origin, age (40+), disability, and genetic information. Harassment becomes unlawful when it creates a hostile work environment or leads to tangible employment actions.

4. Retaliation & Whistleblower Rights

Both federal and Texas statutes protect employees from retaliation for engaging in protected activities, such as filing an EEOC charge, reporting safety violations to OSHA, or participating in wage theft investigations. Under the FLSA, retaliation claims carry a two-year statute of limitations (three years if the violation is willful).

Common Employment Law Violations in Texas

1. Wage Theft & Off-the-Clock Work

Dallas’s service industry often relies on shift managers who delete recorded hours to cut labor costs. Such practices violate FLSA record-keeping rules (29 U.S.C. § 211(c)). Recoverable damages include back pay, liquidated damages equal to unpaid wages, and attorneys’ fees.

2. Independent Contractor Misclassification

The gig economy thrives in North Texas, but the TWC applies a 20-factor test (mirroring IRS guidance) to distinguish employees from contractors. Misclassification deprives workers of overtime, workers’ compensation, and unemployment benefits.

3. Unlawful Deductions

Employers cannot deduct for uniforms, cash shortages, or property damage unless the employee agrees in writing and in advance, per Texas Labor Code § 61.018.

4. Discriminatory Hiring & Promotion

Major corporate employers along the Dallas North Tollway have faced EEOC charges for favoring younger candidates and failing to accommodate disabilities. A 2021 settlement with a Plano-based retailer resulted in $5.5 million paid to workers over age 40 (EEOC v. Conn’s HomePlus, N.D. Tex., 2021).

5. Wrongful Termination for Protected Leave

The Family and Medical Leave Act (FMLA) grants eligible employees up to 12 weeks of unpaid, job-protected leave. Firing an employee for requesting FMLA is a common basis for texas wrongful termination suits filed in the U.S. District Court for the Northern District of Texas—Dallas Division.

Texas Legal Protections & Employment Laws

1. Key Statutes Every Dallas Worker Should Know

• Texas Labor Code, Chapter 62: Governs minimum wage.

• Texas Payday Law (Chapter 61): Ensures timely payment and restricts deductions.

• Texas Labor Code, Chapter 21: Mirrors Title VII, covering discrimination and retaliation.

• Fair Labor Standards Act (29 U.S.C. § 201 et seq.): Federal floor for minimum wage and overtime.

• Occupational Safety and Health Act (OSHA): Requires a safe workplace; retaliation for reporting hazards is illegal.

2. Statutes of Limitations for Common Claims

• Title VII / TCHRA Discrimination: 300 days from the adverse action to file with EEOC/TWC when state law covers the claim; otherwise 180 days.

• FLSA Wage Claims: 2 years (3 if willful).

• Texas Payday Law Claims: 180 days with TWC.

• Sabine Pilot Wrongful Termination: 2 years in Texas courts.

3. Equal Employment Opportunity Commission (EEOC) & Texas Workforce Commission (TWC)

Dallas residents may dual-file a charge at the EEOC Dallas District Office (207 S. Houston St., Suite 600, Dallas, TX 75202) or any TWC Civil Rights Division intake location. Dual filing preserves state and federal rights without duplicate paperwork.

4. Attorney Licensing in Texas

Employment attorneys must be licensed by the State Bar of Texas and comply with Texas Disciplinary Rules of Professional Conduct. Contingency fee agreements must be in writing and signed by the client.

Steps to Take After Workplace Violations

1. Document Everything

Maintain copies of time sheets, pay stubs, emails, and witness contact information. Under the National Labor Relations Act, discussing wages with coworkers is protected concerted activity.

2. Follow Internal Complaint Procedures

Many Dallas employers—especially hospitals affiliated with Baylor Scott & White—require reporting discrimination to HR within a specific window. Timely complaints can demonstrate the employer’s knowledge and support retaliation claims.

3. File an Administrative Charge

Discrimination & Harassment: File with the EEOC or TWC Civil Rights Division within the statutory deadlines. The agencies may investigate, mediate, or issue a Notice of Right to Sue.

Wage Claims: Submit a wage claim form to the TWC within 180 days of the violation. Alternatively, you may sue directly under the FLSA in federal court.

4. Consider Mediation

The Northern District of Texas requires early mediation in many employment cases. Settlements can include back pay, front pay, policy changes, and attorneys’ fees.

5. File a Lawsuit if Necessary

After exhausting administrative remedies (or immediately for FLSA), a lawsuit may be filed in state court (Dallas County) or federal court (Northern District of Texas). Consult an employment lawyer dallas texas for venue strategy, jury selection considerations, and possible removal to federal court.

When to Seek Legal Help in Texas

1. Red Flags That Require Immediate Counsel

• Termination shortly after reporting discrimination or requesting reasonable accommodation.

• Unpaid overtime exceeding $5,000 — complex damages calculations often require expert testimony.

• Class or collective actions where numerous coworkers have similar wage claims.

• Employer demands that you sign a broad release or non-compete without adequate consideration.

2. Choosing the Right Attorney

Verify State Bar standing, years of practice, trial experience, and whether the lawyer regularly represents employees versus employers. Many plaintiff-side firms in Dallas operate on contingency—no fees unless you recover.

3. Fee Shifting & Costs

Statutes like Title VII and the FLSA allow prevailing employees to recover attorneys’ fees, making it financially feasible to pursue meritorious claims.

Local Resources & Next Steps

EEOC Dallas District Office – file or follow up on discrimination charges.

Texas Workforce Commission – wage claims, unemployment benefits, and labor law information.

Texas Statutes Online – full text of the Texas Labor Code.

U.S. Department of Labor Wage & Hour Division – guidance on FLSA exemptions and overtime.

Understanding dallas workplace rights can feel daunting, but armed with accurate information and timely action, employees can recover wages, protect their careers, and make Dallas workplaces fairer for everyone.

Legal Disclaimer: This article provides general information for educational purposes only and is not legal advice. Reading it does not create an attorney-client relationship. Consult a licensed Texas employment attorney for advice regarding your specific situation.

If you experienced workplace discrimination, wrongful termination, or wage violations, Contact Louis Law Group today for a free consultation. Call 833-657-4812 or submit a free case evaluation form or employment consultation.