Texas Employment Law Guide for Houston Workers

Estimated read time: 11 min

Introduction: Why Houston Employees Must Know Their Rights

Houston’s dynamic labor market—anchored by energy, healthcare, aerospace, and technology—provides thousands of jobs but also generates complex workplace disputes. Whether you are a refinery technician, nurse, software developer, or front-line service worker, understanding Texas employment law Houston standards is critical. Common conflicts include:

• Wrongful termination following protected activity

• Unpaid overtime or minimum-wage violations

• Discrimination based on race, sex, disability, national origin, age, or religion

• Hostile work environment and harassment

• Retaliation for whistleblowing or filing internal complaints

Although Texas is an at-will state, federal statutes such as the Fair Labor Standards Act (FLSA) and Title VII, plus state protections in the Texas Labor Code, limit an employer’s discretion to fire or underpay you. This guide distills the most important rules, deadlines, and practical steps—written from the employee’s perspective—so you can make informed choices and, if necessary, escalate matters to the Texas Workforce Commission (TWC), the Equal Employment Opportunity Commission (EEOC), or experienced counsel.

Understanding Your Employment Rights in Texas

1. At-Will Employment—But Not Without Limits

Texas follows the at-will doctrine: an employer may terminate employment for any reason or no reason, unless the reason is illegal. Illegal reasons include firing someone because of a protected characteristic or in retaliation for protected activity. Contractual exceptions (offer letters, collective bargaining agreements, or company policies that create implied contracts) can also override at-will status.

2. Protected Classes Under Federal and State Law

Title VII of the Civil Rights Act, the Age Discrimination in Employment Act (ADEA), the Americans with Disabilities Act (ADA), the Pregnancy Discrimination Act (PDA), and the Genetic Information Nondiscrimination Act (GINA) establish federal protections that apply to most Texas employers with 15+ employees (20+ for age claims). Chapter 21 of the Texas Labor Code mirrors these rights and extends them to smaller employers in certain municipalities, including Houston’s local anti-discrimination ordinances.

3. Wage and Hour Protections

The federal FLSA sets the minimum wage ($7.25/hour) and overtime requirements (time-and-a-half for hours above 40 in a workweek). Texas does not impose a higher state minimum, so federal rules control. Exemptions for executives, professionals, and certain IT workers apply only when salary thresholds and duty tests are met. Tipped employees must still receive at least $7.25/hour when tips are included.

4. Retaliation Safeguards

Retaliation occurs when an employer punishes an employee for engaging in protected activity, such as:

• Filing a discrimination charge with the EEOC or TWC

• Participating in an internal investigation

• Whistleblowing under the Sarbanes-Oxley Act or Texas Whistleblower Act (public employees)

Retaliation claims often succeed even where the underlying discrimination claim fails, provided the employee had a reasonable belief of misconduct.

Common Employment Disputes in Texas

Wrongful Termination

In Texas, a termination becomes "wrongful" when it violates a statutory or contractual protection. Examples include:

• Firing after the employee requests FMLA leave

• Termination motivated by race or gender animus

• Letting go of an employee who reported safety violations to OSHA

Unpaid Wages and Overtime

The U.S. Department of Labor (DOL) recovered more than $13 million in back wages for Texas workers in 2023 alone. Common violations include:

• Misclassifying non-exempt employees as exempt

• Automatic meal-break deductions without relief time

• Off-the-clock work before or after scheduled shifts

Workplace Discrimination

Disparate treatment, unequal pay, or exclusion from projects based on protected characteristics remains pervasive. Houston’s growing immigrant population also sees national-origin discrimination claims. Successful cases often hinge on comparators—evidence that similarly situated employees outside the protected class were treated more favorably.

Harassment and Hostile Work Environment

Harassment is unlawful when it is severe or pervasive enough to create a hostile environment. Employers are liable if they knew—or should have known—about harassment and failed to act. Employees must generally follow internal complaint procedures first to preserve employer liability under the Faragher-Ellerth defense framework.

Retaliation

The EEOC reports that retaliation is the most frequent basis of all charges filed in Texas. Adverse actions include demotions, negative reviews, salary cuts, or exclusion from meetings after protected activity.

Texas Legal Protections & Regulations

Texas Workforce Commission (TWC) Complaint Process

The Civil Rights Division of the Texas Workforce Commission (TWC) investigates discrimination and retaliation claims under Chapter 21. Key deadlines:

• 180 days from the discriminatory act to file a TWC charge (with limited tolling exceptions).

• TWC must issue a right-to-sue letter or dismiss after 180 days unless you request earlier notice.

• You have 60 days from the right-to-sue letter to file in state court.

EEOC Dual Filing

Because TWC is a "Fair Employment Practices Agency," charges filed with TWC within 300 days of the violation are automatically dual-filed with EEOC. If you bypass TWC, you can file directly with the EEOC Houston District Office. EEOC deadlines:

• 300 days from the discriminatory act for Title VII, ADA, ADEA, PDA, and GINA claims.

• After an EEOC right-to-sue letter, you have 90 days to file in federal court.

Wage Claims

Texas Labor Code §61 allows employees to file a wage claim with TWC within 180 days of the wage due date. FLSA lawsuits carry a two-year statute of limitations (three years for willful violations).

Whistleblower Retaliation

Public employees have 90 days to file suit under the Texas Whistleblower Act. Private-sector whistleblowers may use federal laws (e.g., SOX) or common-law Sabine Pilot claims (refusal to commit an illegal act) with a two-year limitations period.

Steps to Take After an Employment Dispute

1. Document Everything

Immediately preserve emails, text messages, voicemails, performance reviews, and pay stubs. Keep a contemporaneous journal stating dates, times, participants, and any witnesses.

2. Review Company Policies

Houston-area employers often publish anti-harassment, grievance, or arbitration procedures in employee handbooks. Following them can protect your claim and credibility.

3. File Internal Complaints Promptly

Notify HR or a designated manager in writing. Retain proof of delivery (email read receipt, certified mail). Under Faragher-Ellerth, failure to use internal channels may reduce damages in harassment cases.

4. Seek Medical or Financial Records if Applicable

If discrimination or retaliation has harmed your health or finances, obtain medical evaluations or bank statements that connect the adverse action to losses.

5. Contact Government Agencies

• For wage disputes, file a wage claim with TWC Civil Wage and Labor Investigations.

• For discrimination or retaliation, submit an Intake Questionnaire (Form 5) to EEOC or TWC within the statutory deadlines.

• Request "right-to-sue" if agency mediation fails or you need to preserve your litigation option.

6. Avoid Destructive Actions

Do not delete company data, disparage your employer online, or remove proprietary documents. Such actions can undermine your legal standing.

7. Consult an Attorney Early

A lawyer can calculate filing deadlines, draft agency complaints, negotiate severance, and ensure preservation of electronic evidence, including forensic imaging when necessary.

When to Seek Legal Help in Texas

You should speak with a qualified employment attorney when:

• Your deadline is approaching and the agency process feels overwhelming.

• The employer is pushing a severance agreement with a broad release of claims.

• You face complex issues like non-compete clauses, trade secrets, or arbitration agreements.

Texas attorneys must be licensed by the State Bar of Texas and maintain malpractice insurance or disclose lack thereof. Verify your lawyer’s status using the State Bar’s website.

Louis Law Group focuses on employee-side matters, including wrongful termination, overtime recovery, discrimination, and retaliation. Our Houston team combines local knowledge with statewide reach to maximize your leverage during negotiation or litigation.

Local Resources & Next Steps

Texas Workforce Commission (TWC) – File wage or discrimination claims, access unemployment benefits. EEOC Houston District Office – Schedule intake, mediation, or document submission. Houston Volunteer Lawyers – Pro bono and low-cost representation for qualifying workers.

• State Bar of Texas Lawyer Referral Service – Confirm attorney licensure and discipline history.

Next Steps: Confirm your deadline, gather documentation, and evaluate whether self-representation or counsel best suits your needs. If you want a seasoned advocate to shoulder the burden, act promptly—the clock is ticking the moment adverse action occurs.

CTA: If you believe your workplace rights have been violated, don’t wait. Call Louis Law Group today at 833-657-4812 for a free case evaluation and policy review.

Disclaimer: This guide provides general information for educational purposes and is not legal advice. Reading or relying on this content does not create an attorney-client relationship. Always consult a licensed Texas employment attorney about your specific situation.