Texas Employment Law Guide: Know Your Rights in Houston

11 min read

Introduction: Why Houston Employees Need to Understand Texas Employment Law

Houston is the economic engine of Texas, home to more than 3.1 million residents and a diverse workforce spanning energy, health care, aerospace, technology, and the world’s largest medical center. With opportunity comes risk—particularly when employers ignore state and federal workplace protections. From unpaid overtime on offshore rigs to discrimination in the city’s booming tech sector, employment disputes are common. Knowing your rights under Texas and federal law can be the difference between a quick resolution and prolonged financial hardship.

This guide breaks down the most frequent workplace disputes Houston employees face—wrongful termination, wage and hour violations, discrimination, retaliation, and harassment—while explaining the precise legal protections that apply in Texas. It also offers step-by-step instructions for documenting violations, filing administrative complaints, and determining when it’s time to enlist an experienced employment attorney.

Bottom line: Texas is an at-will employment state, but that does not give employers free rein to violate anti-discrimination laws, refuse overtime pay, or retaliate against whistleblowers. Read on to learn how to protect yourself, hold employers accountable, and recover compensation.

Understanding Your Employment Rights in Texas

1. At-Will Employment—But With Exceptions

Texas follows the doctrine of at-will employment, meaning employers can terminate employees for any lawful reason, or no reason, without prior notice. However, terminations that violate a statute or clear public policy are illegal. Examples include firing an employee for:

• Reporting safety violations to OSHA or the Texas Department of Insurance, Division of Workers’ Compensation.

• Taking protected leave under the Family and Medical Leave Act (FMLA).

• Refusing to commit an illegal act, a protection recognized in Sabine Pilot Service, Inc. v. Hauck, 687 S.W.2d 733 (Tex. 1985).

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), and Chapter 21 of the Texas Labor Code prohibit discrimination based on:

• Race, color, national origin

• Sex (including pregnancy, sexual orientation, and gender identity)

• Religion

• Age (40 or older)

• Disability

• Genetic information

Chapter 21 mirrors federal protections but often allows employees to pursue claims in state court once administrative remedies are exhausted.

3. Wage and Hour Rights—The FLSA and Texas Payday Law

The federal Fair Labor Standards Act (FLSA) guarantees non-exempt employees:

• At least $7.25 per hour in straight pay.

• Overtime at 1.5× the regular rate for hours over 40 in a workweek.

Texas’s Payday Law, enforced by the Texas Workforce Commission (TWC), requires employers to pay all wages owed on regularly scheduled paydays and prohibits unauthorized deductions.

4. Federal and State Whistleblower Protections

Employees who report fraud against the government, safety hazards, or labor violations may be shielded from retaliation under the federal False Claims Act, OSHA’s whistleblower provisions, and the Texas Whistleblower Act (for public-sector workers).

Common Employment Disputes in Texas

1. Wrongful Termination

Because Texas is at-will, wrongful termination claims typically hinge on a statutory violation such as discrimination or retaliation. Evidence may include:

• Proximity in time between the protected activity (e.g., reporting harassment) and termination.

• Comparative evidence showing different treatment of similarly situated coworkers.

• Derogatory comments by supervisors.

2. Retaliation for Whistleblowing

Texas employers cannot retaliate against employees for engaging in protected activity, such as filing an EEOC charge or reporting safety hazards to the Occupational Safety and Health Administration. Retaliation can include termination, demotion, pay cuts, or ostracism at work.

3. Denial of Overtime or Minimum Wage

Misclassification of employees as independent contractors or as overtime-exempt is rampant in Houston’s oil-and-gas and logistics industries. Under the FLSA, job titles do not control; actual duties and salary thresholds do. Employees may recover up to two years of back wages (three years for willful violations) plus an equal amount in liquidated damages and attorneys’ fees.

4. Workplace Discrimination & Harassment

Unlawful harassment, whether sexual or based on race, national origin, religion, or other protected traits, must be severe or pervasive enough to create a hostile work environment. Employers are strictly liable for supervisor harassment that results in tangible employment actions unless they can prove an affirmative defense—usually by showing that they exercised reasonable care to prevent harassment and the employee unreasonably failed to complain.

Texas Legal Protections & Regulatory Framework

1. Texas Labor Code & Administrative Enforcement

Chapter 61 (Texas Payday Law) and Chapter 62 (Minimum Wage) set out wage requirements, while Chapter 21 governs employment discrimination. The TWC handles wage claims, unemployment benefits, and state discrimination charges.

2. Filing Deadlines (Statutes of Limitation)

• Discrimination or retaliation: 180 days to file with TWC’s Civil Rights Division, or 300 days if you opt to file with the EEOC. After receiving a Right-to-Sue notice, you have 60 days (state court) or 90 days (federal court) to file a lawsuit.

• FLSA wage claims: Two years (standard) or three years for willful violations.

• Texas Payday Law claims: 180 days from the date wages were due.

• Workers’ compensation retaliation: Two years from the adverse action (Tex. Lab. Code § 451.001).

3. The Complaint Process

• Discrimination – File with either the EEOC Houston District Office or TWC Civil Rights Division. Dual-filing keeps both federal and state options open.

• Wage Claims – File a wage claim form with the TWC or sue directly in federal court under the FLSA.

• OSHA/Whistleblower – File within 30 days for most OSHA retaliation claims.

4. Court Precedents Shaping Texas Employment Law

• Nassar v. Univ. of Tex. Sw. Med. Ctr., 570 U.S. 338 (2013) – Set the but-for causation standard for retaliation cases.

• Helix Energy Sols. Grp., Inc. v. Hewitt, 598 U.S. 39 (2023) – Clarified overtime exemptions for highly compensated oil-and-gas workers, a major Houston industry.

• Waffle House, Inc. v. Williams, 313 S.W.3d 796 (Tex. 2010) – Confirmed the exclusivity of statutory discrimination remedies over common-law claims.

Steps to Take After an Employment Dispute

1. Document Everything

• Save emails, text messages, performance reviews, and any written warnings.

• Keep a contemporaneous journal noting dates, times, witnesses, and the substance of discriminatory remarks or unpaid hours.

• Download pay stubs, schedules, and timesheets before access is revoked.

2. Internal Complaint Procedures

Most Houston employers maintain anti-harassment or open-door policies. File a written complaint—often a prerequisite for holding the employer liable. Keep copies of everything you submit.

3. Seek Medical or Mental-Health Support

If workplace stress has caused anxiety, depression, or physical injuries, consult a healthcare provider. Medical records can corroborate emotional distress or FMLA needs.

4. File Administrative Charges Timely

Submit your EEOC or TWC charge in writing and under oath. Specify each discriminatory act and request make-whole relief. You may submit via mail, online portal, or in person at the EEOC’s Houston office.

5. Preserve Digital Evidence

Screenshot harassing messages on apps like Slack or Teams. Use a personal—not employer—email account for storing evidence. Spoliation (destroying evidence) can sink your case.

6. Avoid Social Media Pitfalls

What you post publicly may be discoverable in litigation. Refrain from discussing ongoing disputes or venting about supervisors on Facebook or TikTok.

7. Calculate Damages

Economic damages include lost wages and benefits. Non-economic damages—emotional distress—are capped under Texas Labor Code § 21.2585 (up to $300,000 for large employers). FLSA liquidated damages can effectively double back-pay.

When to Seek Legal Help in Texas

1. Complexity of Claims

Employment law entails overlapping statutes, short deadlines, and procedural traps. Missing a filing deadline—even by one day—can bar recovery. A lawyer can ensure timely filings, accurate calculations of damages, and strong evidentiary foundations.

2. Power Imbalance

Large employers in Houston, like multinational energy companies, often deploy in-house counsel to resist claims. Representing yourself could expose you to aggressive discovery tactics and lowball settlement offers. A knowledgeable attorney levels the playing field.

3. Contingency-Fee Representation

Most Texas employment attorneys accept cases on a contingency basis—no fees unless they win. Under fee-shifting statutes like the FLSA and Title VII, the employer may be required to cover your attorneys’ fees.

Louis Law Group Advantage: Our attorneys are licensed in Texas state and federal courts, including the Southern District of Texas. We have recovered millions for wronged employees across Harris County and offer free, confidential case evaluations.

Local Resources & Next Steps for Houston Employees

1. Government Agencies

EEOC Houston District Office – 1919 Smith St., Suite 600; Tel: 1-800-669-4000. Texas Workforce Commission – Wage Claim Department; Tel: 512-475-2670. Texas Labor Code – Full text of state statutes.

2. Non-Profit & Pro Bono Support

Houston Bar Association LegalLine – Free legal advice by phone, first and third Wednesday monthly.

• Lone Star Legal Aid – Free civil legal services for qualifying low-income residents.

3. Practical Next Steps

• Confirm your filing deadlines based on the type of claim.

• Gather documentation, including personnel files and pay records.

• Consult with an employment attorney to evaluate the strength of your case and potential damages.

Remember: Delay can forfeit your rights. 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.

Legal Disclaimer

The information in this guide is provided for educational purposes only and does not constitute legal advice. Reading this guide does not create an attorney–client relationship between you and Louis Law Group. Laws and regulations change frequently; for advice regarding your specific situation, consult a qualified Texas employment attorney.