Texas Employment Law Houston Guide: Protecting Your Rights

Estimated read time: 12 min read

Introduction: Why Houston Employees Need to Know Their Rights

Houston is the energy capital of the world and home to more than 3 million residents who work in diverse industries—from oil and gas to healthcare, aerospace, and a booming tech scene. While these opportunities create economic growth, they also give rise to workplace disputes such as wrongful termination, unpaid wages, discrimination, retaliation, and harassment. Knowing your rights under Texas employment law and relevant federal regulations can make the difference between a swift resolution and months of financial or emotional stress.

This comprehensive guide, written from a slight pro-employee perspective, explains the legal protections available to Houston workers and offers actionable steps you can take if your employer violates your rights. We reference the Texas Workforce Commission (TWC), the Equal Employment Opportunity Commission (EEOC), and key sections of the Texas Labor Code to ensure the information is accurate, up-to-date, and Houston-specific. If you believe your rights have been violated, call Louis Law Group at 833-657-4812 for a free case evaluation.

Understanding Your Employment Rights in Texas

1. Texas Is an At-Will Employment State—With Important Exceptions

Under at-will employment, either the employer or employee may end the working relationship at any time, with or without notice, for almost any reason. However, several statutory and common-law exceptions protect you:

• Discrimination: Employers cannot fire or otherwise retaliate against employees because of race, color, national origin, sex (including pregnancy, sexual orientation, and gender identity), religion, disability, age (40+), or genetic information under Title VII, the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA), and Texas Labor Code Chapter 21.
• Retaliation Protections: Both federal and Texas law prohibit retaliation against employees who report unlawful conduct or participate in investigations.
• Public Policy Exception: Texas courts recognize a narrow wrongful-termination claim if an employee is fired for refusing to commit an illegal act.
• Employment Contracts & Collective Bargaining Agreements: Written contracts and union agreements can override at-will status.

2. Wage and Hour Rights

Texas adopts the federal minimum wage ($7.25 per hour) and overtime rules under the Fair Labor Standards Act (FLSA). Non-exempt employees must receive overtime pay at 1.5 times their regular rate for hours worked beyond 40 in a workweek.

• Common Violations: Off-the-clock work, misclassification as exempt or independent contractors, illegal tip pools, and failure to pay overtime.
• Statute of Limitations: Two years for standard FLSA claims and three years for willful violations.

3. Federal Protections That Apply in Texas

• Family and Medical Leave Act (FMLA): Up to 12 weeks of job-protected, unpaid leave for serious health conditions, childbirth, or caregiving.
• Uniformed Services Employment and Reemployment Rights Act (USERRA): Safeguards military service members’ employment status.
• Occupational Safety and Health Act (OSHA): Protects employees who report unsafe working conditions.

Common Employment Disputes in Houston, Texas

1. Wrongful Termination

Because Texas is at-will, wrongful-termination claims usually stem from violations of anti-discrimination statutes, retaliation, public policy, or contractual guarantees. For example, firing an employee for refusing to commit fraud in oil-production reports could violate public policy and lead to damages for lost wages and emotional distress.

2. Workplace Discrimination

Discrimination can occur during hiring, promotions, pay decisions, and termination. Houston’s diverse workforce often faces issues like age bias in the energy sector or gender discrimination in male-dominated construction fields. Under Texas Labor Code § 21.051 and Title VII, employees have 180 days to file a discrimination complaint with the TWC’s Civil Rights Division and 300 days to file with the EEOC.

3. Retaliation for Whistleblowing

Reporting safety violations to OSHA or fraud under the Sarbanes-Oxley Act can trigger illegal employer retaliation—such as demotion, termination, or unjustified negative evaluations. Texas Labor Code Chapter 451 also protects employees who file workers’ compensation claims.

4. Wage and Hour Violations

Common wage violations in Houston’s restaurant, construction, and healthcare industries include unpaid overtime, improper tip deductions, and failure to provide final paychecks within six calendar days after discharge (Texas Payday Law).

5. Workplace Harassment

Harassment based on protected characteristics is illegal when it creates a hostile environment. A single severe incident—such as a physical assault—or repeated derogatory comments can satisfy this standard. Employers are liable if they knew or should have known about the harassment and failed to act.

Texas Legal Protections & Regulations

1. Texas Labor Code Highlights

• Chapter 21: Mirrors federal civil rights laws and expands anti-retaliation protections.
• Chapter 61 (Texas Payday Law): Governs timely payment of wages and allows employees to file wage claims with the TWC.
• Chapter 451: Protects workers who file workers’ compensation claims from retaliation.

2. Filing Employment Complaints in Texas

Discrimination & Harassment: File first with the TWC Civil Rights Division or the EEOC. The two agencies have a work-sharing agreement, so dual-filing is automatic if the complaint is timely.

• Deadline: 180 days from the discriminatory act to preserve state claims; 300 days for federal claims.

Wage Claims: Submit a wage claim form to the Texas Workforce Commission Wage and Hour Division within 180 days of when wages were due. - OSHA Complaints: File within 30 days of retaliation.

• FMLA Claims: File with the U.S. Department of Labor within two years of the violation.

3. EEOC & TWC Investigation Process

Once a charge is filed, the agency notifies the employer, investigates, and may request mediation. If no resolution is reached, the agency issues a Right-to-Sue letter. Employees then have 90 days to file a civil lawsuit in state or federal court.

4. Important Court Precedents in Texas

• Montenegro v. Ocwen Loan Servicing, LLC (S.D. Tex. 2021): Clarified that remote workers can establish a hostile-work-environment claim even without face-to-face interactions.
• Safeshred, Inc. v. Martinez, 365 S.W.3d 655 (Tex. 2012): Confirmed that employees fired for refusing to commit illegal acts may sue for exemplary damages.
• Mission Consolidated ISD v. Garcia, 372 S.W.3d 629 (Tex. 2012): Expanded retaliation protections under Chapter 21 beyond discriminatory terminations.

Steps to Take After an Employment Dispute

1. Document Everything

• Maintain copies of emails, performance reviews, text messages, timesheets, and pay stubs.
• Create a timeline of events with dates, witnesses, and description of wrongdoing.
• Save voicemails and photos of any physical evidence—e.g., offensive posters.

2. Review Company Policies

Obtain your employee handbook, contract, or collective bargaining agreement. Many employers require internal complaint procedures before going external. Document each step you take.

3. File Internal Complaints

Submit a written complaint to HR or your supervisor, specifying the unlawful conduct and requesting corrective action. Send it via email or certified mail to create a paper trail.

4. Contact the Appropriate Government Agency

EEOC Houston District Office: Handles discrimination, harassment, and retaliation charges. Texas Workforce Commission: Manages wage claims, unemployment benefits, and discrimination complaints under state law.

5. Preserve Evidence & Avoid Retaliation

Do not delete emails or social media posts; they may serve as evidence. If you suspect retaliation (e.g., demotion, reduced hours), document new incidents immediately.

6. Meet Statutory Deadlines

Mark critical dates on your calendar—180-day or 300-day filing windows close quickly. Courts dismiss otherwise valid claims if the statute of limitations has expired.

7. Consult an Employment Attorney

A consultation ensures you understand the strength of your claim, potential damages, and procedural requirements. If you retain an attorney, they will handle communications with the employer, agencies, and courts.

When to Seek Legal Help in Texas

While some disputes resolve through internal HR channels, you should promptly consult a Houston employment attorney if:

• You face termination, demotion, or lost wages for asserting your rights.
• The employer requests you to sign a severance agreement or release.
• Your complaint involves complex issues such as whistleblower protections, non-compete clauses, or class/collective actions.
• The agency investigation stalls or issues a Right-to-Sue notice.

The Louis Law Group is licensed in Texas, familiar with local courts such as the U.S. District Court for the Southern District of Texas, and has handled disputes in industries ranging from petrochemical plants along the Ship Channel to tech start-ups in Midtown. Our team navigates federal and state forums, negotiates settlements, and litigates aggressively when necessary.

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.

Local Resources & Next Steps

Texas Workforce Commission (TWC): File wage claims, discrimination complaints, or apply for unemployment benefits. Visit TWC online or call 800-832-9394. - EEOC Houston District Office: Located at 1919 Smith Street, Suite 600, Houston, TX 77002. Appointment line: 800-669-4000. Houston Bar Association (HBA) Lawyer Referral Service: Provides 30-minute consultations at reduced fees for qualifying individuals. Get referral information. - Lone Star Legal Aid: Free civil legal services for low-income Texans. Offices in downtown Houston.

Checklist for Houston Employees

• Gather evidence and review your employee handbook.
• File an internal complaint in writing.
• Note the 180-day (state) and 300-day (federal) deadlines for discrimination claims.
• Submit wage claims to the TWC within 180 days of nonpayment.
• Consult an experienced Texas employment attorney before signing any documents.

Disclaimer

The information in this guide is for educational purposes only and does not constitute legal advice. Employment law is complex and fact-specific; you should consult a qualified attorney to discuss your individual circumstances. Reading this guide or contacting Louis Law Group does not create an attorney-client relationship.

Ready to protect your rights? Call Louis Law Group at 833-657-4812 for a free, confidential case evaluation today.