Texas Minimum Wage & Employment Law Guide – Houston, Texas

Introduction: Why Houston Workers Need to Understand Texas Employment Law

Houston, Texas is home to more than 2.3 million residents and one of the nation’s most diverse economies. Professionals in energy, health-care, aerospace, technology, education, and hospitality fill the offices, rigs, labs, and restaurants that keep the city running. Whether you clock in at a refinery along the Ship Channel, a tech start-up in Midtown, or a medical center in the Texas Medical Center district, knowing your houston workplace rights is critical. Texas follows the “at-will” employment doctrine, which generally allows employers to terminate employees for any non-illegal reason. Yet federal and state statutes—including the Texas Labor Code, the Fair Labor Standards Act (FLSA), and Title VII of the Civil Rights Act—place powerful limits on that freedom. This guide unpacks the rules that matter most to employees, slightly favoring the worker’s perspective while remaining strictly factual and based on authoritative sources.

Our focus topic is the Texas minimum wage law, but we will also cover discrimination, retaliation, wrongful termination, leave rights, and the key procedures for filing complaints with the Equal Employment Opportunity Commission (EEOC) and the Texas Workforce Commission (TWC). If you ever need an employment lawyer houston texas workers can rely on, understanding these fundamentals will help you spot red flags early and protect your livelihood.

Understanding Your Employment Rights in Texas

1. The Texas Minimum Wage Act (Texas Labor Code Chapter 62)

Texas’s minimum wage tracks the federal minimum wage, currently $7.25 per hour. Employers must pay at least that rate unless a specific exemption applies. Key features:

• Tipped employees: May be paid $2.13 per hour in direct wages if tips make up the difference to $7.25, as permitted under 29 U.S.C. § 203(m).

• Training wage: Workers under 20 may earn $4.25 per hour for the first 90 calendar days of employment, mirroring FLSA rules.

• Record-keeping: Employers must keep payroll records for at least three years (Texas Labor Code § 62.017).

• Overtime: While the Texas statute is silent, the FLSA mandates time-and-a-half for hours worked over 40 in a workweek.

2. Houston-Specific Wage Issues

Houston’s cost of living is lower than some major U.S. cities, but rental and transportation costs have risen in recent years. Although the City of Houston lacks authority to set its own minimum wage due to state pre-emption (Texas Labor Code § 62.0515), many local employers voluntarily pay more to stay competitive in the oil & gas and tech labor markets. Additionally, the City has adopted a living wage policy for city contractors, requiring wages above the state minimum—helpful for workers on municipal contracts.

3. At-Will Employment and Its Exceptions

Texas is an at-will employment state, meaning either party may terminate employment for any lawful reason or no reason at all. Notable exceptions:

• Discrimination: Termination based on race, color, national origin, sex (including pregnancy and sexual orientation), religion, disability, age (40+), or genetic information is illegal under Title VII, the Age Discrimination in Employment Act (ADEA), the Americans with Disabilities Act (ADA), and the Texas Commission on Human Rights Act (Texas Labor Code Chapter 21).

• Retaliation: Firing an employee for filing a wage claim or discrimination complaint violates Texas Labor Code § 21.055 and 29 U.S.C. § 215(a)(3).

• Refusal to commit an illegal act: Under the Sabine Pilot doctrine (Sabine Pilot Serv., Inc. v. Hauck, 687 S.W.2d 733, Tex. 1985), an employee fired solely for refusing to perform an illegal act has a wrongful termination claim.

• Public policy and statutes: Examples include jury-duty leave (Tex. Civ. Prac. & Rem. Code § 122.001) and military service leave (Tex. Gov’t Code § 437.204).

Common Employment Law Violations in Texas

1. Minimum Wage & Overtime Violations

Despite clear statutory requirements, wage theft remains common. Oilfield workers on 24-hour call, restaurant staff paid off-the-clock, and hospital technicians misclassified as “exempt” employees frequently miss out on overtime pay. The U.S. Department of Labor recovered more than $6.4 million in back wages for Texas workers in FY2022 alone.

2. Misclassification as Independent Contractors

Some Houston trucking, construction, and gig-economy employers mislabel employees to avoid payroll taxes and overtime obligations. The economic-realities test used by federal courts examines factors such as control, opportunity for profit, and permanence of the relationship (see Tony and Susan Alamo Found. v. Sec’y of Labor, 471 U.S. 290 (1985)).

3. Discrimination and Harassment

EEOC data show Texas regularly ranks in the top three states for discrimination charges. In Houston’s petrochemical and tech industries, gender disparities and racial harassment complaints continue to surface, emphasizing the need for vigilant monitoring and swift action by employers.

4. Retaliation After Whistleblowing

Reporting safety violations to the Occupational Safety & Health Administration (OSHA) or wage violations to the TWC can trigger unlawful retaliation. The FLSA and Texas Labor Code both forbid adverse actions for engaging in protected activity.

Texas Legal Protections & Employment Laws

1. Key Statutes Every Houston Worker Should Know

• Texas Commission on Human Rights Act (Tex. Labor Code §§ 21.001–21.556) – Mirrors Title VII, ADA, and ADEA protections; covers employers with 15+ employees.

Fair Labor Standards Act (U.S. Department of Labor – FLSA Overview) – Establishes federal minimum wage, overtime, and youth labor rules.

• Family and Medical Leave Act (FMLA) – Provides up to 12 weeks of unpaid leave for serious health conditions, childbirth, or military exigency (50+ employee coverage).

• Uniformed Services Employment and Reemployment Rights Act (USERRA) – Protects service members’ civilian jobs.

• Texas Payday Law (Tex. Labor Code Chapter 61) – Governs timely wage payments; enforced by the TWC.

2. Statutes of Limitations

• Minimum wage/overtime claims (FLSA): 2 years, or 3 years if willful (29 U.S.C. § 255(a)).

• Texas Payday Law claims: 180 days from the date wages were due (Tex. Labor Code § 61.051).

• Discrimination charges: 300 days (federal EEOC) or 180 days (TWC Civil Rights Division) from the unlawful act (42 U.S.C. § 2000e-5(e)(1); Tex. Labor Code § 21.202).

• Sabine Pilot wrongful termination: 2 years under Texas’ general tort limitations (Tex. Civ. Prac. & Rem. Code § 16.003).

3. Licensing and Attorney Representation in Texas

Only attorneys licensed by the State Bar of Texas may represent clients in Texas state courts. Out-of-state lawyers must secure pro hac vice admission. For federal court matters in the Southern District of Texas (covering Houston), attorneys must be admitted to that district’s bar.

Steps to Take After Workplace Violations

1. Document Everything

Maintain copies of pay stubs, time sheets, emails, and text messages. In a wage case, corroborating hours worked versus hours paid is crucial.

2. Internal Complaint

Many Houston employers—especially Fortune 500 companies in the Energy Corridor—have written grievance procedures. Filing an internal complaint can preserve evidence and sometimes resolve the issue without litigation.

3. File an External Complaint

• Texas Workforce Commission: For wage claims under $20,000, file a Payday Law claim within 180 days. Use the TWC’s online portal or mail Form LL-1.

• Equal Employment Opportunity Commission: For discrimination or retaliation, file a charge within 300 days. Houston’s EEOC field office is located at 1919 Smith Street, 7th Floor.

• Department of Labor (Wage & Hour Division): For FLSA wage violations, call 1-866-4US-WAGE or visit the local office at 8701 South Gessner, Suite 1164.

4. Consider Mediation

The TWC Civil Rights Division and the EEOC both offer voluntary mediation early in the process. Successful mediations resolve many cases within a few months without trial expenses.

5. Seek Legal Counsel

If the claim is substantial, involves complex FLSA collective actions, or the employer has retained counsel, hiring an experienced employment lawyer houston texas residents trust can make a decisive difference. An attorney can preserve evidence, advise on strategy, and file a lawsuit before the statute of limitations expires.

When to Seek Legal Help in Texas

Employees often wait too long, believing the company will fix the problem. You should schedule a consultation when:

• You are owed more than one pay period of wages or overtime.

• You receive a Right-to-Sue letter from the EEOC or TWC and have 90 days to file suit.

• You suffer retaliation after whistleblowing.

• You are terminated and suspect it violates an exception to at-will employment.

• You are presented with a severance or arbitration agreement and need advice before signing.

Many Texas employment lawyers, including those in Houston, offer contingency-fee or hybrid arrangements, reducing upfront costs for workers.

Local Resources & Next Steps

Texas Workforce Commission – Job Seekers & Employees EEOC Houston District Office U.S. Department of Labor – Wage & Hour Local Offices

• Houston Legal Aid organizations, such as Lone Star Legal Aid, provide free consultations to qualifying low-income workers.

• University of Houston Law Center’s Civil Clinic offers limited representation for wage claims.

Staying informed is your first defense. Bookmark this guide, share it with coworkers, and consider periodic reviews of your pay stubs. Empowered employees help build safer, fairer workplaces across Houston.

Legal Disclaimer

This article is for educational purposes only and does not constitute legal advice. The information is accurate as of publication but may change. Always consult a licensed Texas employment attorney regarding your specific situation.

If you experienced workplace discrimination, wrongful termination, or wage violations, call Louis Law Group at 833-657-4812 for a free case evaluation and employment consultation.