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Texas Employment Law Compliance Guide for Small Businesses
Low Complexity
Texas follows federal minimums for most employment requirements. Texas has a strong at-will employment doctrine. Texas employers must carry workers' compensation insurance or opt out and lose certain legal protections.
Key Numbers
MINIMUM WAGE
$7.25 (federal minimum)
TIPPED WAGE
$2.13 (tip credit allowed)
Compliance Requirements
✓No Pay Transparency Law
Texas does not currently require salary ranges in job postings. Federal contractors may still have obligations.
✓No State Paid Leave Mandate
Texas does not require paid sick leave at the state level. Some local jurisdictions may have their own requirements.
★Tip Credit: $2.13 (tip credit allowed)
Employers may pay tipped employees a reduced cash wage if tips bring total compensation to at least the minimum wage.
Federal Thresholds That Apply in Texas
These federal requirements apply to all Texas employers based on headcount:
1+ employees: FLSA (wage and hour), IRCA (I-9 verification), EPPA (polygraph), USERRA (military leave)
15+ employees: Title VII (discrimination), ADA (disability), GINA (genetic information), Pregnant Workers Fairness Act
20+ employees: ADEA (age discrimination), COBRA (health continuation)
50+ employees: FMLA (12 weeks unpaid leave), ACA (affordable health coverage or $2,880/employee penalty), EEO-1 reporting
100+ employees: WARN Act (60-day notice for mass layoffs)
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This guide is for informational purposes only and does not constitute legal advice. Employment laws change frequently. Consult a licensed attorney for advice specific to your business. Last updated March 2026.