Texas Labor Laws: Wages, Breaks and Overtime (2026)

Texas labor laws explained: minimum wage, overtime, breaks, child labor, and more. Essential guide for construction employers. Updated 2026.

Frequently asked questions about texas labor laws
What is the minimum wage in Texas?

Texas minimum wage is $7.25 per hour, the same as the federal FLSA floor. The state has not raised this rate since July 2009. Texas prohibits cities and counties from setting higher local rates under the Texas Regulatory Consistency Act. Workers on qualifying federal contracts under Executive Order 13658 must earn at least $13.65 per hour as of May 11, 2026. That rate applies only to covered federal work, not private construction.

How does Texas handle overtime pay?

Texas follows federal FLSA rules. Non-exempt workers earn 1.5 times their regular rate for all hours over 40 in a workweek. The EAP salary exemption threshold is $684 per week ($35,568 per year). The DOL formally rescinded its 2024 overtime rule on May 13, 2026. The $1,128 per week figure that appeared in many 2024 publications never took effect in Texas and no longer exists at the federal level. Salaried construction supervisors and project managers earning above $684 per week who pass the duties test are exempt.

Who is exempt from overtime pay in Texas?

EAP employees are exempt if they earn at least $684 per week and satisfy the applicable duties test for executive, administrative, or professional roles. Outside sales employees primarily working away from the employer’s premises are also exempt. Highly compensated employees earning $107,432 or more annually who perform at least one exempt duty qualify under the HCE exemption. The Fifth Circuit’s Gilchrist v. Schlumberger ruling (July 2025) clarified that an HCE needs to perform only one qualifying duty on a customary and regular basis, even if the rest of their work is manual.

How does Texas regulate meal and rest breaks?

Texas has no state break law for adult employees. Employers are not required to provide meal periods or rest breaks of any kind under Texas labor laws breaks. When employers offer breaks under 20 minutes, those breaks must be paid under FLSA. Unpaid meal periods require 30 minutes or more of complete relief from duties. Construction employers who commit to breaks in a written policy or crew agreement must honor that commitment, as the TWC enforces written wage policies as wage obligations.

Are tipped employees paid differently in Texas?

Yes. The tipped minimum wage in Texas is $2.13 per hour. Employers claim a $5.12 tip credit per hour toward the $7.25 federal minimum. If a worker’s tips do not bring the hourly total to $7.25, the employer must cover the gap. This applies to any Texas employer using the federal tip credit, not only restaurants or food service employers.

What are the rules for youth employment in Texas?

Children under 14 generally cannot work in Texas. Workers aged 14 and 15 can work outside school hours with strict daily and weekly hour limits (3 hours on school days; 18 hours in school weeks). Workers aged 16 and 17 have no hour restrictions but remain prohibited from hazardous occupations, including roofing, excavation, and heavy equipment operation. Texas child labor violations carry TWC penalties up to $10,000 per offense. Federal OSHA enforcement for hazardous occupation violations is additional.

What are Texas labor laws on final paychecks after termination?

Fired or laid-off employees receive their final paycheck within six calendar days of the termination date. Employees who resign receive it by the next scheduled payday. Both timelines are enforced under the Texas Payday Law. The final paycheck must include all earned wages, unpaid overtime, and applicable commissions. Accrued PTO is owed only if the employer’s written policy commits to payout. Wage claims for late final paychecks are filed with the Texas Workforce Commission.

Does Texas require employers to pay out unused PTO upon termination?

No. Texas does not mandate PTO payout on termination by default. The employer’s own written policy controls. If the policy says unused PTO is forfeited at termination, it is forfeited. If the policy promises payout, the TWC enforces that commitment as a wage obligation. Before writing a PTO policy, decide the payout rule, put it in writing, and apply it uniformly across all workers. Inconsistent enforcement of a written PTO policy can trigger wage claims.

Is Texas a right-to-work state, and what does that mean for construction crews?

Yes, Texas is a right-to-work state under the Texas Right to Work Act. Workers cannot be required to join a union or pay union dues as a condition of employment. On a unionized construction project, individual crew members can decline union membership. The wages, hours, and terms in a collective bargaining agreement still govern the project, regardless of individual union status. Texas right to work protects individual workers from mandatory participation; it does not lower wages or eliminate CBAs on union projects.

What recordkeeping does a Texas construction employer need to maintain?

Keep employment applications and termination records for one year. Keep timecards, schedules, and wage-rate tables for two years. Keep payroll records, employment contracts, and I-9 forms for three years. For Davis-Bacon or certified payroll jobs, retain wage rate sheets and certified payroll records for three years after project completion. Digital recordkeeping meets federal standards if records are accessible and reproducible on demand. The TWC can request payroll records during an audit with short notice.

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