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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.
What’s new in 2026?
Texas Meals and Breaks
No LawFor Lunch Breaks
Texas lunch break laws impose no minimum meal period on employers.
Federal FLSA rules govern by default. If an employer provides a rest break under 20 minutes, that break must be paid. Meal periods of 30 minutes or more can be unpaid, but only if the worker is fully relieved of all duties.
No LawFor Rest Breaks
Texas has no state law requiring rest breaks for adult employees.
Are 15 minute breaks required by law in Texas? No. Employers can offer 15-minute rest periods as a workplace policy, but no federal or state law requires them for adult workers.
For a drywall crew running two-hour phases on a commercial build, this means the schedule is entirely at the employer’s discretion. If the employer’s written policy or crew agreement promises two 15-minute breaks, that policy is enforceable. The TWC treats written wage policies as wage obligations.
Texas Leave and Paid Time Off (PTO)
No state requirement: Texas does not mandate paid or unpaid sick leave. Employers are free to decide whether or not to offer sick leave, but if they do, they must follow their own policy as outlined in employee handbooks or contracts.
Texas follows the federal Family and Medical Leave Act (FMLA), which applies to employers with 50 or more employees.
The law entitles eligible employees to take up to 12 weeks of unpaid, job-protected leave within a 12-month period for specific family and medical reasons.
The law ensures that employees can take time off for their own or their family’s health-related needs without risking their job security.
Eligible employees can use FMLA leave for:
- Their own serious health condition that prevents them from working.
- Caring for an immediate family member (spouse, child, or parent) with a serious health condition.
- The birth and care of a newborn child, or placement of a child for adoption or foster care.
- Military family leave, such as handling exigencies arising from a family member’s active duty or caring for a service member with a serious injury or illness.
Under FMLA, employers are required to maintain the employee’s health insurance coverage during the leave, just as if they were still working.
Once the leave is over, employees are entitled to return to their same position or an equivalent one with the same pay, benefits, and working conditions.
No state requirement: Texas does not require employers to provide bereavement leave for employees after the death of a family member. Employers may choose to offer this leave voluntarily as part of their benefits package.
Parental leave is available under the federal FMLA, allowing eligible employees to take up to 12 weeks of unpaid leave for the birth, adoption, or foster care of a child. Texas does not have additional parental leave laws.
No state requirement: Employers in Texas are not required to provide paid or unpaid holiday leave. Whether employees receive holiday time off, including federal holidays, is left to the employer’s discretion.
No state requirement: Texas law does not obligate employers to provide vacation leave, paid or unpaid. However, employers that offer vacation time must honor their established policies and pay out unused vacation upon termination if their policy specifies it.
No specific state law: Texas does not have laws mandating emergency leave. Employers may offer emergency leave for unforeseen circumstances, such as natural disasters, but this is generally up to the employer.
Under federal law, specifically the Uniformed Services Employment and Reemployment Rights Act (USERRA), Texas employees who serve in the military are entitled to unpaid leave when they are called to active duty or training.
Employers must allow employees to return to their jobs once their military service is completed, with the same seniority, status, and pay they would have received if they had not left for military service. This ensures that employees who serve in the military are protected from losing their employment due to their service obligations.
The law applies to all public and private employers and covers both voluntary and involuntary military service.
While the leave is unpaid, some employers may choose to offer paid military leave or allow employees to use accrued paid time off (PTO) during their absence.
Employees are responsible for notifying their employers about their military commitments in a timely manner.
No state requirement: Texas does not have specific laws requiring employers to provide leave for volunteering. Whether or not employees can take time off for volunteer work depends on employer policies.
No state requirement: There are no Texas-specific laws mandating administrative leave, which is typically leave granted for reasons such as investigations or non-disciplinary issues. This is usually at the employer’s discretion.
Texas law ensures that employees have time to vote if they don’t have at least two consecutive hours outside of their work schedule to do so.
Employers must provide enough time off to allow the employee to cast their vote.
The time off must be paid, which means that employees should not lose any wages for taking time off to fulfill their civic duty. This helps employees participate in elections without concern for their work schedules.
Employers are prohibited from retaliating or penalizing employees who take time off to vote. However, if an employee already has two consecutive hours outside of their regular work hours in which to vote, the employer is not required to provide additional time off.
Employers also retain the right to specify when the voting leave is taken, as long as the employee has sufficient time to vote.
Texas law requires that employers allow employees unpaid time off to serve on a jury when summoned.
Although there is no requirement for employers to provide paid leave for jury duty, the law protects employees from being terminated or retaliated against for serving.
This means employees are free to fulfill their civic duty without worrying about losing their jobs or facing penalties from their employer.
Employers must allow the employee to return to their job once their jury duty is completed. Some employers, as part of their internal policies, may offer paid leave for jury duty, but this is not required by law.
Employees should inform their employer as soon as they receive a jury summons so that both parties can plan accordingly for the employee’s absence.
No specific state law: Texas does not have state laws mandating leave for organ or bone marrow donation. Any leave provided for this purpose would depend on an employer’s policies or applicable federal laws, such as the FMLA for serious health conditions.
No state requirement: Texas law does not require employers to provide leave for blood donation. Whether or not employees are granted time off to donate blood is left to the employer’s discretion.
No state requirement: Texas employers are not legally required to provide leave for employees who serve as witnesses in court, unless they are subpoenaed. In such cases, while the law requires employers to allow time off, it does not mandate that this leave be paid.
Texas Wages and Overtime
$7.25/hourMinimum Wage
Texas minimum wage is $7.25 per hour. The Texas Minimum Wage Act ties the state floor directly to the federal FLSA rate. That rate has not changed since July 24, 2009.
The Texas Regulatory Consistency Act preempts all local wage ordinances. Cities and counties cannot set higher local minimums. A residential framing contractor in Austin and one in Lubbock pay the same floor rate.
Contractors on qualifying federal projects face a different standard. Under Executive Order 13658, workers on covered federal contracts must earn at least $13.65 per hour as of May 11, 2026. This does not apply to private commercial or residential construction projects.
1.5x HourlyOvertime Rate
Texas follows FLSA for overtime. Non-exempt workers earn 1.5 times their regular rate for all hours over 40 in a workweek. Texas has no state overtime law that differs from federal rules.
The EAP salary exemption threshold is $684 per week ($35,568 per year). A salaried roofing supervisor earning $690 per week who meets the duties test is legally exempt. A salaried foreman earning $650 per week must receive overtime, regardless of title.
The DOL formally rescinded its 2024 overtime rule on May 13, 2026. The $1,128 per week figure never took effect in Texas and no longer exists at the federal level. Remove it from any internal compensation policies or pay rate guides.
The HCE exemption threshold remains $107,432 per year. The Fifth Circuit clarified in Gilchrist v. Schlumberger (July 14, 2025) that an HCE employee only needs to “customarily and regularly” perform one qualifying exempt duty. Highly paid field supervisors who also perform manual work may qualify under this standard.
$2.13/hourTipped Minimum Wage
The tipped minimum wage Texas rate is $2.13 per hour. Employers claim a $5.12 tip credit per hour toward the $7.25 federal minimum. If tips do not cover the gap, the employer must make up the difference. This applies to any employer using the federal tip credit, not just restaurants.
2x MonthlyPay Frequency
The Texas payday law (Tex. Lab. Code §§ 61.001 et seq.) requires non-exempt (hourly) workers to be paid at least twice per month. Exempt (salaried) workers can be paid monthly. Employers must establish a regular payday and notify workers of the schedule in writing.
2026 UI tax rates and the HB 3699 last-work change
The TWC trust fund ran an estimated $434 million deficit in late 2025. In response, the TWC increased UI tax rates for the 2026 calendar year. The new range is 0.32% to 6.32%, up from 0.25% to 6.25% in 2025. The taxable wage base stays at $9,000 per employee per year.
New employers without six chargeable quarters pay 2.70%. The average experience rate for 2026 is 0.99%, up from 0.85% in 2025. Construction companies with high claims volume will see this reflected in their 2026 quarterly UI payments.
HB 3699 (effective January 1, 2026) also changes how the TWC assigns UI liability among serial employers. The prior 30-hour threshold rule for determining “last work” is gone. Construction companies moving workers between multiple project-based jobs should review the updated rules with payroll counsel.
No local minimum wage: Texas prohibits cities and counties from setting their minimum wages. This means that the federal minimum wage of $7.25 per hour applies uniformly across the state.
- There are no local variations or exceptions for higher minimum wage rates, unlike in some other states like California or New York.
- Some employers and industries may voluntarily offer higher wages based on collective bargaining agreements or company policies.
- Tipped Employees: Paid $2.13 per hour, provided tips bring total earnings to at least $7.25 per hour.
- Youth Wage: Workers under 20 can earn $4.25 per hour for the first 90 days.
- Workers with Disabilities: Can be paid less based on productivity under special FLSA certificates.
- Executive, Administrative, and Professional (EAP) Employees who meet specific salary and job duties criteria.
- Outside Sales Employees, who primarily work away from the employer’s business premises and meet specific job duties.
- Certain Seasonal and Recreational Employees, like workers in amusement parks or seasonal establishments, are also exempt from minimum wage requirements.
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Texas Prevailing Wages
$14.16Low Voltage Electrician (Basic Hourly Rate)
The lowest prevailing wage rate is for low voltage electricians, who earn an hourly rate of $14.16. This role typically involves installing and maintaining electrical systems that operate at lower voltages, such as security systems, telecommunication lines, and alarm systems. While these jobs are essential for building infrastructure, they generally involve lower risks and require fewer qualifications than other construction roles, resulting in a lower wage rate.
$45.54Elevator Mechanic (Basic Hourly Rate)
The highest prevailing wage rate in Texas is for elevator mechanics, who earn a basic hourly rate of $45.54. These skilled workers are responsible for installing, repairing, and maintaining elevators, escalators, and similar equipment, requiring technical expertise and adherence to strict safety standards. The high hourly rate reflects the specialized skills and safety protocols involved in this role.
Texas prevailing wage law applies to public works construction under Texas Government Code Chapter 2258. Workers on state-funded public projects must receive the prevailing wage for their trade and county.
The lowest prevailing wage in recent surveys is for low voltage electricians, at $14.16 per hour. The highest is for elevator mechanics, at $45.54 per hour. Rates vary significantly by trade, county, and project type.
Federal Davis-Bacon prevailing wages apply to federally funded construction. For Texas contractors bidding on federal work, check SAM.gov for current wage determinations before submitting a bid. Using an outdated rate on a Davis-Bacon project is a wage violation.
Federal contractors also face a separate minimum wage floor. Under Executive Order 13658, workers on covered federal contracts must earn at least $13.65 per hour as of May 11, 2026, regardless of the prevailing wage determination.
Texas prevailing wage resources
- Texas Government Code Chapter 2258 (Prevailing Wage Rates)
- DOL Davis-Bacon and Related Acts overview
- SAM.gov Federal Wage Determinations
- University of Texas System Prevailing Wage Rates
Texas Child Labor Laws
Texas child labor laws follow federal FLSA standards with state enforcement by the TWC. For construction employers, the rules are clear: most minors cannot work on job sites, and those who can face strict age-based restrictions.
<14 Years
Laws in Texas for children under 14
Children under 14 are generally prohibited from working in Texas, except for certain exempt jobs like babysitting, working for a family business, newspaper delivery, or performing in the entertainment industry.
14 – 15 Years
Laws in Texas for minors aged 14 to 15
Children ages 14 and 15 are allowed to work, but only within strict limitations. They can work outside of school hours for a maximum of:
- 3 hours on a school day or 8 hours on a non-school day.
- 18 hours in a school week or 40 hours in a non-school week.
- Work hours are limited to 7 a.m. to 7 p.m. (extended to 9 p.m. between June 1 and Labor Day).
16 – 17 Years
Laws in Texas for minors aged 16 to 17
Teens aged 16 and 17 are permitted to work with fewer restrictions than younger children.
- Not limited in their hours and can work any time of day.
- They are still prohibited from working in certain hazardous occupations, including roofing, excavation, and operating heavy machinery.
Other Essential Texas Labor Laws
Health and safety standards in Texas
Texas has no state OSHA plan. All private-sector Texas employers fall under federal OSHA jurisdiction directly. OSHA Texas maintains active National Emphasis Programs for construction falls and heat illness. Texas construction job sites see some of the highest OSHA inspection rates in the country.
Texas employers must: comply with all federal OSHA standards; provide documented safety training for workers in high-risk trades; display the federal OSHA “Job Safety and Health” poster in a visible workplace location; and post inspection results at the job site.
Texas employers must also post the TDLR workplace violence reporting hotline notice. HB 915 (88th Texas Legislature) took effect September 1, 2023. Mandatory bilingual poster display has been required since March 1, 2024. Construction companies that have not posted this notice are already out of compliance.
Report OSHA violations: OSHA online complaint form at osha.gov or OSHA Texas Area Office, (972) 850-4145.
Hiring and/or Firing Employees in Texas
Texas follows the at-will employment doctrine, meaning that employers or employees can terminate the working relationship at any time, for any lawful reason, or for no reason at all, without prior notice.
Employers have broad authority to hire, promote, or fire employees as long as their decisions don’t violate anti-discrimination laws or breach any existing contracts.
Similarly, employees can leave their job without providing notice or reason, unless bound by an employment contract that states otherwise.
Texas is a right-to-work state, which means that employees cannot be required to join or pay dues to a labor union as a condition of employment.
This law protects workers from being forced into union participation and ensures that individuals are free to work in unionized environments without being pressured to join or financially support the union.
Employers cannot deny employment based on a worker’s decision to join or refrain from joining a union, protecting both union and non-union workers alike.
Texas employers can run background checks under the federal Fair Credit Reporting Act. Written consent from the applicant is required. Texas has no state drug testing law for private employers. Consistent, non-discriminatory drug testing policies are permitted.
There is no “Ban the Box” law in Texas. HB 2466 (89th Legislature, 2025) died in committee. Texas employers may inquire about criminal history at any stage of the hiring process, subject only to federal FCRA and Title VII disparate impact guidance.
Texas adheres to both federal and state laws ensuring Equal Employment Opportunity (EEO), which prohibits discrimination based on race, color, national origin, sex, religion, disability, age (40 or older), or genetic information during hiring, promotion, or firing processes.
In addition to federal EEO laws, Texas provides protections under the Texas Labor Code, which further prohibits workplace discrimination.
Employers are required to treat all job applicants and employees fairly in hiring, termination, and promotion decisions, ensuring that no employment action is based on an individual’s membership in a protected class.
Texas anti-discrimination laws
Texas anti-discrimination laws mirror federal standards under Title VII, the ADA, and the ADEA. Employers cannot discriminate based on: race or color, religion, sex (including pregnancy and sexual orientation), national origin, age (40 or older), disability, or genetic information.
Both the Texas Workforce Commission Civil Rights Division and the EEOC enforce these protections. Employees have 180 days to file with the TWC and 300 days to file with the EEOC from the date of a discriminatory act.
Butler v. Collins (Texas Supreme Court, May 23, 2025): Construction supervisors and foremen now face personal tort liability for harassment and discriminatory conduct on the job site. The Texas Supreme Court held that TCHRA’s anti-discrimination statute does not preempt common-law tort claims against individual supervisors. A foreman who harasses a crew member can be sued personally, not just through the employer entity. This exposure is separate from TCHRA employer liability.
EEOC transgender protections — N.D. Texas ruling (May 2025): A federal judge vacated portions of the EEOC’s 2024 harassment guidance addressing gender identity. The court found the EEOC exceeded its authority. This conflicts with the Supreme Court’s 2020 Bostock decision, which remains law. The enforcement picture in Texas is unsettled. Consult employment counsel before making employment decisions that could implicate gender identity protections.
Independent contractor misclassification warning
Texas construction companies rely heavily on 1099 subcontractors. The TWC applies a 20-point right-of-control test to determine employee vs. independent contractor status. When doubt exists, the TWC defaults to employee classification.
If you control when a specialty sub shows up, what tools they use, and how they do the work, the TWC will likely classify that person as an employee. Misclassification exposes Texas contractors to retroactive UI tax assessments, back wages, and civil penalties. The TWC has increased enforcement activity in 2025 and 2026.
Employee resignation and termination
Texas operates under Texas at-will employment for both sides of the relationship. Both employers and workers can end the relationship at any time without cause, absent a contract otherwise.
- Involuntary termination (fired or laid off): Final paycheck due within six calendar days of the termination date. Must include all earned wages, unpaid overtime, and commissions.
- Voluntary resignation: Final paycheck due by the next scheduled payday. Same wage content requirements apply.
Accrued PTO is included in the final paycheck only if the employer’s written policy requires payout. The texas final paycheck law is enforced by the TWC under the Texas Payday Law (Tex. Lab. Code §§ 61.001 et seq.).
Unemployment benefits in Texas
Texas workers who lose their jobs through no fault of their own may qualify for UI benefits. Eligibility requires meeting minimum earnings thresholds during the base period and actively seeking new employment.
HB 3699 (effective January 1, 2026) changed how the Texas Workforce Commission assigns liability among serial employers by removing the prior 30-hour threshold in the “last work” definition. Construction companies with workers moving across multiple project-based jobs should update their HR protocols.
The 2026 UI tax rate range is 0.32% to 6.32%, with the taxable wage base fixed at $9,000 per employee per year. New employers pay 2.70%.
COBRA benefits in Texas
Federal COBRA applies to Texas employers with 20 or more employees. Departing workers can extend group health coverage for up to 18 months. They pay the full premium plus a 2% administrative fee.
Texas also operates a dual-tier continuation system. Employers with 2 to 19 employees are covered under Texas State Continuation, allowing up to nine months of continued coverage after a qualifying event (with at least three consecutive months of prior coverage required). Workers who exhaust federal COBRA can access an additional six months under Texas state law, for a total of up to 24 months.
State continuation applies only to fully insured group health plans. Self-funded employer plans fall under federal ERISA exclusively and are not subject to Texas state continuation rules.
Final paychecks in Texas
Two timelines apply under texas final paycheck law. Fired or laid-off workers: final paycheck within six calendar days. Workers who resign: final paycheck by the next scheduled payday.
Both timelines require the paycheck to include all earned wages, unpaid overtime, and applicable commissions. Accrued PTO is owed only if the written policy commits to it. Wage claims for late or missing final paychecks are filed with the Texas Workforce Commission.
Looking for other state-specific labor laws? Check out these guides:
- Montana Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Nevada Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Arkansas Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Hawaii Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Kentucky Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Michigan Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Indiana Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Delaware Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- New York Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Ohio Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Oklahoma Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Vermont Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Wisconsin Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
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Texas Recordkeeping Requirements
Employers in Texas must follow federal and state guidelines for maintaining accurate employment records. These requirements ensure transparency, compliance with labor laws, and protection of employee rights.
1 Year
Employers must retain these documents for at least one year:
The Equal Employment Opportunity Commission (EEOC) requires employers to keep all employment records for at least one year from the employee’s date of termination. This can include hiring documents, job applications, and termination paperwork.
2 Years
Employers must maintain certain records related to wages and earnings for at least two years:
- Timecards, work schedules, wage-rate tables, and similar records that show hours worked, pay rates, and wages paid.
- Documentation that justifies differences in wages between employees, such as seniority systems, merit systems, job evaluations, and collective bargaining agreements.
- Documents reflecting the business’s shipping, billing, and sales transactions, which can be used to verify wage payments.
3 Years
Employers must keep the following records for a minimum of three years:
- Payroll data, including employee pay rates, hours worked, overtime wages, and employment contracts or agreements.
- Any collective bargaining agreements that affect wages, benefits, or working conditions should be retained for at least three years.
- Detailed documentation of sales transactions, purchase agreements, and related financial records that can impact wage calculations.
- Completed copies of each employee’s Form I-9 (used for verifying work eligibility) must be kept for at least three years after hiring. If the employee’s tenure exceeds three years, the I-9 should be retained for one year after termination.
Penalties for Labor Law Noncompliance in Texas Wages
2x Unpaid WagesWage and Hour Violations
Employers who fail to pay employees their rightful wages may be subject to pay up to two times the amount of unpaid wages as liquidated damages. They may also be required to cover the employee’s legal fees if a lawsuit is filed for wage recovery.
$1,000+ Overtime Violations
If employers violate the Fair Labor Standards Act (FLSA) by not paying overtime, they may be required to pay back wages plus an equal amount in liquidated damages. They may also face civil penalties of up to $1,100 per violation if the Department of Labor (DOL) determines that the violation was willful.
$10,000+Child Labor Law Violations
Employers found violating Texas child labor laws may be fined up to $10,000 per violation.
For particularly egregious violations, such as employing minors in hazardous conditions, fines may exceed $10,000, with the possibility of additional penalties depending on the severity and frequency of the offenses.
Up to $16,550 per serious violationHealth and Safety Violations (OSHA)
Effective January 15, 2025, OSHA raised its maximum civil penalty for serious violations from $16,131 to $16,550 per violation. The maximum for willful or repeat violations rose from $161,323 to $165,514 per violation.
On May 27, 2026, the Federal Register confirmed no COLA adjustment for 2026. The 2025 figures are the enforceable maximums for all of 2026. The figure still appearing in older compliance checklists ($15,625) predated even the 2024 adjustment.
Failure-to-abate now runs $16,550 per day. On a Texas commercial job site, a single repeat citation for fall protection can reach six figures.
Who investigates Texas labor law violations
- Texas Workforce Commission (TWC): Enforces state wage and hour laws. Handles unpaid wages, final paycheck disputes, UI liability assignments, and retaliation claims.
- U.S. Department of Labor (DOL): Enforces FLSA Texas rules, including overtime, minimum wage, and child labor. The Wage and Hour Division investigates complaints and assesses civil penalties.
- OSHA Texas (federal jurisdiction): Handles all private-sector workplace safety violations. Current maximums: $16,550 per serious violation; $165,514 per willful or repeat violation. These rates apply for all of 2025 and 2026.
- Equal Employment Opportunity Commission (EEOC): Investigates discrimination, harassment, and retaliation. Works alongside the TWC Civil Rights Division.
- Texas Department of Insurance (TDI) DWC: Oversees texas workers compensation compliance. Maximum weekly Temporary Income Benefit: $1,271 for injuries dated October 1, 2025 – September 30, 2026. Impairment Income Benefits max at $890 per week. Minimum weekly benefit across all categories: $191.
How Workyard helps Texas construction businesses stay compliant
The compliance picture for Texas construction employers in 2026 is not simple, even without a state overtime law or state break mandate. Federal FLSA thresholds, OSHA penalty maximums, UI tax rates, workers’ comp limits, and individual supervisor liability under Butler v. Collins all changed in the past 18 months.
Workyard’s analysis of 280 contractor discovery calls found that nearly 1 in 3 construction businesses identify labor compliance, including overtime rules, union pay codes, and state wage laws, as a primary operational risk. Workyard is workforce management software especially built for construction businesses.
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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.
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.
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.
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.
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.
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.
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.
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.
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.
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.