Texas Employment Law — full calculator

Frequently Asked Questions

• Does Texas have its own overtime law beyond the federal FLSA?

  No. Texas does not have a separate state overtime law. The federal Fair Labor Standards Act (FLSA) governs overtime in Texas: non-exempt employees are owed 1.5× their regular rate for hours worked over 40 in a workweek. Texas has no daily overtime rule (unlike California), so an employee who works 10 hours in one day but fewer than 40 hours in the week is not owed overtime under Texas or federal law (as of 2026).

• When must a Texas employer issue a final paycheck after firing an employee?

  Under the Texas Payday Law (Tex. Lab. Code §61.014), an employer must issue the final paycheck within 6 calendar days of discharging an employee — this includes terminations, layoffs, and involuntary separations. The 6-day count includes weekends and holidays (as of 2026).

• What is the Texas final paycheck deadline when an employee quits?

  If an employee voluntarily resigns, retires, or leaves on their own, the employer must pay the final check on the next regularly scheduled payday after the employee's last day. There is no 6-day rule for voluntary separations under Texas Payday Law (as of 2026).

• Are non-compete agreements enforceable in Texas?

  Yes, with conditions. Under the Texas Covenants Not to Compete Act (Tex. Bus. & Com. Code §15.50), a non-compete is enforceable if it is ancillary to or part of an otherwise enforceable agreement (e.g., providing access to trade secrets or proprietary training), and contains reasonable limitations as to time, geographic area, and scope of activity. Courts will reform — not void — overbroad covenants to the narrowest reasonable scope (as of 2026).

• What are the new 2025 rules for non-compete agreements affecting Texas healthcare workers?

  The 89th Texas Legislature (2025) added hard statutory caps for healthcare practitioners (dentists, nurses, physician assistants): (1) duration cannot exceed 12 months after termination; (2) geographic scope cannot exceed a 5-mile radius from the primary practice location; (3) the employer must allow a buyout at a price not exceeding the practitioner's total annual salary and wages at termination; (4) covenant terms must be clearly and conspicuously stated in writing. These caps are effective under Tex. Bus. & Com. Code §15.50 (as of 2026).

• What special non-compete rules apply to Texas physicians?

  Non-compete covenants against licensed physicians (MD/DO) must comply with the general reasonableness standard under §15.50. Additionally, regardless of enforceability, the employer must provide the physician with a list of patients the physician saw or treated within one year before the termination of the contract or employment relationship.

• Does Texas require employers to provide meal breaks or rest breaks?

  No. Texas has no state law requiring employers to provide meal breaks or rest breaks to adult employees in the private sector. This mirrors the federal FLSA, which is also silent on mandatory breaks. If an employer does provide short rest breaks (20 minutes or less), those breaks must be paid under federal law. Meal breaks of 30+ minutes where the employee is fully relieved of duties need not be paid.

• Is there a Texas state sick leave law?

  No. Texas has no statewide law requiring private-sector employers to provide paid or unpaid sick leave. Sick leave policies in Texas are entirely at the employer's discretion, except where federal law applies (e.g., FMLA for qualifying employers and employees). Several Texas cities (Austin, San Antonio, Dallas) attempted local sick leave ordinances but those were blocked or preempted by state action (as of 2026).

• What is the minimum wage in Texas in 2026?

  Texas adopts the federal minimum wage by reference. The federal minimum wage is $7.25 per hour (as of 2026). Texas does not have a higher state minimum wage. Tipped employees may be paid as little as $2.13 per hour in direct wages if tips bring total compensation to at least $7.25 per hour, following the federal tip-credit rules.

• What penalty can the Texas Workforce Commission impose for unpaid wages?

  The TWC can impose an administrative penalty of up to $1,000 or the amount of unpaid wages in dispute — whichever is less — for a bad-faith failure to pay wages. Employers generally receive a warning on first offense. Repeated violations can result in a TWC bonding requirement, meaning the employer must post a bond to continue employing workers in Texas. Employees have 180 days from the original due date to file a wage claim with TWC.