Texas Employment Law — full calculator

Frequently Asked Questions

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

  Under the Texas Payday Law (Tex. Lab. Code Ch. 61, as of 2026), an employer must deliver the final paycheck within 6 calendar days of an involuntary discharge (firing, layoff, or reduction in force). This deadline runs from the date of separation, not the next scheduled payday.

• When is the final paycheck due in Texas if I quit?

  If you resign or retire voluntarily, your Texas employer must pay your final wages on the next regularly-scheduled payday following your last day of work. Unlike employees who are fired, voluntarily departing employees do not benefit from the 6-day rule — federal FLSA has no deadline in this case, and Texas law ties payment to the normal pay cycle.

• Can a Texas employer withhold a final paycheck because I didn't return company equipment?

  No. Under the Texas Payday Law, an employer cannot hold a final paycheck past the legal deadline for reasons such as unreturned equipment, unsigned timesheets, or outstanding loans. The employer may pursue separate civil action to recover property, but the final paycheck must be released on time.

• What penalty applies if a Texas employer pays final wages late?

  If the Texas Workforce Commission (TWC) investigates a wage claim and finds the employer acted in bad faith, it may assess an administrative penalty equal to the wages owed or $1,000, whichever is less. Repeated violations raise the likelihood of a penalty. The TWC may also impose administrative liens and bank levies to collect unpaid wages.

• Are non-compete agreements enforceable in Texas?

  Yes — under Tex. Bus. & Com. Code §15.50 (as of 2026), a non-compete is enforceable if it is ancillary to an otherwise enforceable agreement (such as an employment contract that grants access to trade secrets or proprietary information) and contains reasonable limits on duration, geographic area, and the scope of restricted activities.

• What happens if a Texas non-compete is overbroad?

  Texas courts do not void overbroad non-competes outright. Instead, §15.51(c) of the Business & Commerce Code requires courts to reform ('blue-pencil') the agreement to reduce the scope to a reasonable level and then enforce it as rewritten. This makes Texas different from states like California, which ban non-competes entirely.

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

  No. Texas has no state law requiring employers to provide meal periods or rest breaks for employees aged 18 or older. Short rest breaks of 20 minutes or less that employers voluntarily provide must be paid as work time under federal FLSA, but providing breaks at all is entirely optional in Texas.

• Is there a Texas state minimum wage higher than the federal minimum?

  No. Texas has not set a state minimum wage above the federal level. The Texas minimum wage equals the federal FLSA floor of $7.25 per hour as of 2026. There is no Texas-specific tipped wage rule; federal cash-wage minimums apply.

• Does Texas have a paid sick leave law?

  No. Texas has no statewide paid sick leave mandate for private employers. Moreover, the Texas Regulatory Consistency Act (effective September 1, 2023) prohibits local governments from enacting paid sick leave ordinances, so city-level mandates that were previously in effect in Austin, Dallas, and San Antonio no longer apply.

• Does Texas have its own overtime rules beyond the federal 40-hour rule?

  No. Texas follows the federal FLSA overtime standard exactly: 1.5× the regular rate for all hours worked beyond 40 in a 7-day workweek. Texas has no daily overtime threshold (unlike California), no 7th-day double-time rule, and no higher state overtime rate.