Texas Labor Laws: At-Will Jobs, Non-Competes, Pay and Child Labor Rules
Short answer
Partly. Texas leaves most job terms to employers: work is at will, the minimum wage is the federal $7.25, and no state law requires breaks or caps adult hours. The state does regulate final pay (Labor Code ch. 61), non-competes (Business and Commerce Code § 15.50), child labor and discrimination.
Last verified October 26, 2026 against current Texas law
Texas labor laws are lighter than the rules in many other states. There is no state rule on lunch breaks, no cap on how long an adult can be scheduled, and no required paid sick leave. But the state does set firm rules on when your last paycheck is due, how far a non-compete can reach, what hours teenagers can work, and when an employer can skip workers’ compensation insurance. This guide explains each rule in plain English, which agency enforces it, and what changed in 2025 and 2026.
| Employment type | At will: either side can end the job at any time, with limits |
|---|---|
| Minimum wage | $7.25 per hour, tied to the federal rate (Labor Code § 62.051) |
| Final paycheck | Fired: within 6 days. Quit: by the next regular payday (Labor Code § 61.014) |
| Wage claim deadline | 180 days after the wages were due, filed with the Texas Workforce Commission |
| Breaks and adult hours | No Texas or federal law requires breaks or limits hours for workers 16 and older |
| Non-competes | Enforceable if reasonable and tied to a real business interest (Business and Commerce Code § 15.50) |
| Workers’ comp | Optional for most private employers; required for public employers |
| Main enforcers | Texas Workforce Commission, Texas Department of Insurance, U.S. Department of Labor |
Texas labor laws every worker should know
Texas is an at-will state, which means an employer can fire you, and you can quit, for almost any reason or no reason at all, with or without notice. A handful of exceptions protect workers from the worst abuses. Texas is also a right-to-work state: under Labor Code § 101.052, nobody can be denied a job because they belong, or do not belong, to a labor union.
What an employer cannot fire you for
- Filing a workers’ compensation claim in good faith, hiring a lawyer for one, or testifying in one (
Labor Code § 451.001). - Refusing to do something that carries criminal penalties. Texas courts recognize this narrow exception from the 1985 case
Sabine Pilot Service, Inc. v. Hauck. It covers only an illegal act you were told to do, not a policy you simply dislike. - Race, color, disability, religion, sex, national origin, age or retaliation for complaining about discrimination, under the Texas Commission on Human Rights Act (
Labor Code ch. 21) and matching federal law.
Anything outside those exceptions is usually legal. An employer can cut your hours, change your schedule or end your job without giving a reason, unless a contract or union agreement says otherwise.
Are non-competes legal in Texas?
Yes, if they are reasonable. A non-compete is enforceable in Texas when it is part of an otherwise enforceable agreement and its time, area and type of work are no broader than needed to protect the employer’s legitimate business interest, under Business and Commerce Code § 15.50(a). Trade secrets and customer goodwill qualify; simply avoiding competition does not.
If a court finds a non-compete too broad, it does not throw the whole thing out. Under § 15.51(c), the court must reform it to a reasonable scope and enforce that version. In that case the employer cannot recover damages for the time before reformation and is limited to an injunction. The worker may recover attorney’s fees only if the employer knew the terms were unreasonable and still tried to enforce them more broadly than necessary, and the agreement’s main purpose was personal services.
Section 15.52 makes these rules exclusive, so they replace common-law arguments on both sides.
Health care workers have stricter limits since 2025
Senate Bill 1318 changed the rules for physicians, dentists, nurses and physician assistants. It applies to non-competes signed or renewed on or after September 1, 2025. Under § 15.50 and the new § 15.501, a covered non-compete must:
- Last no longer than one year after the job ends.
- Cover no more than a five-mile radius around where the practitioner mainly worked.
- Include a buyout no higher than the practitioner’s total annual salary and wages.
- State its terms clearly and conspicuously in writing.
A physician who is fired without good cause also cannot be held to a non-compete. Older contracts keep the rules in place when they were signed.
The federal ban that did not happen
The Federal Trade Commission tried to ban most non-competes nationwide in 2024, but a federal court blocked the rule. In September 2025 the FTC voted to drop its appeals and accept the court’s ruling. Texas courts therefore still judge each agreement under state law.
Texas minimum wage and hourly employee rules
Texas requires employers to pay the federal minimum wage, which is $7.25 per hour in 2026. The Texas Minimum Wage Act ties the state rate to the federal rate in Labor Code § 62.051, and workers covered by the federal Fair Labor Standards Act (FLSA) are handled under federal law. Tipped employees follow the FLSA tip-credit rules in § 62.052.
Overtime is also federal, as our guide to Texas overtime laws explains. A non-exempt hourly employee must be paid at least one and one-half times the regular rate after 40 hours in a workweek, and Texas has no daily overtime rule. Salaried managers, some professionals and outside salespeople can be exempt, but a salary alone does not make a worker exempt. Pay frequency, deductions and final pay fall under the Texas Payday Law, covered next.
When your final paycheck is due
A fired worker must be paid within six calendar days, and a worker who quits must be paid by the next regular payday, under Labor Code § 61.014. Vacation or sick pay counts as wages only if a written agreement or written company policy promises it (§ 61.001(7)(B)). If your employer has a written payout policy, it controls.
An employer can withhold wages only with a court order, with legal authority such as a tax rule, or with your written permission for a lawful purpose (§ 61.018).
How to file a wage claim
File a wage claim with the Texas Workforce Commission within 180 days after the wages were due. The deadline in § 61.051 is jurisdictional, so a late claim can be dismissed. If the agency finds bad faith, it can add an administrative penalty of up to the lesser of the unpaid wages or $1,000 (§ 61.053). Intentionally avoiding payment of wages owed and not paying after a demand can be a third-degree felony (§ 61.019).
Is it legal to work 24 hours straight in Texas?
Yes, for most adults. Texas has no law that limits how many hours in a row an adult employee can be scheduled, and the FLSA does not limit hours for workers 16 and older. The U.S. Department of Labor also says the FLSA does not require meal or rest breaks.
That also answers how many hours there must be between shifts: no Texas statute sets a minimum rest period for ordinary jobs. Your schedule is governed by your employment agreement, any union contract and your employer’s policy. There are exceptions by job type:
- Commercial truck drivers: federal hours-of-service rules limit driving to 11 hours after 10 consecutive hours off duty, inside a 14-hour window (49 CFR Part 395).
- Workers under 16: state and federal child labor rules cap hours, covered below.
- Union and contract workers: a collective bargaining agreement can add rest-period or shift-spacing rules.
What are the child labor laws in Texas?
Texas sets hour limits for 14- and 15-year-olds and bans hazardous jobs for everyone under 18. Teens 16 and 17 have no state or federal limit on hours.
| Age | Hour limits | Main restrictions |
|---|---|---|
| 14 and 15 | State: 8 hours a day and 48 a week; no work before 5 a.m.; no work after 10 p.m. before a school day; no work past midnight otherwise. Federal: 3 hours on a school day, 18 a week in school weeks, 7 a.m. to 7 p.m. (to 9 p.m. June 1 to Labor Day) | No manufacturing, driving, warehousing, construction, ladders, or most cooking and meat-slicing tasks |
| 16 and 17 | No limit on hours | No driving on public roads as a job, no power-driven hoists such as forklifts, no roofing, excavation or demolition, and no operating many saws and balers |
Where state and federal rules differ, employers should follow the stricter one. Violating Texas child labor law is generally a Class B misdemeanor, and the Texas Workforce Commission can add an administrative penalty of up to $10,000 per violation. The details are in Labor Code ch. 51. Parents or teens who think a job breaks these rules can report it to the Commission’s Wage and Hour department.
Texas workers’ compensation laws
Workers’ compensation is optional for most private employers in Texas. Labor Code § 406.002 lets a private employer decide whether to buy coverage, while public employers are treated differently and governments must confirm that contractors on public building projects carry coverage (§ 406.096). Employers without coverage are called nonsubscribers.
Nonsubscribers carry real legal risk. If you are hurt on the job, you can sue a nonsubscriber for negligence. Under § 406.033, the employer cannot argue that you were partly at fault, that you accepted the risk, or that a co-worker caused the injury. Pre-injury waivers of this right are void.
Nonsubscribers must post a notice of no coverage, give new hires written notice, and report to the Texas Department of Insurance, Division of Workers’ Compensation. Employers with five or more employees must report injuries involving more than one day of lost time. Whatever the employer’s choice, it is illegal to fire you for filing a claim (§ 451.001). For other accident rights, see our Texas injury and accident guides.
Workplace harassment and Texas employment law
Texas employment law bars harassment and discrimination through the Texas Commission on Human Rights Act, found in Labor Code ch. 21. Most employers are covered once they have 15 or more employees. For sexual harassment, Senate Bill 45 (effective September 1, 2021) made the law apply to employers of any size and reaches individuals who act directly in the employer’s interests.
To file, you complain to the Texas Workforce Commission Civil Rights Division. The deadline is 180 days after the act for most claims and 300 days for sexual harassment (§ 21.202). Late complaints are dismissed. Federal law, including Title VII, is enforced by the U.S. Equal Employment Opportunity Commission, which has its own deadline, so file early with whichever agency fits.
Since September 1, 2025, Senate Bill 835 also makes confidentiality terms in employment and settlement agreements void to the extent they bar disclosure of sexual abuse. Payment amounts can still be kept confidential, and the rule reaches earlier agreements unless a court allows secrecy.
Texas labor law posters employers must display
Every Texas employer has to post notices where employees can see them, and which ones depend on size and coverage. The Texas Workforce Commission lists these:
| Poster | Who must post it | Agency |
|---|---|---|
| Texas Payday Law (or combined Payday and Unemployment notice) | Employers subject to the Payday Law | Texas Workforce Commission |
| Equal Employment Opportunity | Employers with 15 or more employees | U.S. Equal Employment Opportunity Commission |
| Workers’ compensation coverage notice | All employers | Texas Department of Insurance |
| Ombudsman Program notice | Employers with workers’ compensation coverage | Office of Injured Employee Counsel |
| Reporting Workplace Violence notice (English and Spanish) | Employers with one or more employees, since January 8, 2024 | Department of Public Safety |
| Federal wage and workplace notices | Employers covered by federal law | U.S. Department of Labor, free to download |
The Commission’s Wage and Hour department can help employers decide which apply. Its number is 800-832-9243.
Texas labor laws in Houston and San Antonio
City governments in Texas have little power to write their own workplace rules. Cities tried, and the courts and the Legislature stopped them.
- Austin: the Third Court of Appeals ruled on November 16, 2018 that its paid sick leave ordinance conflicted with the Texas Minimum Wage Act, and the Texas Supreme Court declined to hear the case.
- San Antonio: the Fourth Court of Appeals upheld a preliminary injunction against its sick leave ordinance on March 10, 2021.
- Dallas: a federal court blocked its paid sick leave ordinance on March 30, 2020.
- Houston: Houston, San Antonio and El Paso challenged House Bill 2127, the Texas Regulatory Consistency Act, which took effect September 1, 2023 and limits local rules in areas including labor. The Third Court of Appeals dismissed their challenge on standing grounds in July 2025 and denied rehearing on April 15, 2026. The cities’ deadline to ask the Texas Supreme Court to review the case was June 29, 2026, so check the court’s docket for the latest.
In practice, an employee in Houston or San Antonio has the same state and federal rights as one in Lubbock. Private employers may offer paid sick leave or breaks, but no Texas city can require it.
Real situations: how Texas labor law plays out
You quit on Friday and your last check has not come
Check your regular payday. If you quit, the check is due by the next regular payday, not six days later. If that date passes, ask in writing, then file a wage claim with the Texas Workforce Commission within 180 days of the due date.
You are handed a non-compete on your first day
Read the time, area and job description. A one-year limit on working for a direct competitor in your own sales region is often enforceable, while a ban on any work in the industry anywhere in Texas is likely too broad and would be cut back by a court. If you are a health care practitioner, check the 2025 rules above.
Myths vs. facts about Texas labor laws
| Myth | Fact |
|---|---|
| “My employer has to give me a lunch break.” | Neither Texas nor federal law requires meal or rest breaks for adult workers. |
| “They have to give two weeks’ notice before firing me.” | Texas is at will. Notice is only required if a contract or policy promises it. |
| “All non-competes are void in Texas.” | They are enforceable if reasonable, and courts reform ones that are too broad. |
| “Every employer has to carry workers’ comp.” | Most private employers can opt out, but they then face injury lawsuits with fewer defenses. |
| “My city has its own sick leave rule.” | Austin, San Antonio and Dallas rules were blocked, and state law now limits local labor rules. |
Texas labor law compared with neighboring states
| State | 2026 minimum wage | Non-competes |
|---|---|---|
| Texas | $7.25 (federal rate) | Enforceable if reasonable; extra limits for health care |
| Oklahoma | $7.25 (federal rate) | Generally prohibited |
| Louisiana | $7.25 (federal rate) | Enforceable only if they follow strict statutory limits |
| New Mexico | $12.00 | Limited by statute for health care practitioners |
| Arkansas | $11.00 | Allowed if reasonable |
Frequently asked questions
What are the labor laws in Texas?
Texas follows the federal minimum wage and overtime rules, sets its own final pay deadlines under the Payday Law, and regulates child labor, discrimination, workers’ compensation and non-competes. It has no state rules on meal breaks, adult work hours or paid sick leave. Most jobs are at will.
Are non compete agreements legal in Texas?
Yes. A non-compete must be part of an enforceable agreement and be reasonable in time, area and scope under Business and Commerce Code § 15.50. Courts can narrow an overbroad one. Since September 1, 2025, doctors, dentists, nurses and physician assistants have stricter protections.
How many hours straight can you legally work in Texas?
There is no Texas or federal cap for adult employees in most jobs, so a long shift can be legal. Commercial truck drivers face federal driving limits, and workers under 16 have hour limits. Your contract or union agreement may set stricter rules than the law does.
What are the child labor laws in Texas?
Fourteen- and 15-year-olds can work up to 8 hours a day and 48 hours a week under state law, with tighter federal limits during school. Workers 16 and 17 face no hour limits. Hazardous jobs are banned for everyone under 18. Violations can bring penalties of up to $10,000.
Do Texas employers have to carry workers’ compensation?
No, not most private employers. They can choose to be nonsubscribers under Labor Code § 406.002, but must post notice and file with the state. Public employers cannot opt out. An injured worker can sue a nonsubscriber, which loses key defenses under § 406.033.
What changed on this page
October 26, 2026: First published and verified against current Texas law. Covers the 2025 health care non-compete limits, the end of the federal non-compete rule, the Payday Law deadlines, child labor hours, and the status of local labor ordinances.
If this affects you: for unpaid wages, file a claim with the Texas Workforce Commission Wage and Hour department within 180 days. For discrimination or harassment, contact the Commission’s Civil Rights Division. For a non-compete, a firing you believe is illegal or a workplace injury, speak with a Texas-licensed employment or workers’ compensation attorney before you sign or respond. This guide is general legal information, not advice for your situation. Browse more in our work and business guides, including the Texas cottage food law for home food sellers, read how we research every guide in our editorial policy, or report an error.
