Question 1

Is Texas an at-will employment state?

Accepted Answer

Yes. Texas is an at-will employment state, meaning employers can generally terminate employees for any reason — or no reason — as long as it is not an illegal reason (such as discrimination based on a protected class, retaliation for protected activity, or violation of a contract). Employment agreements, company policies, and collective bargaining agreements can modify at-will status.

Question 2

What are Texas employers required to pay regarding minimum wage and overtime?

Accepted Answer

Texas follows the federal minimum wage of $7.25 per hour. The Fair Labor Standards Act (FLSA) requires non-exempt employees to receive time-and-a-half for hours worked over 40 in a workweek. Texas has not enacted a higher state minimum wage. Proper classification of exempt vs. non-exempt employees is a common compliance issue — misclassification can result in significant back-pay liability.

Question 3

What should a Texas employee handbook include?

Accepted Answer

A well-drafted handbook typically covers: at-will employment disclaimer, anti-discrimination and harassment policies (with reporting procedures), leave policies (PTO, FMLA, Texas-specific leave), workplace safety, technology and social media use, disciplinary procedures, and confidentiality expectations. An employment attorney ensures the handbook complies with current Texas and federal law and is updated as laws change.

Question 4

What are the risks of misclassifying workers as independent contractors?

Accepted Answer

Misclassification can result in liability for: unpaid payroll taxes plus penalties, overtime under FLSA, workers compensation claims, unemployment insurance exposure, and employee benefits. The IRS and DOL use multi-factor tests focused on control and economic dependence. Texas Workforce Commission also has its own classification standards for unemployment purposes. An attorney can evaluate whether your contractor relationships are defensible.

Question 5

What is the Texas Payday Act and what does it require?

Accepted Answer

The Texas Payday Act governs how and when employers must pay wages. Texas employers must establish and follow a regular pay schedule (at least twice monthly for most employees, monthly for exempt employees). The act restricts when deductions can be made from wages, requires written authorization for most deductions, and provides a complaint process through the Texas Workforce Commission for unpaid wage claims.

Service	Typical Range
Employee Handbook Drafting	$1,500–$5,000
Employment Agreement	$500–$2,000
Severance / Separation Agreement	$500–$1,500
EEOC Charge Response	$2,000–$8,000+
HR Policy Compliance Audit	$1,000–$4,000

Employment & Labor Law

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