Texas Labor Law Guide 2026: Minimum Wage, Overtime, Breaks, and Pay

Texas adds very little to federal wage and hour law. The state minimum wage tracks the federal $7.25, overtime follows the Fair Labor Standards Act, and there is no statewide break, paid sick leave, or predictive scheduling requirement; a 2023 preemption law blocks cities from creating them. What Texas does regulate closely is how and when wages are paid, through the Texas Payday Law enforced by the Texas Workforce Commission (TWC), and the employment of minors under the Texas Child Labor Law.

Minimum Wage in Texas

The Texas Minimum Wage Act adopts the federal minimum wage, so the state rate has been $7.25 per hour since July 24, 2009. Tipped employees may be paid a cash wage of $2.13 with a tip credit of up to $5.12, following the federal rules. Texas Labor Code section 62.0515 prohibits cities and counties from setting a higher minimum wage for private employers, so a single rate applies statewide, and there is no scheduled increase or inflation adjustment.

For the tipped rules, the youth wage, and how Texas compares with neighboring states, see the Texas minimum wage guide.

Overtime Rules

Texas has no overtime statute of its own for private employers. The FLSA governs: non-exempt employees earn 1.5 times their regular rate for hours worked over 40 in a fixed 7-day workweek. There is no daily overtime, no weekend premium, and no seventh-day rule.

Worked example at the minimum wage: an employee paid $7.25 works 45 hours in a week. That is 40 hours at $7.25 ($290.00) plus 5 hours at $10.875 ($54.38), for $344.38 gross. The overtime calculator handles the arithmetic, and the overtime pay laws in the US guide explains the federal rule and the states that go beyond it.

Because Texas relies on federal law, the exempt salary threshold is the federal $684 per week. Wage complaints about unpaid overtime are handled by the US Department of Labor's Wage and Hour Division, while complaints about late or withheld pay go to TWC under the Payday Law.

Meal and Rest Breaks

Texas does not require meal or rest breaks for adult employees. The federal rule applies to any breaks an employer chooses to give: short rest breaks of roughly 5 to 20 minutes are paid working time, and bona fide meal periods of 30 minutes or more can be unpaid only if the employee is completely relieved of duty.

Break type	Requirement	Applies to
Meal period	Not required; if given, unpaid only when the employee is fully relieved for 30 minutes or more	Adults
Rest break	Not required; breaks of 20 minutes or less must be paid	Adults
Minors	No state break requirement; federal child labor rules and school schedules govern	Under 18
Nursing mothers	Reasonable break time and a private space under the federal PUMP Act	All employers

Employers that promise breaks in a handbook or contract must honor them. The break time calculator shows what a compliant schedule looks like in states that do mandate breaks, and our rest and meal break laws by state guide covers the details.

Paid Sick Leave and Other Leave

Texas has no statewide paid sick leave law, and House Bill 2127 (2023) preempts city ordinances on the subject, which ended the Austin, Dallas, and San Antonio paid sick leave efforts. Leave in Texas is a matter of federal law and employer policy.

Leave type	Texas rule
Paid sick leave	Not required; local ordinances preempted
Family and medical leave	Federal FMLA (50 or more employees)
Jury duty	Job-protected; unpaid unless policy provides
Voting	Paid time off to vote if the employee does not have 2 consecutive hours outside work while polls are open
Military	Federal USERRA plus state protection for Texas military forces
Political conventions	Unpaid leave to attend a precinct, county, or state convention as a delegate

See paid sick leave laws in the US for the states that do mandate sick leave, and jury duty laws in the US for court leave.

PTO Payout and Final Paychecks

Under the Texas Payday Law, TWC states that "Final payment is due within six (6) calendar days of the last day" for an employee who is discharged, and "Final payment is due on the next regularly scheduled payday after the effective date of resignation" for an employee who quits. Unused vacation or PTO must be paid out only if a written policy or agreement provides for it; Texas does not require payout by statute. Our PTO payout laws by state guide has the details.

Pay frequency: employees exempt from federal overtime must be paid at least monthly, and everyone else at least twice a month, with semimonthly periods that "contain as nearly as possible an equal number of days." Deductions require a court order, a state or federal law, or the employee's written authorization for a lawful purpose; employers may not withhold final pay to recover unreturned equipment without that authorization. Wage claims must be filed with TWC within 180 days of the missed payday.

Exempt vs Non-Exempt Employees

Texas uses the federal tests. An employee is exempt from overtime only if paid on a salary basis of at least $684 per week ($35,568 a year) and primarily performing executive, administrative, professional, computer, or outside sales duties. Paying a salary does not by itself create an exemption; a salaried contact-center agent who spends the day handling calls is non-exempt and owed overtime. Our exempt vs non-exempt employees guide and the FLSA exemption flowchart walk through the duties tests.

Child Labor Rules

The Texas Child Labor Law, enforced by TWC, sets a minimum age of 14 with narrow exceptions for performers, newspaper delivery, and family agriculture. TWC states that 14 and 15 year olds "Can work no more than 8 hours in one day," "no more than 48 hours in one week," "Cannot go to work before 5 a.m.," and "Cannot work after 10 p.m. on a day that is followed by a school day," or past midnight before a non-school day. The federal rule is stricter during school and applies to almost every employer.

Age group	State limit	Federal limit (FLSA-covered employers)	Other rules
14 and 15	8 hours a day, 48 a week; not before 5 AM; not after 10 PM before a school day	3 hours on a school day, 18 in a school week; 8 and 40 otherwise; 7 AM to 7 PM (9 PM June 1 to Labor Day)	Hardship exemption possible under TWC rule 817.22
16 and 17	No hour or time-of-day limits	No hour limits; hazardous occupations prohibited
Under 14	Prohibited except performers, newspaper delivery, and agriculture outside school hours		TWC authorization for child actors

See child labor laws in the US for the federal hazardous occupations list.

Other Texas Employment Rules

• Payday notice. Employers must post notices of paydays where employees can see them and pay on the designated days.
• Local ordinance preemption. HB 2127 (2023) bars cities from regulating private employment terms such as breaks, scheduling, and paid leave beyond state law.
• E-Verify. Not required for private employers; only state agencies and their contractors must use it.
• Non-competes. Enforceable if ancillary to an otherwise enforceable agreement and reasonable in time, geography, and scope; physician non-competes carry special limits.
• Drug testing. Permitted; employers with 15 or more employees that carry workers' compensation must adopt a written drug abuse policy.
• Right to work. Union membership cannot be a condition of employment.

Hiring, Termination, and Record-Keeping

Texas is a strong at-will state; the main exceptions are discrimination, retaliation for filing a workers' compensation claim, refusal to commit an illegal act, and jury service. The Texas Workforce Commission Civil Rights Division enforces the state anti-discrimination law, which covers employers with 15 or more employees. Employers may ask about criminal history at any stage under state law, although some city rules for city contractors go further.

Keep payroll records showing hours worked and wages paid for at least 3 years under the FLSA, and keep the written authorizations for any deductions. Post the federal and Texas Payday Law notices. Because wage claims turn on proof of hours, a time card calculator for audits and a written timekeeping policy that explains punches, rounding, and corrections give employers the records TWC will ask for.

Frequently Asked Questions

Is Texas an at-will state? Yes. Either side may end employment at any time for any lawful reason, with exceptions for discrimination, retaliation, and refusing to break the law.

Does Texas require lunch breaks? No. Texas has no meal or rest break law for adults; breaks of 20 minutes or less must be paid if given, under federal rules.

When is overtime paid in Texas? After 40 hours in a workweek at 1.5x, under the federal FLSA. There is no daily overtime in Texas.

When is the final paycheck due in Texas? Within 6 calendar days of discharge, or on the next regular payday after a resignation.

Does Texas have paid sick leave? No. There is no statewide requirement, and city ordinances on paid leave are preempted by state law.

What is the minimum wage in Texas? $7.25 an hour, the federal rate, with a $2.13 tipped cash wage.

How many hours can a minor work in Texas? State law caps 14 and 15 year olds at 8 hours a day and 48 a week, but the federal limit of 3 hours on a school day and 18 in a school week applies to most employers. 16 and 17 year olds have no hour limits.

Does Texas pay out unused PTO? Only if a written policy or agreement requires it.

Sources

• Texas Workforce Commission: Texas Payday Law
• Texas Workforce Commission: Texas Child Labor Law
• Texas Workforce Commission: Texas Minimum Wage Law
• US Department of Labor: State Minimum Wage Laws