Texas Employment Contract Template

In addition to employment contracts for W-2 employees, you may need templates for other workforce agreements, such as hiring independent contractors or protecting sensitive business information.

Independent Contractor Agreement

Lets a company hire a freelancers, consultants, and other non-employees.

Subcontractor Agreement

Allows a contractor to hire a subcontractor to assist them with a specific task within a larger project.

Non-Compete Agreement

Protects a business by preventing an employee from completing work for a competitor. Under Texas law, non-compete agreements must be reasonable. They may not be more restrictive than what's necessary to protect the employer's interests.

Non-Disclosure Agreement

Useful when sharing sensitive company information with an employee.

No, employees and employers don’t need to enter employment contracts to establish employment relationships in Texas. However, it’s common for them to do so; this way, each party is clear on the terms involved.

Yes, Texas is an at-will employment state. Employers don’t need to give a reason or notice to end an employment relationship.

Texas recognizes one exception to at-will employment, which is the public policy exception. The Texas Supreme Court case of Sabine Pilot Service, Inc. v. Hauck determined that an employee cannot be fired for refusing to do something illegal that could result in criminal charges.

Texas doesn’t recognize the implied contract or good-faith exceptions, while other states do. Texas is much stricter in its adherence to the at-will employment doctrine.

The current minimum wage in Texas is the same as the federal minimum wage of $7.25 per hour. The Texas Minimum Wage Act, which was enacted on July 24, 2009, decided to align with the federal minimum wage. The state’s minimum wage has remained unchanged since.

Within certain restrictions, employers can count tips and the value of lodging and meals toward the minimum wage.

The Texas Minimum Wage Act does not ban collective bargaining. Therefore, employees can join forces to negotiate with their employers for higher wages.

An employer can pay below minimum wage under certain conditions. For example, employees who are patients of the Texas Department of State Health Services may be allowed to receive less than minimum wage.

Do Some Cities in Texas Have Higher Wages?

Some cities in Texas have tried to implement higher wages at the local level. For example, the city of Austin has a higher living wage of $21.63 per hour for city employees only. Houston has discussed raising the living wage to $15 per hour, but it has not yet enacted this wage increase.

It’s illegal to employ a child under the age of 14 in Texas. However, a child under 14 can work within the entertainment industry if the parent gets permission from the Texas Workforce Commission. 14- and 15-year-olds cannot work in dangerous occupations, such as demolition and mining. [3]

Minors don’t need employment certificates to work under Texas law. State law also doesn’t mandate age certification. However, on request, an age certificate must be provided for minors under 18.

Yes, Texas law regulates teachers’ employment contracts. Chapter 21 of the Texas Education Code requires school districts to use one of the following documents for hiring teachers and related positions:

• term contract (for a specified period)
• continuing contract (for veteran teachers)
• probationary contract (for new teachers)

State law lays out the requirements for these contracts, including job descriptions and contract length. Teachers working for private schools aren’t subject to these requirements.

Legal Templates makes creating Texas employment contracts easy by allowing you to add contract-specific details, such as job responsibilities, compensation, and work hours. Our document builder includes Texas-specific provisions, ensuring compliance with state labor laws.

Depending on your needs, you can customize the contract with terms like at-will employment, non-compete clauses, or severance pay. Just enter the details for your business and employees, and our platform creates a legally sound contract that meets both your requirements and Texas regulations.

View an example of a Texas employment contract template. When you’re ready, you can fill out your own Texas-specific contract using our document builder.