A Texas employment contract establishes a working relationship between an employer and an employee. It details elements such as how much the employee will be paid, the employee’s job responsibilities, duration of employment, and any additional provisions the employer may want to include, such as a confidentiality clause.
In Texas, all contracts are governed by common law, meaning that all these documents must contain mutual assent, a valid offer, valid acceptance, adequate consideration, capable parties, and legality [1] .
- Laws: Labor Code
- Definition of Employee: According to TX Lab Code § 21.002, an employee is an individual employed by an employer. This definition includes individuals who are subject to the civil service laws of Texas or a political subdivision of the state. It excludes individuals elected to public office or a political subdivision in Texas.
By Type
Independent Contractor Agreement
Defines a working relationship between an independent contractor and a client.
Non-Compete Agreement
Protects a business by preventing an employee from completing work for a competitor.
Hiring in Texas
You need to know the Texas labor laws and regulations before moving forward with your Texas employment contract.
At-Will Employment
Texas is an at-will employment state. There are also exceptions to the at-will employment rules.
Exceptions
- Public Policy: Yes
- Implied Contract: No
- Good-Faith Exception: No
Minimum Wage ($/hr)
Texas doesn’t have a state-specific minimum wage, so employers must pay their employees the current federal minimum wage of $7.25/hour [2] .
Child Labor
For minors to work under Texas law, employment certificates are not required. Age certification is also not required. However, on request, an age certificate must be provided for minors under 18.
It’s illegal to employ a child under the age of 14 in Texas unless it’s within the entertainment industry and the parent has obtained authorization from the Texas Workforce Commission. 14- and 15-year-olds are prohibited from working in dangerous occupations, such as demolition, repair, warehousing, and mining [3] .
Payday
Employees exempt from the overtime provisions of the federal Fair Labor Standards Act must be paid at least once a month in Texas. Other employees must be paid at least twice a month.
Meal and Rest Breaks
Texas does not require minimum paid rest or meal periods.
Recordkeeping Requirements
Employers must retain employees’ payroll records and unemployment records for at least four years [4] . Some other recordkeeping requirements Texas employers should know include the following:
- Discrimination Reports: 1 year.
- Safety and Health/Workers’ Compensation: 5 years for injury records, 5 years for hazard communication training, 30 years for hazardous chemicals.
Sample
Download a Texas employment contract template below in PDF or Word format.
