Legal Templates

Texas Employment Contract Template

A Texas employment contract is a legally binding document that creates an employment relationship and defines an employee’s job duties, work hours, benefits, compensation, and paid time off. It adheres to Texas labor laws, which ensure both parties uphold their employment-related duties and safeguard their rights.

Updated January 15, 2025
Written by Sara Hostelley | Reviewed by Brooke Davis

Table of Contents

What Is Texas Employment Contract Law?

Texas employment contract law is outlined in the Texas Labor Code. [1] This code outlines the guidelines for employer-employee relations and provides employee protections. It also discusses topics like employment services, unemployment, and worker’s compensation.

The labor code also provides clarity on the definition of an employee. Per Texas Lab. Code § 21.002, [2] an employee is an individual employed by an employer. This definition includes individuals 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. Knowing this definition helps you determine if you need an employment contract or another agreement.

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.

texas independent contractor agreement

Independent Contractor Agreement

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

Texas Subcontractor Agreement Template

Subcontractor Agreement

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

Texas Non-Compete Agreement Template

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.

Texas Non-Disclosure Agreement Template

Non-Disclosure Agreement

Useful when sharing sensitive company information with an employee.

Do I Need an Employment Contract in Texas?

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.

Is Texas an At-Will Employment State?

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.

What Is the Minimum Wage in Texas?

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.

What Child Labor Laws Does Texas Have?

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.

Are Teachers in Texas Subject to Specific Employment Laws?

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.

Texas Employment Contract Sample

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.

Texas-Employment-Contract-Template

Frequently Asked Questions

Does Texas law require employers to provide meal or rest breaks?

No, Texas law does not require employers to provide unpaid or paid meal or rest breaks.

If an employer chooses to provide a break that lasts less than 20 minutes, federal law requires the employer to pay the employee for it. Breaks lasting at least 30 minutes do not need to be paid.

How often must Texas employees be paid?

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.

How long must employers retain employees’ payroll records?

Employers must retain employees’ payroll records and unemployment records for at least four years.

Legal Templates uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial guidelines to learn more about how we keep our content accurate, reliable and trustworthy.

  1. Texas Labor Code. https://statutes.capitol.texas.gov/docs/sdocs/laborcode.pdf
  2. Texas Labor Code § 21.002. https://statutes.capitol.texas.gov/docs/LA/htm/LA.21.htm#21.002
  3. Texas Child Labor Law. https://www.twc.texas.gov/programs/wage-and-hour/texas-child-labor-law
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Texas Employment Contract Template

The document above is a sample. Please note that the language you see here may change depending on your answers to the document questionnaire.

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