Employment Law Updates in Texas: Recent Changes You Need to Know

Staying updated on employment law changes is essential for both employees and employers in Texas. These updates can impact workplace policies, employee rights, and employer obligations. In this article, we explore the latest changes to Texas employment laws and how they may affect you in 2025.

1. Expanded Paid Leave Policies

Recent legislative changes in Texas have expanded paid leave options for certain employees. Key updates include:

• Parental Leave: Eligible employees can now take extended paid parental leave, with updated eligibility criteria to include foster and adoptive parents.
• Sick Leave: Some municipalities, including Austin and Dallas, have introduced mandatory sick leave policies for private employers, requiring a minimum accrual of paid sick time.

Employers should update their leave policies to ensure compliance with these new regulations.

2. Minimum Wage and Overtime Adjustments

While the federal minimum wage remains unchanged at $7.25 per hour, certain cities and counties in Texas have implemented local minimum wage increases for government contractors and employees. Additionally:

• Overtime Rules: The Department of Labor (DOL) has raised the salary threshold for exempt employees, meaning more Texas workers are now eligible for overtime pay.
• Wage Transparency: Employers are encouraged to provide clear pay scales in job postings to meet compliance standards.

Both employers and employees should review these changes to avoid wage disputes.

3. Enhanced Workplace Harassment Protections

Texas has strengthened its workplace harassment laws to provide greater protections for employees. Key provisions include:

• Lowering the threshold for reporting harassment, allowing employees to report incidents sooner and with fewer barriers.
• Extending the statute of limitations for filing harassment claims under state law.

Employers must implement updated training programs to educate employees and supervisors about these new standards.

4. Updates to Independent Contractor Classification

The classification of independent contractors has become more stringent in Texas, aligning with federal guidelines. Employers must ensure that workers classified as independent contractors meet the necessary criteria, including:

• Freedom from employer control in performing their tasks.
• Engagement in an independently established trade or business.
• Performing work outside the usual course of the employer’s business.

Misclassification can lead to significant penalties, so proper classification is critical for compliance.

5. Increased Penalties for Workplace Safety Violations

The Occupational Safety and Health Administration (OSHA) has increased penalties for workplace safety violations in Texas. Employers must prioritize safety by:

• Conducting regular safety audits and training programs.
• Addressing hazards promptly to prevent accidents and injuries.
• Maintaining compliance with updated OSHA standards.

Failure to comply with these standards can result in costly fines and potential legal action.

6. Employee Privacy and Data Protection

With the rise of remote work, Texas has introduced new guidelines for employee privacy and data protection. Employers must now:

• Clearly communicate monitoring policies for remote employees.
• Ensure secure handling of employee data, including personal and financial information.
• Comply with federal and state data protection laws to avoid legal repercussions.

Employers should update their privacy policies to reflect these new requirements.

What Employers and Employees Need to Do

To adapt to these changes, both employers and employees should take proactive steps:

• For Employers: Review and update workplace policies, provide training on new laws, and ensure compliance with all applicable regulations.
• For Employees: Stay informed about your rights, review your employment contracts, and report any potential violations to the appropriate authorities.

Being proactive can help foster a fair and compliant work environment.

Conclusion

The recent updates to Texas employment laws in 2025 reflect an ongoing commitment to workplace fairness and safety. Whether you’re an employer striving to meet compliance standards or an employee seeking to understand your rights, staying informed is essential. By keeping up with these changes, you can ensure a fair and productive workplace for everyone.