Texas Employment Contract Law

Texas Employment Contract Law: What You Need to Know

When it comes to employment contracts, it’s important to understand the laws and regulations that govern them. In Texas, there are specific laws that dictate how employment contracts are enforced and what they can and cannot include.

At-will Employment

Texas is an “at-will” state, which means that employment is presumed to be at-will unless there is a contract stating otherwise. This means that an employer can terminate an employee for any reason, as long as it is not discriminatory. Employees also have the right to quit their job for any reason, without notice.

Non-Compete Agreements

While non-compete agreements are common in many employment contracts, Texas has specific laws regulating their use. Non-compete agreements must be reasonable in duration, geographic scope, and activity restricted. This means that they cannot be so restrictive that they unfairly limit an employee’s ability to find work in their field.

Additionally, non-compete agreements must be supported by consideration, meaning that the employee must receive something in exchange for agreeing not to compete. This could include access to confidential information or trade secrets, specialized training, or a monetary payment.

Wage and Hour Laws

Texas also has specific laws governing wages and hours worked by employees. Employers must pay their employees at least minimum wage, which is currently $7.25 per hour. Overtime pay must also be provided for any hours worked over 40 in a single workweek, unless the employee is exempt from overtime pay.

Employers must also maintain accurate records of all hours worked by their employees, including breaks and meal times. Failure to comply with wage and hour laws can result in legal action and fines.


Understanding Texas employment contract law is crucial for both employers and employees. At-will employment, non-compete agreements, and wage and hour laws are just a few of the key considerations. By staying up-to-date on the laws and regulations, employers can ensure that their contracts are legally enforceable, and employees can protect their rights and interests.