Like the rest of Texas, a mix of federal, state and local rules shape employment law in Austin. For employers and employees, understanding the legal landscape is crucial for maintaining fair, lawful and productive workplaces. Here’s an overview of these laws and what they encompass.
Texas is an at-will employment state
Texas follows the “at-will” employment doctrine. This means that the employer or the employee may end the relationship at any time and for almost any reason, unless there is a specific agreement stating otherwise. However, at-will status does not override protections against discrimination or retaliation based on legally protected categories like race, gender, age or disability.
Anti-discrimination and harassment protections
Federal laws, such as Title VII of the Civil Rights Act and the Americans with Disabilities Act and state-level protections enforced by the Texas Workforce Commission, are in place to protect employee rights. Additionally, Austin has ordinances that go further, such as protections against discrimination based on sexual orientation and gender identity. Thus, employers must ensure that workplace policies align with both state and city standards.
Wage and hour rules
The Fair Labor Standards Act (FLSA) governs federal minimum wage and overtime rules. Texas mirrors the federal minimum wage of $7.25/hour as of writing, with limited exceptions. Aside from wage compliance, misclassifying employees as independent contractors is another common violation. If found guilty, it can lead to serious legal and financial consequences. The U.S. Department of Labor offers guidance on wage rules and employee classification to avoid these mistakes.
Workplace policies and employee rights
Written workplace policies benefit both the employer and the employee. Employers should have clear procedures for reporting grievances, anti-retaliation policies and documented job expectations. On the other hand, employees should know their rights to reasonable accommodations and protected leave under laws like the Family and Medical Leave Act (FMLA).
Employment law is complex and often changes. For employees and employers, staying informed and compliant with local, state and federal rules is essential. When conflicts or questions arise, consulting government resources can help. Additionally, asking the help of an employment attorney can provide clarity and prevent costly legal missteps.