Texas law does not require you to have an employee handbook, but if you publish one it must include an at-will employment disclaimer, and the Texas employee handbook requirements that follow from state and federal law effectively make the handbook the place where required written notices to employees live. That means pay terms under the Texas Payday Act, a workers’ compensation status disclosure, anti-discrimination and harassment procedures, accommodation policies, leave rights for covered employers, and break-time rules for nursing employees. What you put in matters, and so does what you leave out.
The At-Will Employment Disclaimer
Texas is an at-will state. Either you or your employer can end the relationship at any time, for any lawful reason, with or without notice.1Texas Workforce Commission. Pay and Policies – General The handbook should say so in plain terms near the front of the document.
Skip this and the handbook itself can be read as a contract. The Texas Supreme Court held in Federal Express Corp. v. Dutschmann that an express disclaimer in a handbook negates any implication that the handbook restricts the at-will relationship. Detailed policies on progressive discipline or termination procedure, without a disclaimer, can be treated as binding commitments.
An effective disclaimer states that employment is at will, clarifies that the handbook is not a contract, and reserves your right to change policies. Put it up front, and repeat it on the signed acknowledgment form. Burying it deep in a long document weakens the argument that employees were clearly informed.
Pay Information Under the Texas Payday Act
The Texas Payday Act requires you to give every new employee written notice of the rate of pay, pay period, designated payday, and the employer’s policy on discharge, and Texas law requires that notice in both English and Spanish.2State of Texas. Texas Labor Code Chapter 61 – Payment of Wages The handbook is the natural home for those disclosures. The bilingual requirement catches many employers off guard.
Paydays must also be posted conspicuously in the workplace.3State of Texas. Texas Code Labor Code 61.012 – Designation of Paydays Notice Spell out how wages are delivered (direct deposit, check, or paycard) and what happens when a payday falls on a holiday or weekend.
Violations carry an administrative penalty of up to $1,000 per violation, and the Texas Workforce Commission can collect unpaid wages through liens or bank levies.4Texas Workforce Commission. Texas Payday Law – Wage Claim
Workers’ Compensation Status
Texas is one of the few states where workers’ compensation insurance is optional for private employers, and because of that the disclosure duty is heavier. Under Texas Labor Code Section 406.005, every employer must tell each employee whether it carries coverage, post that status conspicuously, and give written notice to new hires at the time of hiring.5State of Texas. Texas Labor Code Chapter 406 – Workers Compensation Insurance Coverage If coverage is obtained or canceled, employees must be notified within 15 days.
The rules also dictate formatting. Posted notices must use specific font sizes (26-point bold title, 18-point bold subject lines, 16-point body) and must appear in English, Spanish, and any other language common to the workforce.6Legal Information Institute. 28 Texas Administrative Code 110.101 – Covered and Non-Covered Employer Notices to Employees The Texas Division of Workers’ Compensation publishes sample notices with prescribed language. Use them without modification.
If you carry coverage (a “subscriber”), the notice must tell employees they can elect to keep their common-law right to sue instead of accepting workers’ compensation benefits, and that the election must be made within five days of hire or five days of learning coverage exists.6Legal Information Institute. 28 Texas Administrative Code 110.101 – Covered and Non-Covered Employer Notices to Employees If you don’t carry coverage (a “nonsubscriber”), say so plainly.
The handbook should also tell employees they must report a work-related injury within 30 days under Texas Labor Code Section 409.001. That deadline applies whether or not you subscribe.
Anti-Discrimination and Harassment Policies
Federal law prohibits workplace discrimination based on race, color, religion, sex (including pregnancy, sexual orientation, and transgender status), national origin, age 40 or older, disability, or genetic information, for employers with 15 or more employees.7U.S. Equal Employment Opportunity Commission. Prohibited Employment Policies/Practices Texas Labor Code Chapter 21 mirrors those protections at the same 15-employee threshold and is enforced by the Texas Workforce Commission’s Civil Rights Division. Name the protected characteristics in the handbook and identify how employees can report a violation.
Harassment Complaint Procedures
A written anti-harassment policy is a legal shield. To avoid liability for a hostile work environment created by a supervisor, an employer generally must prove it took reasonable steps to prevent and correct the behavior and that the employee failed to use the available complaint process. Without a written complaint process, that defense collapses. The EEOC recommends stating clearly that harassing conduct is not tolerated, setting out a complaint procedure, and committing to immediate corrective action.8U.S. Equal Employment Opportunity Commission. Harassment
Provide at least two reporting channels so no one is forced to complain to the person harassing them. Name a specific person or department (HR, a compliance officer), and offer a second path such as a manager outside the employee’s chain of command or a dedicated hotline.
Disability, Pregnancy, and Religious Accommodations
Employers with 15 or more employees must provide reasonable accommodations for employees with disabilities under the Americans with Disabilities Act unless doing so would cause undue hardship.9U.S. Equal Employment Opportunity Commission. The ADA Your Responsibilities as an Employer Tell employees how to request an accommodation and who starts the interactive process.
The Pregnant Workers Fairness Act, effective in 2023, adds a separate obligation at the same 15-employee threshold for limitations related to pregnancy, childbirth, or related medical conditions. Covered employers cannot force an accommodation without the interactive process, deny job opportunities because of a need for accommodation, or require leave when another accommodation would work.10Office of the Law Revision Counsel. 42 USC 2000gg-1 – Nondiscrimination With Regard to Reasonable Accommodations Related to Pregnancy Address pregnancy accommodations alongside disability accommodations so employees understand these are separate, overlapping rights.
Title VII also requires reasonable accommodations for sincerely held religious beliefs that conflict with work requirements, unless the accommodation would create a substantial burden on the business. The EEOC has clarified that coworker objections and customer preferences do not count as undue hardship, and an employee does not need to submit a formal written request.11U.S. Equal Employment Opportunity Commission. Fact Sheet Religious Accommodations in the Workplace Including a religious accommodation statement signals the request will be taken seriously and gives employees a route to raise one.
FMLA Leave (If You Have 50 or More Employees)
If your company employs 50 or more people in 20 or more workweeks during the current or preceding calendar year, you are a covered employer under the Family and Medical Leave Act.12U.S. Department of Labor. Fact Sheet 28 – The Family and Medical Leave Act Eligible employees can take up to 12 workweeks of unpaid, job-protected leave in a 12-month period for the birth or adoption of a child, a serious health condition, or caregiving for a family member with a serious health condition.
Covered employers must include FMLA information in the employee handbook or other written materials about leave and benefits. The DOL requires that if a covered employer has any eligible employees, each one must receive a general notice with the same information as the FMLA workplace poster.13U.S. Department of Labor. Fact Sheet 28D – Employer Notification Requirements Under the Family and Medical Leave Act Posting alone is not enough if you also have a handbook covering leave.
Break Time and Space for Nursing Employees
The PUMP for Nursing Mothers Act requires employers to provide reasonable break time and a private space, other than a bathroom, shielded from view and free from intrusion, each time an employee needs to express breast milk, for one year after the child’s birth.14Office of the Law Revision Counsel. 29 USC 218d – Accommodations for Pregnant and Nursing Workers The PUMP Act covers nearly all employees, including agricultural workers, nurses, teachers, and drivers previously excluded under older rules.15U.S. Department of Labor. FLSA Protections to Pump at Work
Describe where the designated space is, how time is scheduled, and whether break time is paid or unpaid (non-exempt employees generally do not need to be paid for pump breaks that are completely off-duty). State plainly that retaliation for using the benefit is prohibited.
Overtime Classification
Non-exempt employees must receive overtime at one and a half times their regular rate for all hours worked over 40 in a workweek. That requirement cannot be waived by agreement, and compensatory time off cannot substitute for overtime pay in the private sector.16U.S. Department of Labor. FLSA Overtime Calculator Advisor for Nonexempt Employees
The handbook should explain which positions the company classifies as exempt and which as non-exempt. To qualify as exempt under the executive, administrative, or professional exemptions, an employee must earn at least $684 per week ($35,568 annually) and meet the DOL’s duties test for the specific exemption. Highly compensated employees must earn at least $107,432 per year.17U.S. Department of Labor. Earnings Thresholds for the Executive, Administrative, and Professional Exemptions Texas has no state overtime law, so the FLSA is the only framework that applies.
Handbook Rules That Can Violate the NLRA
Section 7 of the National Labor Relations Act gives employees the right to engage in concerted activities for mutual aid or protection, and the National Labor Relations Board has long read that to include discussing wages, hours, and working conditions with coworkers.18Office of the Law Revision Counsel. 29 USC 157 – Right of Employees as to Organization, Collective Bargaining These rights apply whether or not the workplace is unionized, and they cover most private-sector employees in Texas.
This is where handbooks quietly create liability. Policies that prohibit employees from discussing pay, broadly restrict social media posts about the company, or ban “negative” talk about management can violate Section 7 even if never enforced. Under the NLRB’s 2023 Stericycle decision, a rule that could reasonably be read as discouraging Section 7 activity is presumptively unlawful unless the employer proves the rule advances a legitimate business interest that cannot be achieved with narrower language.19National Labor Relations Board. Board Adopts New Standard for Assessing Lawfulness of Work Rules
Review confidentiality, social media, and workplace conduct policies with that standard in mind. “Employees may not share proprietary trade secrets or customer data” is fine because it targets genuinely confidential information. “Employees may not discuss internal company matters” is a problem because it sweeps in wage discussions and complaints about working conditions.
Voting Leave and Jury Duty
Texas requires you to give employees paid time off to vote on election days unless the employee already has at least two consecutive hours to vote outside of working hours, under Sections 276.001 and 276.004 of the Texas Election Code. State the right in the handbook and explain how to request the time.
Texas also prohibits terminating a permanent employee for serving on a jury. An employee fired for jury service can sue for reinstatement and recover between one and five years’ compensation. Acknowledge jury duty leave and explain whether employees will be paid during service, since the anti-termination protection exists regardless of pay policy.
The Handbook Does Not Replace Required Posters
A handbook does not satisfy the obligation to display required workplace posters. Texas employers must post notices covering unemployment insurance, workers’ compensation status, the Payday Act, and federal requirements including the FMLA and EEO posters. The Texas Workforce Commission maintains the list of required posters, all available for free download.20Texas Workforce Commission. Posters for the Workplace Some are required only above certain size thresholds, so check which ones apply to your workforce.
Distribution and Signed Acknowledgments
A handbook nobody has signed for is hard to enforce. The signed acknowledgment establishes that the employee received the document and understood they are responsible for following the policies. Keep signed acknowledgments in each employee’s personnel file.
Electronic signatures are valid for handbook acknowledgments under the federal Electronic Signatures in Global and National Commerce Act. If you use a digital portal, capture a clear record that the employee agreed to receive the handbook electronically, and keep that agreement separate from the acknowledgment itself. For paper distribution, have each employee sign a physical form when they receive the handbook.
When policies change, redistribute the updated handbook and collect new signatures right away. A three-year-old acknowledgment does not cover a policy added last month. Track total employee count regularly, because crossing 15 or 50 employees triggers new legal obligations that will require handbook updates.