Texas Labor Laws Compliance Guide 2024

Kaitlin Edwards | Mar 27, 2024

Texas Labor Laws Compliance Guide 2024

Maintaining compliance with Texas labor laws is the cornerstone of your business’s integrity and reputation. Adhering to these laws can be complicated for any organization, but especially those expanding or operating in multiple states.

The stakes are high: Non-compliance can lead to costly legal challenges and damage to a company’s standing. Enter Mosey, a revolutionary tool designed specifically for small to mid-sized businesses grappling with multi-state operations.

Mosey organizes, simplifies, and streamlines your business compliance obligations. From identifying requisite payroll accounts in various states to handling the nuanced layers of compliance, Mosey is your guide in labor laws. Read on to get started with Mosey and learn more about Texas labor laws.

What Are the Basics of Texas Labor Laws for Salaried Employees?

Following federal guidelines, Texas classifies salaried employees as those who receive a predetermined amount of compensation each pay period. This compensation is not influenced by the quality or quantity of work performed, providing a stable financial expectation for employees and employers alike.

However, this definition is just the starting point in understanding the broader context of labor laws affecting these employees. The landscape of Texas labor laws for salaried employees encompasses a variety of regulations.

These include but are not limited to, overtime pay requirements, minimum salary thresholds, and exemption criteria. While federal guidelines offer a framework, Texas-specific nuances add layers of complexity. For instance, Texas does not have a state-specific minimum wage law — hence, it defaults to the federal minimum wage rate.

Understanding these laws is critical for businesses to ensure compliance, fairness, and equitable employee treatment.

What Should Employers Know About Texas Salary Laws?

Understanding Texas salary laws is essential for businesses, especially those working directly with compensation regulations.

Here’s a breakdown of the critical aspects:

Overtime Rules and Exemptions in Texas

Texas adheres to the federal Fair Labor Standards Act (FLSA) for overtime provisions. Employees are entitled to overtime pay of one and a half times their regular rate for hours worked beyond 40 in a workweek.

That said, certain positions are exempt from these rules. These exemptions typically apply to executive, administrative, professional, outside sales, and some computer employees, provided they meet specific salary and duties tests.

Salary Thresholds in Texas

The salary threshold is a key component in determining exemption status. As of 2024, Texas follows the federal guideline, which requires a minimum salary of $684 per week ($35,568 annually) for most exempt employees. This threshold ensures that employees earning less are compensated for overtime, regardless of their job duties.

Frequency of Payments

The Texas Payday Law mandates that employers clearly define payday frequency. Employers can choose to pay employees weekly, bi-weekly, semi-monthly, or monthly.

However, non-exempt employees (those entitled to overtime) must be paid at least twice per month. This law ensures transparency and consistency in wage payments, contributing to a smoother employer-employee relationship.

Texas salary laws are designed to protect employees while providing clear guidelines for employers. Businesses must stay informed and compliant with these regulations to avoid legal pitfalls and foster a fair work environment.

Mosey can be instrumental in understanding state regulations, offering up-to-date information and automatic compliance assistance.

What Are the Mandatory Labor Law Updates in Texas?

Staying current with labor law updates is essential for businesses to ensure compliance and avoid penalties. Texas, like other states, periodically updates its labor laws.

Let’s take a moment to look over some of the most recent and significant changes as of 2024:

Reporting Workplace Violence (12/2023)

A new requirement mandates Texas employers to display a poster with hotline information for reporting workplace violence. It’s a move that underscores the state’s commitment to fostering safer work environments. Make sure your business follows this mandate.

Texas Payment Notice & Unemployment Compensation (05/2020)

The updated notice includes additional information on benefits eligibility, requirements for filing a claim, new contact and website information, and a revised date. It’s important for employers to display the latest version to keep employees informed about their unemployment rights.

Bilingual Notification of the Ombudsman Program (07/2018 & 08/2013)

These updates involve changes to contact information, the addition of a new logo, and website address modifications. The Ombudsman Program assists in workers’ compensation disputes, and these updates ensure that non-English-speaking employees have access to necessary information.

Workers’ Compensation Notices (02/2013)

The addition of Notices #7 and #10 for workers’ compensation emphasizes the state’s focus on informing employees about their compensation rights and procedures in case of workplace injuries.

Some of the federal labor law updates that are impacting Texas employers include:

  • EEOC Know Your Rights (06/2023 & 10/2022): Updated to make the laws more understandable to employees, including the addition of a QR code linking to discrimination charge filing instructions.

  • Fair Labor Standards Act - Federal Minimum Wage (05/2023): The revision under the PUMP Act clarifies employer obligations toward nursing mothers, ensuring they receive reasonable break time and accommodations.

With these updates, businesses in Texas face the ongoing challenge of staying compliant. Mosey is invaluable in this scenario, providing businesses with the latest legal updates and actionable steps to remain compliant.

What Are Federal and State Labor Law Posters?

Federal and state labor law posters are essential tools for informing employees of their rights and employers of their obligations.

Compliance in this area involves two key aspects:

Understanding Poster Requirements

Employers are mandated to display certain posters covering various topics, from minimum wage and workplace safety to anti-discrimination policies.

These posters must include the latest updates to federal laws like:

  • The Fair Labor Standards Act (FLSA)
  • The Occupational Safety and Health Act (OSHA)
  • The Family and Medical Leave Act (FMLA)

They must also include state-specific laws like the Texas Workers’ Compensation Program and the Texas Unemployment Compensation Act.

Displaying Posters Properly

Posters must be placed in conspicuous areas where they are easily visible to all employees, such as break rooms or other common areas. The goal is to ensure that every employee has access to this information regardless of their role or frequency in a particular area.

Skip the difficulty of finding and displaying posters for a distributed, remote workforce. Automate all of your state labor law notices and posters through Mosey and receive one link to publish for your team to view on an internal wiki.

What Are the Minimum Wage Laws in Texas?

The minimum wage is a fundamental aspect of employment law, impacting both employers and employees significantly.

Current Minimum Wage in Texas

As of January 1, 2024, the minimum wage in Texas is set at $7.25 per hour, which is in alignment with the federal minimum wage. This standard applies to most workers in the state, with some exceptions based on the type of employment or size of the business.

Implications for Businesses

Employers must adhere to this rate as the absolute minimum for hourly compensation. This is especially important for small businesses that operate on thin margins and must carefully balance payroll expenses. For employees, this wage sets the baseline for their earnings and can impact job satisfaction and financial stability.

Aligning with Federal Standards

Texas’s decision to match the federal minimum wage rate simplifies compliance for businesses operating in multiple states. It ensures a uniform wage base across state lines, reducing the complexity that can come from varying state minimum wage laws.

Tools like Mosey can be invaluable in helping businesses keep up with these requirements, offering up-to-date information and reminders about posting regulations and wage changes. By leveraging such tools, businesses can focus more on growth and less on the nuances of legal compliance.

Streamline Compliance With Mosey

Mosey is a must-have tool for businesses aiming to understand Texas labor law compliance. Our multifaceted compliance management platform offers a blend of technology and expertise, uniquely positioning it as a critical resource for employers.

With Mosey, you can benefit from automation capabilities that track changes in labor laws, ensuring businesses are always in step with the latest regulations. This automated vigilance is particularly beneficial for small to mid-sized businesses that may lack dedicated compliance teams.

Whether it’s about minimum wage adjustments, overtime rules, or poster requirements, Mosey provides nuanced advice that’s both accessible and relevant. Book your demo today for all this and more.

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