Texas Labor Management QA

Email: hou4ww@evershinecpa.com
or

Contact by phone in the Texas time zone:
The Engaging Manager Ian Lin, a well-English speaker
Tel: +1-510-996-2685

LRC – United States – Texas Labor Regulations

LRC-CA-20.10
What must be included in the contents of a labor contract in the United States – Texas?

Evershine RD:

Federal

There are no minimum requirements for an employment contract.
There is no standard form because they are purely private arrangements.

States – Texas

Texas laws leave it largely up to employers and employees to work out what the pay or compensation agreement will be.

LRC-CA-20.11
Do the United States – Texas arrange labor contracts in a fixed term?
What should be the length of the labor contract in the United States – Texas?

Evershine RD:

Federal

No legal provision governs fixed or unlimited term contracts.
Generally, where no definite period of employment is stated or proved, the employment is presumed to be at-will, meaning that either party may terminate the employment at will, without liability for breach of contract.
The majority of employees in the United State are employed on an “at-will” basis.
Yes. the USA does not limit the duration of a fixed-term employment contract.

States – Texas

A labor contract can be arranged for any specific period or term.
When the employment is about to ends, it can be extended or renewed.

LRC-CA-20.20
What is the minimum age for hiring new employees in the United States – Texas?

Evershine RD:

Federal
Generally, the FLSA sets 14 years old as the minimum age for employment and limits the number of hours worked by minors under the age of 16.

States – Texas
The employment of minors aged 14 to 17 can be restricted in hazardous occupations.
Minors aged 14 to 15 can’t work more than eight hours in a day or 48 hours in a week.
Employers generally can’t employ minors under age 14.

LRC-CA-20.40
Is it a requirement for employer in the United States – Texas to conduct a pre-employment background check?

Evershine RD:

Federal

Background check is common in the United States.
When running the background checks, you must comply with the Fair Credit Reporting Act (FCRA).
The Federal Trade Commission (FTC) enforces the FCRA.
The FCRA requires employers to obtain permission from candidates to conduct a background check in writing.
To verify employment eligibility, employers and employees must complete the appropriate sections of Form I-9.
As part of the verification process, employers must receive documents from employees that establish their identity and employment eligibility as listed on Form I-9.

States – Texas

Pre-employment tests or examinations must be job related and non-discriminatory, i.e., required of all applicants in that job category.
Employers may not insist on a medical examination, other than drug testing, as a prerequisite to an offer of employment, with few exceptions.
The ADA and the Equal Employment Opportunity Commission (EEOC) prohibit such examinations or medical inquiries at the initial stage of the hiring process.

However, employers may conduct medical examinations after an offer of employment has been made.
Texas law permits employers to obtain information regarding a prospective employee’s criminal history.
This information is readily available for a small fee from the Texas Department of Public Safety.

LRC-CA-20.50
Is the Non-Competition indemnity clause in labor contract in the United States – Texas has legal effect?

Evershine RD:

Federal

A covenant not to compete will be enforced only if it restricts the employee’s ability to compete no more than is reasonably necessary to protect the employer’s legitimate interests.
Although covenants not to compete are generally disfavored by the courts, they will be enforced in most states if the covenant not to compete is designed to “protect against … ‘unfair and illegal’ conduct” on the part of the former employee and not simply “to insulate the employer from the competition.”

States – Texas

Under Texas law, non-competition clauses are subject to certain restrictions and must be reasonable in scope, time, and geographical area.
Covenants not to compete are relatively disfavored in Texas, as they are regarded as restraints to free trade and enterprise.
These agreements must satisfy several requirements to be enforceable.

LRC-CA-40.05
What are the regulations on Gender Discrimination in employment specifically for female workers in the United States – Texas?

Evershine RD:

Federal

An employment policy or practice that applies to everyone, regardless of sex, can be illegal if it has a negative impact on the employment of people of a certain sex and is not job-related or necessary to the operation of the business.
Sex discrimination prohibited by Title VII of the Civil Rights Act of 1964 includes discrimination “on the basis of pregnancy, childbirth, or related medical conditions,” under the 1978 Pregnancy Discrimination Act (PDA).
The law forbids discrimination when it comes to any aspect of employment, including hiring, firing, pay, job assignments, promotions, layoff, training, fringe benefits, and any other term or condition of employment.

States – Texas

The law forbids discrimination when it comes to any aspect of employment, including hiring, firing, pay, job assignments, promotions, layoff, training, fringe benefits, and any other term or condition of employment.

LRC-CA-50.10

Can the employer in the United States – Texas collect, or process data transmitted by employees over the internet?

Evershine RD:

Federal

The Stored Communications Act (“SCA”) generally prohibits accessing the online account of another without that individual’s consent.
You are permitted to monitor your employees’ email and internet use; however, before you conduct electronic monitoring, you should be sure to comply applicable federal and state laws.
To reduce the risk that you will be sued by your employees because you monitor their email and internet use, you should have an electronic communications policy in place at all your worksites.
The policy should clearly specify employees’ obligations when using your electronic communications systems, including desktop or laptop computers, personal digital assistants, pagers, and cell phones.
Requiring your employees to sign acknowledgments that they have read, understood, and agree to comply with the policy is another step you can take to reduce the risk of litigation.
You also should conduct training sessions for your employees to review the electronic communications policy and discuss hypothetical situations that could arise for employees at your company.

States – Texas

With the right kind of policy, employers have the right to monitor employees’ use of e-mail, the Internet, and company computers at work.
Every employer needs to have a detailed policy regarding use of company computers and resources accessed with computers, such as e-mail, Internet, and the company intranet if one exists.
Each employee must sign the policy – it can be made a condition of continued employment.

LRC-CA-60.10
What are the regulations on working hours in the United States – Texas?

Evershine RD:

Federal

There is no general maximum number of hours workers can be allowed to work under federal law.
Workers in several types of industries, such as long-haul freight truck drivers, have daily hour restrictions set for safety purposes.
In many organizations, employees are required to work 40 hours per week, with workdays beginning at 9 a.m. and ending at 5 p.m.

States – Texas
For general workforce, there are no state laws in place for work hours of adults aged 16 and older.

LRC-CA-60.30
What are the regulations on overtime hours in the United States – Texas?
What is the overtime premium rate in United States – Texas?

Evershine RD:

Federal

The federal Fair Labor Standards Act establishes overtime requirements that apply to covered employers.
Generally, employers that are subject to the FLSA must ensure that nonexempt employees receive additional overtime wages for any hours that nonexempt employees work more than 40 hours per workweek.
Overtime rate equals regular rate plus one-half regular rate (1.5 times).
Under the FLSA, employers must pay nonexempt employees one and one-half times their regular rate of pay for all time worked more than 40 hours during any workweek, referred to as overtime pay.

States – Texas

Texas has no overtime law.
Federal overtime requirements apply to workers in the state.
Overtime be paid for every hour worked past the 40-hour mark in a single 7-day workweek.
The rate must be 1.5 times the regular received rate of pay.

LRC-CA-60.50
Is it common to pay 13^th month’s salary in the United States – Texas?

Evershine RD:

Federal

13^th month’s salary is not mandatory in the United States.

States – Texas

There are no mandates for 13th month pay in the United States.

LRC-CA-70.10
What are the regulations on general leave policy for employees in the United States – Texas?

Evershine RD:

Federal
There is no federal requirement to provide paid leave to workers.
In practice, 1 week per year during the first few years to 3 weeks or more for long-serving employees.

States – Texas

Earned Paid Leave

Texas doesn’t have a law requiring earned paid leave that applies generally to private employers.
However, employers that choose to provide personal leave are subject to certain requirements.

LRC-CA-70.20
What are the public holidays in the United States – Texas?
What is the overtime premium rate during public holidays in the United States – Texas?

Evershine RD:

Federal

The U.S. has 11 national holidays.

• Jan. 1: New Year’s Day
• Martin Luther King’s Birthday (the third Monday in January)
• George Washington’s Birthday (the third Monday in February)
• Memorial Day (the last Monday in May)
• June 19: Juneteenth
• July 4: Independence Day
• Labor Day (the first Monday in September)
• Columbus Day (the second Monday in October)
• Nov. 11: Veterans Day
• Thanksgiving Day (the third Thursday in November)
• Dec. 25: Christmas Day

No overtime pay is required if work on holidays and weekends falls within regular work schedule and total hours do not exceed 40 in a workweek.
Overtime rate equals regular rate plus one-half regular rate (1.5 times).

States – Texas

• Jan. 19: Confederate Heroes’ Day
• Mar. 2: Texas Independence Day
• Apr. 21: San Jacinto Day
• June. 19: Emancipation Day
• Aug. 27: Lyndon Baines Johnson Day
• Dec. 24: The Day before Christmas Day
• Dec. 26: The Day after Christmas Day

There are no state laws governing paid holidays and is left to the employer’s discretion.

LRC-CA-70.30
What is the maternity leave policy for female employees in the United States – Texas?

Evershine RD:

Federal

The Family and Medical Leave Act (FMLA) applies to companies with 50 or more employees.
These employers must provide an eligible employee with up to 12 weeks of unpaid leave each year for any of the following reasons:

• For the birth and care of the newborn child of an employee
• For placement with the employee of a child for adoption or foster care
• To care for an immediate family member (i.e., spouse, child, or parent) with a serious health condition or
• To take medical leave when the employee is unable to work because of a serious health condition.

Employees are eligible for leave if they have worked for their employer at least 12 months, at least 1,250 hours over the past 12 months.

States – Texas

Texas doesn’t have state-specific laws regarding maternity leave.
However, under the FMLA, all eligible parents can take up to 12 weeks of unpaid leave.
It can start before baby is born but cannot extend beyond 12 weeks.

LRC-CA-70.40
What is the paternity leave policy for male employees in the United States – Texas?

Evershine RD:

Federal
FMLA applies to companies with 50 or more employees.
These employers must provide an eligible employee with up to 12 weeks of unpaid leave each year for a newborn, newly adopted child, or an ill family member.
Employees are eligible for leave if they have worked for their employer at least 12 months, at least 1,250 hours over the past 12 months.

States – Texas
Texas doesn’t have state-specific laws regarding paternity leave.
However, under the FMLA, all eligible parents can take up to 12 weeks of unpaid leave.
It can start before baby is born but cannot extend beyond 12 weeks.

LRC-CA-70.50
What are the provisions on sick leave, bereavement leave and personal leave for employees in the United States – Texas?

Evershine RD:

Federal

Sick Leave

Federal law does not require sick leave.
FMLA applies to companies with 50 or more employees.
A federally mandated unpaid leave program, the Family Medical Leave Act (FMLA), requires employers to allow workers to take up to 12 weeks off generally to deal with certain personal qualified medical issues or qualified medical conditions of defined family members.

Bereavement Leave

Federal law does not require funeral leave.
These benefits are generally a matter of agreement between an employer and an employee.
Most employers grant 3 to 5 days of bereavement leave per occurrence.
Some employers grant longer periods of leave for immediate family members—such as a parents, spouses, children, or siblings—and shorter periods of leave for more distant relatives.

Personal Leave

Federal law does not require personal leave.
These benefits are generally a matter of agreement between an employer and an employee.

States – Texas

Sick Leave
There is no Texas state law requiring private sector employers to provide employees sick leave, paid or unpaid.

Family and Medical Leave
The family and medical leave provisions are part of Texas fair employment practices law.
If employers administer a leave policy that allows employees to take personal leave to care for or otherwise assist their sick child, the policy must treat an employee’s foster child the same way as an employee’s biological or adopted minor child if the foster child:

•  resides in the same household as the employee; and
•  is under the conservatorship of the Texas Department of Family and Protective Services.

Vacation and Personal Leave
Vacation or holiday time off is not required by law, but it would be very difficult to hire or retain good employees without it.
Most companies consider it a good business practice to provide some paid vacation and to recognize some paid holidays.

LRC-CA-70.60
What are the regulations on pension benefits and social security insurance benefits for employee in the United States – Texas?

Evershine RD:

Federal

United States law provides for retirement benefits and subsidized health insurance under federal Social Security and Medicare programs.
These federal programs provide benefits for retirees, the disabled, and children of deceased workers.
Social Security benefits include old-age, survivors, and disability insurance. Medicare provides hospital insurance benefits.

States – Texas

The State of Texas retirement plan is mandatory for most state agency employees and provides a lifetime annuity when they retire.
The Texas Unemployment Compensation Act (the TUCA) provides that covered employers must pay taxes into as state fund for later disbursal as unemployment benefits to qualifying employees. TUCA is administered by the Texas Workforce Commission.

LRC-CA-70.70
What are the regulations on Workers’ Compensation for employee in the United States – Texas?

Evershine RD:

Federal
All employees are covered by employer’s workers’ compensation policy.
Employer pays the full cost to provide workers’ compensation coverage.

States – Texas

Workers’ compensation coverage in Texas is voluntary for most employers.
Employers that choose to carry workers’ compensation coverage for on-the-job injuries and occupational diseases that result in total or partial incapacity or death can obtain policies through private insurance companies, the state fund, or self- insurance programs.
Minors are covered under the law; independent contractors and their employees are not covered.

However, hiring contractors can enter into an agreement with their independent contractor allowing the hiring contractors to withhold the cost of workers’ compensation insurance from the contract price and stipulating that, for workers’ compensation purposes only, the hiring contractor is the employer of the independent contractor and its employees.
Sole proprietors, partners in a business, or corporate executive officers who elect to provide workers’ compensation insurance are entitled to workers’ compensation benefits unless specifically excluded under the policy or if a corporate officer has an equity ownership in the covered entity of at least 25%.
Licensed real estate salespersons and brokers compensated by commission are not covered; however, employers that elect insurance can include such employees.
Employees can reject workers’ compensation coverage, provided they submit such rejection in writing.

LRC-CA-80.05
Can the employee in United States – Texas join labor union?

Evershine RD:

Federal
Under the National Labor Relations Act, employees have the right to self-organize; form, join, or assist unions.

States – Texas
Skilled labor employees in a particular industry may elect to join as a trade union and collectively negotiate the terms of their employment contracts.

LRC-CA-80.06
How to handle labor dispute in United States – Texas?

Evershine RD:

Federal

The most widely used forms of alternative dispute resolution are negotiation, mediation, and arbitration.
Typically, if you can’t resolve a dispute through direct talks with the other side, you can turn to mediation, in which a neutral third party helps you reach a settlement that’s mutually agreeable to both you and the other party to the dispute.
If mediation fails and the contesting parties can’t decide on their own, you can seek arbitration, in which an arbitrator hears both sides of the dispute and decides for the parties, keeping in mind fairness, contractual obligations, and the law.

States – Texas

Mediation is an alternative dispute resolution process that is voluntary, confidential, and efficient method to help parties resolve their employment disputes through a mutual agreement.
TWC Civil Rights Division mediators are specially trained to resolve equal employment opportunity complaints.
Successful mediation result in the early closure of the dispute and eliminates the need for an investigation.
A written signed agreement reached during mediation is enforceable in court.

LRC-CA-90.10
What are the regulations on workplace safety and health for employee in United States – Texas?

Evershine RD:

Federal

The Occupational Safety and Health Act (“OSHA”) requires employers to provide employees with a safe and healthy place of employment.
Workplace safety policies should include:

•  company goals, such as complying with applicable law or striving to eliminate workplace injuries
•  management commitment, including allocation of sufficient resources and participation in safety program activities
•  ways to encourage employee participation in workplace safety programs
•  outlines of employee responsibilities, such as wearing required protective equipment
•  procedures for analyzing the worksite for hazards and conducting initial and regular audits
•  provisions for posting safety-related information
•  accident investigation procedures
•  measures for preventing, controlling, and reporting hazards; and
•  safety training

The federal Occupational Safety and Health Act has no requirement that all employers adopt formal safety and health policies, although specific standards require certain employers to implement written programs outlining emergency action plans, chemical and hazard communication, energy control procedures, and similar safety training efforts.

States – Texas

All employers in Texas are subject to the provisions of the federal OSHA.
Texas law prohibits smoking or possession of a burning cigarette in a public place.
Employers may choose to designate all or part of their place of business as non-smoking.
The Texas Hazard Communication Act (the THCA) requires employers to inform their employees of the effects and dangers of potential exposure to hazardous chemicals while working.

LRC-CA-100.10
What are the circumstances that an employer can terminate an employee in United States – Texas?

Evershine RD:

Federal
Employer or the employee may terminate the employment relationship at any time, for any (non-discriminatory or non-retaliatory) reason with or without notice.

States – Texas

Texas is an “at-will employment” state, which means that you can fire an employee for any legal, non-discriminatory reason.
To defend against the discrimination claims is to demonstrate that there was a legitimate non-discrimination reason for the termination.
Terminations based on the employee’s “annoying personality” or “inability to fit in” can be very hard to justify in the face of a discrimination claim.

LRC-CA-100.11
What is the notification period for terminating an employee in United States – Texas?
How much is the severance pay?

Evershine RD:

Federal

U.S. law does not impose a formal “notice period” to terminate an individual employment relationship. Most employees are employed “at-will” and either party can terminate the employment relationship without notice.
The WARN Act notices must be given at least 60 calendar days prior to plant closings or mass layoffs.
Severance pays, compensation paid to an employee upon termination from employment, is not required by federal law.
There is no requirement in the Fair Labor Standards Act (FLSA) for severance pay.
However, employers are required to provide severance pay if stipulated in a contract, such as an employment contract.
Many employers offer severance pay to provide a source of income to involuntarily terminated employees.

In addition to involuntary terminations, some employers provide severance pay to employees whose employment is terminated voluntarily to secure certain promises from departing employees, such as waivers of claims or enforcement of noncompetition and other employment agreements.
Employers sometimes provide severance as a supplement to state unemployment insurance benefits.

States – Texas

No advance notice of termination or resignation is required.
If advance notice of resignation is given, it can be accepted, rejected, or modified by the employer.
If a notice period is rejected, the employer does not have to pay for the time not worked by the employee, since the duty to pay ends on the date the work separation becomes effective.
Only a written severance pay obligation is enforceable under the Texas Payday Law.
TWC’s Labor Law Department will enforce whatever severance payment interval and conditions are set forth in the written policy or agreement creating the obligation to make the payment.

In an offer letter, the employer promises the offeree 3 months’ severance pay if the employee’s job comes to an end for reasons other than “misconduct”, and the letter prescribes the payment intervals as one-third 30 days after the last day of work, the second third 60 days out, and the final third 90 days following the date of the work separation, then the employer will be expected to pay the severance pay in the specified amounts at 30-day intervals for the 90 days following the last day of work, as long as the facts show that the employee resigned, was laid off for economic reasons, or the work came to an end for any reason other than misconduct on the ex-employee’s part.

LRC-CA-100.12
What is the reporting requirement for employer in the United States – Texas to notify the termination of employees to the competent authority?

Evershine RD:

Federal

Terminations that are the result of a plant closing or a mass layoff trigger special notice obligations to unions under the federal Worker Adjustment and Retraining Notification (WARN) Act.
In those circumstances, the WARN Act requires an employer to provide at least 60 days’ notice to the chief elected officer of the exclusive representatives or bargaining agencies of affected employees.

States – Texas

If you have more than 100 employees, you may be required to comply with the Federal Worker Adjustment and Retraining Notification Act under some circumstances.
IF WARN applies, the affected employees are entitled to receive at least 60 days’ notice of the layoff.
The employer also must give notice to the state’s dislocated worker unit and the chief elected official of the local government.
WARD applies when:

1. a work location is being closed and 50 or more employees will lose their jobs.
2. more than 500 employees will lose their jobs during 30-day period.
3. more than 50 workers comprising at least 33% of the workforce will lose their jobs.

LRC-CA-100.20
What are the regulations on mass layoffs in the United States – Texas?

Evershine RD:

Federal

The federal Worker Adjustment and Retraining Notification Act of 1988 requires employers to provide advance notice of plant closings and mass layoffs to employees or their union representatives, state dislocated worker units, and local government officials.
In general, the WARN Act applies to private employers with 100 or more employees and requires notice at least 60 days prior to qualifying layoffs and closings.

Employers are covered under the WARN Act if they have:

•  100 or more full-time employees; or
•  100 or more full- and part-time employees who work a combined total of at least 4,000 hours per week, excluding overtime.

The WARN Act applies to:

•  plant closings that cause employment loss to 50 or more full-time employees during any 30-day period.
•  mass layoffs that cause employment loss to 50 or more full-time employees and at least 33 percent of full-time employees during any 30-day period.
  If 500 or more full-time employees are affected by a mass layoff, the 33 percent requirement doesn’t apply; and
•  plant closings or mass layoffs that affect two or more groups of employees at a single site of employment within any 90-day period where the groups of employees individually don’t meet the minimum employee threshold for the WARN Act notice but added together exceed that threshold, unless employers demonstrate that the group terminations are for separate and distinct reasons and aren’t attempts to evade the WARN Act requirements.

States – Texas

In Texas, employees are only covered under the federal Worker Adjustment and Retraining Notification Act during plant closures and layoffs, as there is no state law.
Under this act, employers must give employees at least 60 days’ notice before mass layoffs or plant closures occur.

LRC-CA-100.30
What is the time limit for employer in United States – Texas to pay employees upon termination?

Evershine RD:

Federal
Federal law generally doesn’t govern final wage payments, but many states have requirements about the timing and calculation of those payments.

States – Texas

Employers must pay wages no later than 6 days after discharging employees.
Employers must pay wages no later than the next regular payday to employees who quit.

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E-mail: hou4ww@evershinecpa.com
or

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Tel: +1-510-996-2685

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