Texas Employee Handbook Requirements
All businesses in Texas should have an employee handbook that outlines workplace policies, clearly states employee benefits, and addresses all other state and federal workplace regulations.
The handbook isn’t just a guide for employees, either. It’s a tool for employers. Your employees will be aware of both state and federal laws as well as of company policies, which helps protect you if any issues arise. By demonstrating that your handbook offers all of the required information, you can show that you’re complying with the law.
Each year, there are changes made or added to labor laws throughout the country and the state of Texas. Keeping your employee handbook up to date is essential, so what changes should you add this year? Learn more about the latest Texas employee handbook requirements.
2025 Changes to Add to the Texas Employee Handbook
Texas employers need to be aware of a few key federal laws that have come into play this year. The Department of Labor has decided that employers can’t require employees to use available paid time off while taking on leave provided by the Family Medical Leave Act if the employee is also receiving assistance from a Texas family leave program.
Workplace violence policies are required to be enumerated in Texas now, which can be done via a poster and inclusion in the employee handbook. Other changes this year include adding AI policies and describing restrictions employees have regarding the use of company information on personal devices or personal accounts.
Because of the rise of personal devices used for work purposes, Texas employee handbook requirements include addressing trade secrets as well as confidential information. This ensures company property of all types is protected.
The handbook must also include policies surrounding remote work and hybrid employment. This is a growing concern for employers since there may be less oversight when remote workers are involved.
Another change is a focus on social media use and what rights the company has if an employee conducts themselves inappropriately on one of these platforms. Employees must know what to expect if they share hate speech or behave in other problematic ways.
What to Include in a Texas Employee Handbook
For a well-drafted employee handbook in Texas, there are some essential state and federal requirements to keep in mind.
Employment-at-Will Policy
Texas labor laws include employment-at-will policies. These mean that the employer or employee can adjust the terms related to the employment if there is no work contract or an official employment agreement in place. Termination of employment can occur with or without a reason, and there doesn’t have to be prior notice.
Texas Final Pay Policy
Another of the most important policies in an employee handbook is the Texas final pay policy. It dictates when an employer must give the employee their final paycheck, depending on how their employment ended. If the employee was fired, they must receive their paycheck no later than six days after the termination, but if they quit, it must occur by the next payday.
In the event of an employee dying, best practices require that the employer hand the last paycheck to the executor of the estate as rapidly as possible. It is against state law for Texas employers to withhold the final paycheck beyond the mentioned deadlines for any reason.
Texas Military Service Leave Policy
Employers must provide military leave protection policies for those who are deployed. These should clearly state what rights the employee has regarding when to let employers know they will be deployed.
Texas Voting Leave Policy
Employers in Texas must provide paid leave for workers who will be voting on election days. This law would only apply if the employee doesn’t have two consecutive hours outside of work in which to vote.
Workplace Privacy Policy
Texas employment laws also require employers to let employees know that any work devices they use could be monitored. Business communications and activities could be recorded, too.
Texas Day of Rest Policy
Employers must provide at least one day of rest for every seven that certain retail employees work. Eligible employees must work at least 30 hours a week to be included in this policy.
Break Policies
Texas does not require employers to provide breaks, but there are exceptions under religious protection laws and when it comes to women who are lactating. Lactation breaks must be granted.
Paid Parental Leave
Paid parental leave demonstrates an employer’s commitment to supporting employees during significant life events, fostering a family-friendly workplace environment. It promotes employee well-being, reduces financial stress, and enhances retention by showing value for work-life balance. Clearly outlining the policy ensures transparency, sets expectations, and helps employees understand their entitlements and eligibility. Further, it aligns with modern workforce demands and evolving legal standards.
Crime Victim Leave
Texas requires that employers provide paid time off for victims of crime and sometimes for those who have witnessed crimes. There are restrictions regarding how long the leave can be.
Witness Duty and Court Appearance Leave
An employee has the right to attend mandatory court appearances, and an employer may not prevent them from doing so or retaliate against the employee in any manner.
Sexual Harassment Policy
The Texas Workforce Commission and federal laws all require that employees have a clear idea of what they need to do in the event of harassment. Employees must have more than one person they can report the incident to as well. This is particularly vital in small businesses where there may not be a large human resources team.
Anti-Discrimination Policy
Also known as the Equal Employment Opportunity Policy, this federal law helps to prevent discrimination based on protected characteristics like race, gender, age, and many other factors.
The Americans With Disabilities Act must be mentioned in the handbook, too. This act protects people with disabilities from being discriminated against.
Background Checks
Employers must state whether they will be performing background checks on employees or not. If they will be doing so, they must add whether it will be a one-time procedure or if it can occur more than once.
Attendance Policy
All handbooks should clearly delineate what’s expected of employees when it comes to attendance. Some companies opt for a point system, but no matter what strategy you choose, it’s essential that it be consistent to ensure all employees are treated the same.
The attendance policy should also address the hours of work that are expected of each employee, depending on their position. A simple breakdown of these hours could prevent issues later on.
Dress Code
Employees must know in detail what they can and can’t wear at work. Employers will need to make concessions for religious beliefs and health issues but must otherwise maintain a consistent dress code with clear guidelines as to the consequences of violating it.
Workplace Safety
Employees need to know what conduct is expected of them to ensure workplace safety. Having a safety policy can accomplish this.
If injuries do occur, they also need to know how to report them and what the procedure is. These policies will be industry-specific.
Employment Relationships
The handbook should also address relationships between employees. They are typically not allowed when there are power disparities, but the policy has to state the consequences of dating in the workplace so that employees know what to expect.
Employment Contracts
The handbook needs to also cover all aspects of contracts, including if and how they can be voided. List the conduct that could earn an employee disciplinary actions taken against them, including termination. This can prevent wrongful termination claims.
Overtime
Employees should know whether overtime is a possibility and, if so, the type of pay they could receive. If all overtime needs to be approved, the handbook should state this, along with the reasons that are acceptable to ask for overtime.
Layoff and Recall
The handbook should let employees know what the policies are regarding layoffs. Is seniority important, or will other factors be taken into account? There should also be clear policies regarding recalling employees.
Outside Employment
If business owners are worried about conflict of interest or competition, the handbook should contain information as to whether taking other employment is allowed. Keep in mind that it’s not typical to forbid outside employment for low-level employees.
Smoking Policy
Smoking policies can help the company establish whether there will be smoking breaks allowed or if there will be designated smoking areas on the premises.
Retaliation
The handbook must clearly state that employers will not retaliate in response to complaints of harassment, discrimination, and other similar issues. The policies must align with federal laws that address this problem.
Trusting Labor and Employment Law Attorneys With Claims
Despite all of your best efforts and a well-drafted handbook, you may still experience issues with employees. If these aren’t addressed efficiently, it’s possible to face lawsuits that could put your business in danger. That is when it’s time to rely on an employment law attorney.
A labor and employment law attorney can help you deal with these challenges promptly and aggressively. At Ritter Spencer Cheng PLLC, Richard Y. Cheng and Jeff M. Schagren have decades of experience assisting business owners with the employment problems they face.
Contact our team to learn more about your rights.
