Texas Employment Law Updates 2025
Every time a new administration comes into power, it brings changes to labor and employment laws. Some of these changes are sweeping ones that impact federal law, while others open the door for states to update existing regulations by taking concerns through the court system.
As an employer, it’s essential to stay compliant with both state and federal laws, but that’s not always simple to do because of the various changes that can arise seemingly overnight.
So what should you be paying attention to this year now that the Trump administration has begun to make adjustments to labor and employment regulations? For Texas employment law updates, 2025 brings important changes that benefit Texas employers and employees alike. Take a closer look at the details of these new laws and what they mean for your business.
Reporting State Workplace Violence
To address workplace safety concerns, Texas law requires all employers in the state of Texas to post notices mentioning the Texas Department Public Safety hotline for reporting workplace violence and suspicious activity. This hotline is available 24 hours a day, seven days a week.
To be compliant with the posting requirements, which began in 2024 but have been officially continued, employers must place the posters in conspicuous locations so that they are available to all employees. The poster must be in English, and in some instances, in Spanish, depending on your company’s workforce demographics.
DEI Offices for Colleges and Universities
In one of the most significant Texas employment law updates, 2025 will see the continuation and expansion of the elimination of diversity, equity, and inclusion initiatives in colleges and universities. In Texas, the changes began in 2024, when the U.S. Supreme Court ruled that Affirmative Action considerations for university admissions are unconstitutional.
As a result of the ruling, Texas no longer allows institutions of higher learning, such as the University of Texas, to hire employees or independent contractors to maintain DEI offices. These institutions also cannot require DEI statements from prospective employees, and they cannot give preference to candidates based on gender identity, national origin, race, or sexual orientation.
The only exceptions to these laws are for low-income students, first-generation college students, and underserved student populations. Other requirements that institutions need to maintain accreditation are also permitted.
“Color-Blind” Hiring Policies
Governor Abbott’s January 2025 executive order requires state agencies to stop making hiring decisions based on diversity and to instead uphold color-blind hiring practices. These new state regulations do not supersede anti-discrimination protections offered by the federal government, however.
Non-Compete Bans
Employment practices that involve restrictive covenants like non-compete agreements are also facing changes. In 2024, a federal District Court in Texas ruled against the implementation of a sweeping ban on non-compete agreements.
Subsequently, the Federal Trade Commission appealed the ruling, but the action has been stalled now that President Trump is in the White House.
The Eleventh and Fifth Circuit courts are now considering the appeal, but there has been no ruling yet. If the ban is implemented, it could mean that employers are forbidden from creating or enforcing non-compete agreements, while also invalidating existing ones. This would be for both public and private employers throughout the United States.
Overtime Pay
In late 2024, a federal district court in Texas struck down the Department of Labor’s rule that increased the minimum salary thresholds for administrative, professional, and executive employees. The Department of Labor’s ruling raised the threshold from $684 a week to $844 a week.
A second increase, effective January of this year, was meant to increase the threshold to $1,128 a week, but a federal district judge’s ruling scaled the threshold back to what it was in early 2024.
The Trump administration is not likely to pursue the 2024 rule, but it might support a less significant increase. Alongside and connected to this issue is the classification of independent contractors. It’s long been contested and could be addressed when overtime pay issues are assessed.
Clarification of Burden of Proof for Employers Proving Exempt Status
In a unanimous ruling, the U.S. Supreme Court stated in January of 2025 that an employer seeking to prove that an employee is exempt from the minimum wage and overtime obligations enforced by the Fair Labor Standards Act must meet the preponderance of evidence standard.
The Fourth Circuit court had previously ruled on behalf of employees who sued their employers because the employers were required to use the clear-and-convincing-evidence standard. The Supreme Court struck this down because the preponderance of evidence standard is the one that applies to all civil litigation cases.
This new standard is likely to make it easier for employers to defend cases of minimum wage and overtime pay when charged with wrongfully classifying an employee.
Workers’ Compensation Act Amendments
Texas has made changes to the way weekly wages are calculated when it comes to workers’ compensation benefits. The amendments clarify previous vague points and also help insurance companies request adjustments to a seasonal worker’s weekly wages. With the amendment, insurers can also request information on the wages of seasonal employees.
Changes to the Family and Medical Leave Act
This year, there have already been changes to the Family and Medical Leave Act (FMLA). One of these states that employers cannot force employees to use employer-provided time off, including vacation time, if they are already receiving FMLA benefits or benefits under local family leave programs.
There has also been an expansion of paid family leave programs, allowing employees to receive paid time off for certain medical and family reasons. These expansions pertain to parental leave as well. Unpaid leave requirements remain the same as provided by the FMLA.
It’s important to know which family members and health conditions are eligible for leave at the state level, since this can vary. Ensuring that your workplace policies clearly state this information can prevent complications.
Another change involves documentation requirements. To apply for these employee benefits, workers now have less paperwork to fill out.
Minors’ Working Hours
Texas labor laws have restrictions on the working hours of minors between the ages of 14 and 15. These restrictions have been adopted from the Fair Labor Standards Act, and they do not allow minors to work during school hours.
Additionally, when school is not in session, minors cannot work more than 40 hours a week. When school is in session, they cannot work for more than 18 hours a week.
Payment of Wages
Payday law requires that Texas employers pay their employees on time. If they are exempt from the federal Fair Labor Standards Act, they need to be paid at least once a month. Everyone else must be paid twice a month. As of early 2025, there have been no changes to the minimum wage in Texas.
Harassment in the Workplace Enforcement Guidance
The Equal Employment Opportunity Commission has provided further guidance on protected characteristics regarding harassment in the workplace. Aside from race, age, and other factors, protected categories include pregnancy and related medical conditions, as well as genetic information.
These guidelines also provide new examples of what harassment in the modern age can look like and what steps employers need to take to prevent legal issues.
What to Do if Employment Disputes Arise
As an employer, it is essential to know how you can protect yourself and your business from lawsuits. This means staying up to date on all of the changes to Texas and federal employment laws is key — as well as having experienced legal counsel on your side to help address issues the moment they arise.
At Ritter Spencer Cheng PLLC, our seasoned team of employment law attorneys can provide the legal advice you need to halt problems before they escalate into lawsuits. We can also help prevent disputes from arising by ensuring that your business is fully compliant with all appropriate laws. In addition, if an employee or laborer brings a claim against an employer, and the employer does not have coverage to defend it, our attorneys can assist in resolving the matter.
Attorneys Richard Y. Cheng, David D. Ritter and Jeff M. Schagren are our employment attorneys, bringing decades of combined legal experience to every case. Their dedication makes them the premier choice for employers throughout the state looking for trusted guidance in navigating labor law concerns.
Protect your business with assistance from experienced labor law and employment attorneys. Contact us at Ritter Spencer Cheng PLLC to schedule a consultation today.
