2025 Texas Employment Law Updates for Employees and Employers

A woman sitting at her work desk and looking distressed.

Understanding how workplace changes in 2025 affect Texas employee rights is essential in today’s changing world of employment law. As new federal and state regulations come into play, employees and employers must navigate a complex set of laws, from wage and hour issues to protections against discrimination.

At Galo Law Firm, we simplify these complexities to protect your interests. Whether you’re dealing with the Texas Minimum Wage Act, paid sick leave, or independent contractor classification, our skilled legal team is here to assist you. Don’t let confusion about employment laws jeopardize your rights. 

Contact us at 210-764-6135 for a consultation, and let us help you understand and assert your workplace rights. With Galo Law Firm by your side, you can confidently tackle the challenges of 2025 and beyond.

Updates to the Texas Minimum Wage Act

As of 2025, several states have decided to set their own higher state minimum wages to better match the cost of living for their residents. The Texas Minimum Wage Act has not changed since 2009, keeping the state’s minimum wage at $7.25 per hour. 

Texas remains among the states with the lowest minimum wage, impacting many workers’ earnings.

Employers need to understand the Texas Minimum Wage Act to ensure they follow both state and federal rules. As economic conditions change, keeping up with legislative updates can help businesses and employees deal with wage and hour issues more effectively.

Wage and Hour Issues

Texas employers must follow both federal and state labor laws, including the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA). 

Misclassifying workers can lead to hefty fines and increased unemployment taxes for employers in Texas. Staying informed about wage and hour issues and ensuring compliance with Texas labor laws is key to avoiding legal troubles and safeguarding employee rights.

Recent court decisions highlight the importance of understanding wage and hour regulations. Employers must ensure they provide fair compensation while adhering to legal standards.

Paid Sick Leave Policies

Paid sick leave policies in Texas can be tricky for both employers and employees. Unlike many other states, Texas does not have a law requiring private companies to offer paid sick leave. This means it’s up to each employer to decide if they will provide this benefit, leading to differences in what employees receive based on where they work.

Independent Contractor Classification

Deciding whether workers are independent contractors or employees is a crucial topic in Texas, affecting both sides significantly. The classification depends on how much control and independence the worker has in their job. 

The Texas Workforce Commission offers a 20-point guide to help employers make the right decision, focusing on aspects like setting their own methods and work schedule.

Independent contractors can take on multiple clients and aren’t financially reliant on just one employer. This classification affects benefits, taxes, and protections under the Fair Labor Standards Act. 

Getting the classification right is vital for employers to avoid financial penalties and higher unemployment tax rates.

Employment Discrimination Protections

The landscape of employment discrimination protections has changed a lot, especially after the Supreme Court’s 2020 decision in Bostock v. Clayton County. This important ruling made it clear that discrimination based on sexual orientation or gender identity is illegal in the workplace. 

The Equal Employment Opportunity Commission (EEOC) updated its guidelines to match this decision, providing a simpler way to handle workplace harassment and discrimination.

In Texas, some cities have introduced local laws to give extra protection against discrimination based on sexual orientation and gender identity. These local efforts show a growing understanding of the need for strong employment protections. Preventing harassment and discrimination ensures everyone is treated fairly and with respect.

The new EEOC guidelines require employers to allow transgender individuals to use restrooms that match their gender identity. If they don’t, it is considered harassment. 

Also, the EEOC emphasizes that employers cannot retaliate against people who report harassment, protecting those who speak up. These guidelines stress the importance of having an inclusive and respectful workplace.

Family and Medical Leave

Family and medical leave policies are designed to support employees during important life events. The Family and Medical Leave Act (FMLA) allows eligible employees to take unpaid leave. 

Texas has updated its family leave laws to work alongside federal guidelines, providing clearer benefits for employees. These updates ensure that employees have the right to specific amounts of paid family leave, matching federal minimums and helping them understand their rights.

In Texas, employees can take up to 12 weeks of family leave under certain conditions, similar to federal rules. However, some employees may not qualify for paid family leave based on their job type. Texas law also requires employers to inform employees about their family leave rights and duties, improving transparency.

The Pregnant Workers Fairness Act requires employers to provide reasonable accommodations for pregnant employees, unless it would cause major difficulties for the employer. This act ensures that pregnant employees receive the necessary support to work safely and comfortably.

Reasonable Accommodations for Employees

Reasonable accommodations for employees have become a key part of employment law, especially concerning reproductive health decisions. New laws now require employers to provide support for employees’ reproductive health choices, ensuring that workplace practices are fair and non-discriminatory. 

Employers are also not allowed to punish employees who ask for accommodations related to reproductive health or personal beliefs.

Employers also need to consider requests for accommodations related to employees’ religious or political beliefs, which helps make the workplace more inclusive.

These new accommodations highlight the importance of creating a supportive and inclusive workplace. Employers should understand and apply these protections to maintain a respectful and compliant work environment.

How Galo Law Firm Can Help You

At Galo Law Firm, we focus on providing clear and practical legal support for your employment needs. We understand the challenges that come with the new 2025 Texas labor laws, including changes to the Texas Minimum Wage Act and federal E-Verify requirements. Our Sam Antonio labor lawyers are here to help you understand these changes and ensure your rights are protected.

We offer guidance on a wide range of issues, such as wage and hour disputes, discrimination, and workplace retaliation. Our approach is simple: we listen to your concerns, explain your options, and work alongside you to find solutions that fit your situation.

With a commitment to supporting our clients, Galo Law Firm is ready to assist you in navigating the complexities of employment law. 

Reach out to us at 210-764-6135 to set up a consultation and let us help you with your legal needs.