Your Guide to Texas Employment Law

Texas employment law can be difficult to define, but it is essential that all employers follow it closely. As a Texas small business owner, you are subject to a range of laws that curb and restrict who you can hire and how they are paid. Below, we have included a brief overview of Texas employment law highlights and important points.

Employment Discrimination

In Texas, equal employment opportunity laws prohibit employers from denying equal opportunities in all aspects of employment. This includes hiring, promotion, discharge, pay, fringe benefits, membership, training, and demographic make-up, including but not limited to race, color, national origin, religion, sex, age, or disability.

Texas Payday Law

The Texas Payday Law requires all Texas employers to pay their employees who are exempt from the overtime pay provisions at least once per month. All other employees must be paid at least semi-monthly, and each pay period must have a nearly equal number of days.

Texas Child Labor Laws

In Texas, the minimum age for employment is 14, but some state and federal laws provide for certain exceptions. Because this law is a bit more specific, we recommend calling the Texas Workforce Commission’s Labor Law Section at 800-832-9243 with any questions.

Minimum Wage and Overtime

Texas’ minimum wage is $7.25 per hour, the same as the federal minimum wage.

What You Need to Know about Domestic Employment in Texas

In Texas, domestic employment is defined as work performed in a private home setting or, similarly, at a college fraternity or sorority chapter. Occupations that often fall under this category include nannies, caretakers, companions, housekeepers, gardeners, and chauffeurs. These employees work for individuals or sole proprietors in a home, and that employer becomes liable to pay unemployment taxes if they pay gross wages of $1,000 or more in a calendar quarter. Yes, that’s right. You should be withholding taxes from your nanny with a nanny payroll software. To register and to view your reporting options, check out the Texas Workforce Commission’s website.

How Payroll Software can Help

As in most states, Texas employment law is sometimes difficult to follow. Employers, especially those who hire domestic help, often forget to file or which numbers they need to determine liability. Even if you run a full-fledged small business, you’ll likely need help calculating accurate withholding and storing that information for later use. If this explains your situation, AMS Payroll may be the tool for you.

AMS Payroll is a comprehensive, semi-automated payroll system perfect for all types of employers who need to adhere to Texas employment law. The software automatically calculates local, state, and federal tax and withholds those funds from employee paychecks, meaning you have to do few, if any, calculations. The software will then store this information in a back-end data hosting feature for later use in quarterly or annual filing. If you’ve been meaning to streamline your payroll and tax liability processes, this is a great place to start.

Getting Started

If you’re interested in trying AMS Payroll, download our free demo software. This is a great way to see how a tool can help understand your tax liability and keep track of important information. When you’re ready to purchase, you can do so at any time and from anywhere. If you have any questions, please call our Sales and Information team at 800-536-1099.


Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.