Employment Laws by Business Size in Texas: A Comprehensive Guide
November 19, 2024
Article Summary
- Learn how employment laws vary based on business size in Texas.
- Understand key federal and state laws and their employee thresholds.
- Stay compliant with The Unit Consulting’s HR expertise.
Why Employment Laws by Business Size Matter
Employment laws are not one-size-fits-all. The requirements that apply to your business often depend on the number of employees you have. From wage and hour regulations to discrimination protections, knowing which laws apply to your Texas business is crucial for compliance and minimizing risk. Misunderstanding these requirements can result in costly fines or legal challenges.
Whether you’re a small business with just a few employees or a growing company with dozens of workers, understanding your responsibilities is essential to running a compliant and successful organization.
Federal Employment Laws and Texas Employment Laws by Business Size
Federal employment laws and Texas employment laws apply based on specific employee thresholds. Here are the most critical laws:
| Employment Law | Applies to Businesses with Minimum Employees | Description | Mandated By |
| Fair Labor Standards Act (FLSA) | 1+ | Regulates minimum wage, overtime pay, and child labor. | Federal |
| Texas Payday Law | 1+ | Ensures timely payment of wages to Texas employees. | State |
| Texas Workers’ Compensation Law | 1+ | Outlines compensation for employees injured on the job. | State |
| Texas Minimum Wage Act | 1+ | Establishes minimum wage requirements in Texas. | State |
| Uniformed Services Employment and Reemployment Rights Act (USERRA) | 1+ | Protects service members’ employment and reemployment rights. | Federal |
| Occupational Safety and Health Act (OSHA) | 1+ | Sets and enforces workplace safety standards to protect employees. | Federal |
| Equal Pay Act (EPA) | 1+ | Prohibits pay discrimination based on gender for substantially equal work. | Federal |
| National Labor Relations Act (NLRA) | 1+ | Protects employees’ rights to unionize, bargain collectively, and engage in concerted activities. | Federal |
| Child Labor Laws (Under FLSA) | 1+ | Restricts hours and types of work minors can perform. | Federal |
| Texas Child Labor Laws | 1+ | Restricts employment and working conditions for minors under 18. | State |
| Texas Right-to-Work Laws | 1+ | Prevents requiring union membership as a condition of employment. | State |
| Texas Occupational Safety Laws | 1+ | Enforces safety regulations for smaller businesses exempt from federal OSHA. | State |
| Title VII of the Civil Rights Act | 15+ | Prohibits employment discrimination based on race, color, religion, sex, or national origin. | Federal |
| Americans with Disabilities Act (ADA) | 15+ | Prohibits discrimination against individuals with disabilities and requires reasonable accommodations. | Federal |
| Pregnant Workers Fairness Act (PWFA) | 15+ | Requires employers to provide reasonable accommodations for pregnant workers. | Federal |
| Genetic Information Nondiscrimination Act (GINA) | 15+ | Prohibits discrimination based on genetic information, including family medical history. | Federal |
| Age Discrimination in Employment Act (ADEA) | 20+ | Prohibits age discrimination for individuals 40 years and older. | Federal |
| Consolidated Omnibus Budget Reconciliation Act (COBRA) | 20+ | Provides continuation of group health benefits for employees after termination or reduction in hours. | Federal |
| Immigration Reform and Control Act (IRCA) | 4+ | Prohibits discrimination based on citizenship or immigration status and requires I-9 verification for all employees. | Federal |
| Family and Medical Leave Act (FMLA) | 50+ | Provides eligible employees with unpaid leave for family and medical reasons. | Federal |
| Affordable Care Act (ACA) | 50+ | Mandates employers to provide health insurance for full-time employees. | Federal |
| Affordable Care Act (ACA) Employer Mandate | 50+ (Full-Time Employees) | Requires employers with 50+ full-time employees to provide health insurance or face penalties. | Federal |
Each of these laws has specific requirements, making it critical for businesses to understand when these thresholds are met and what actions they need to take.
Industry-Specific Employment Laws in Texas
Beyond size, your industry also determines the employment laws that apply to your business.
| Employment Law | Applies to Businesses | Description | Mandated By |
| Service Contract Act (SCA) | Employers with federal contracts exceeding $2,500 | Establishes wage and safety standards for employees performing federal contracts. | Federal |
| Davis-Bacon Act | Construction companies with federal contracts | Requires payment of prevailing wages to laborers and mechanics. | Federal |
| Healthcare-Specific Regulations (HIPAA) | Healthcare providers and employers offering group health plans | Ensures privacy and security of health information. | Federal |
| Federal Contract Compliance Programs (OFCCP) | Federal contractors and subcontractors | Enforces equal opportunity and affirmative action requirements. | Federal |
Why Understanding Employment Laws by Business Size is Critical
Non-compliance can lead to hefty fines, legal challenges, and damage to your company’s reputation. Employers must regularly evaluate their business size and workforce to ensure compliance with applicable federal and state laws. Staying proactive about employee classification, benefits, and workplace policies is essential for managing risk and fostering a healthy work environment.
How The HR Consulting Firm at The Unit Consulting Can Help
Navigating the complexities of employment laws by business size in Texas can be overwhelming, but The Unit Consulting is here to help. We specialize in tailored HR solutions, ensuring your business remains compliant with all relevant regulations. Whether you’re managing payroll, implementing employee policies, or addressing compliance concerns, we provide expert guidance every step of the way.
Contact us today to streamline your HR processes and protect your business. Let The Unit Consulting help you turn compliance challenges into opportunities for growth and success.
