Texas Employment Law: Key Considerations for Employers in Hiring

Texas employment law encompasses a variety of regulations that impact the hiring process for employers. Understanding these laws is crucial to create a compliant and fair workplace. Here are some key considerations for employers when navigating employment law in Texas.

1. Employment At-Will Doctrine
Texas operates under the employment at-will doctrine, which means either the employer or the employee can terminate the employment relationship at any time, for any reason, as long as it is not illegal. Employers should, however, be cautious and ensure they are not violating any anti-discrimination laws or retaliatory actions when making hiring or termination decisions.

2. Anti-Discrimination Laws
Employers must adhere to both federal and state anti-discrimination laws. The Equal Employment Opportunity Commission (EEOC) enforces laws prohibiting employment discrimination based on race, color, religion, sex, national origin, age, disability, and genetic information. In Texas, the Texas Workforce Commission (TWC) also enforces state-specific discrimination laws. Employers should be diligent in ensuring their hiring processes are free from bias and discrimination.

3. Pre-Employment Inquiries
Employers are allowed to gather information regarding a potential employee’s qualifications and experience. However, care must be taken to avoid questions that can be deemed discriminatory. For example, inquiries about an applicant’s age, marital status, or religious beliefs can lead to legal repercussions. Focusing on job-related criteria ensures compliance with employment laws.

4. Background Checks
When conducting background checks, employers in Texas must comply with the Fair Credit Reporting Act (FCRA). This includes obtaining the applicant's consent before conducting the background check, providing a disclosure notice, and informing the applicant if they are negatively affected by information obtained during the process. Employers should also be aware of how to handle the results, especially regarding criminal records, to comply with anti-discrimination laws.

5. FMLA and Employee Rights
The Family and Medical Leave Act (FMLA) requires certain employers to provide eligible employees with unpaid leave for specific family and medical reasons. Although not directly related to the hiring process, employers should be aware of their FMLA obligations and ensure that their hiring practices do not violate an employee’s rights under this law.

6. Record Keeping
Employers should maintain proper records of all hiring practices, including applications, resumes, and interview notes. This documentation can be crucial in the event of a dispute regarding hiring decisions. Texas law does not specify the duration for retaining such records, but it is advisable to keep them for at least a year after making a hiring decision.

7. Compliance with Wage and Hour Laws
When hiring, employers must also consider wage and hour laws, including minimum wage and overtime requirements. The Texas Wage Act establishes regulations that align with the Fair Labor Standards Act (FLSA). Employers should accurately classify employees as exempt or non-exempt and ensure compliance with overtime rules to avoid wage disputes.

8. Non-Compete Agreements
Employers may also want to consider implementing non-compete agreements for certain positions. In Texas, non-compete clauses must be reasonable in scope and geography, and they must protect a legitimate business interest. When crafting these agreements, employers should ensure they are enforceable under Texas law.

Understanding and adhering to Texas employment law is essential for employers to foster a healthy, equitable work environment. By keeping these key considerations in mind during the hiring process, employers can mitigate risk and promote fair employment practices.