- Minimum Wage: Texas adheres to the federal minimum wage of $7.25 per hour, with no state-specific increases.
- Overtime: Employers must pay overtime at 1.5 times the regular rate for hours worked beyond 40 in a week.
- Sick Leave: There is no state requirement for sick leave. Employers may establish policies at their discretion.
- Meal and Rest Breaks: Texas does not mandate meal or rest breaks. However, federal regulations apply if breaks are provided.
Payroll Schedule: Employers must pay non-exempt employees at least semi-monthly. Exempt employees may be paid monthly.
Tax Compliance:
- State Unemployment Tax (SUTA): Ranges from 0.31% to 6.31%, based on the employer’s experience rating, on the first $9,000 of wages.
- Federal Payroll Taxes: Employers must comply with Social Security, Medicare, and federal unemployment tax (FUTA) regulations.
PEOs provide access to competitive benefits like health insurance, 401(k) plans, and retirement savings programs. Through pooled resources, PEOs can offer enterprise-level benefits without employment minimums, reducing costs for Texas employers.
Check out our comprehensive state hiring guide.



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