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Texas Employment Contract Template

Use our customizable template to clearly define employment terms in Texas. Set pay, duties, benefits, and policies to protect both employer and employee while complying with state and federal law.

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1,109 Ratings
  • Duration 2 min
  • Download as PDF and Word
  • E-sign included

Written by Josh Sainsbury | Attorney-Reviewed by Harvey Barbee, J.D.

How It works?

1

Answer a Few Questions

Enter job details like position, pay, benefits, and start date to build your Texas contract.

2

Customize Your Contract

Our builder creates a professional agreement tailored to your input.

3

Download and Finalize

Save your contract instantly as PDF or Word, then review and sign with your employee.

Table of Contents

  1. What Is a Texas Employment Contract?
  2. Key Texas Hiring Rules That Affect Your Contract
  3. How to Write a Texas Employment Contract

What Is a Texas Employment Contract?

A Texas employment contract is a written agreement between an employer and employee that sets out job duties, pay, and workplace policies. Texas follows the at-will employment rule, meaning either party can end the relationship at any time unless a contract, handbook, or specific law says otherwise.

Key Texas Hiring Rules That Affect Your Contract

  • At-will employment: Default rule unless a contract or agreement modifies it. Exceptions exist for discrimination, retaliation, or violations of public policy.
  • Minimum wage: Texas adopts the federal minimum wage of $7.25/hour.
  • Overtime:FLSA applies—non-exempt employees must receive 1.5× pay for hours over 40 per week.
  • Meal/rest breaks: No state law requires breaks; federal rules apply (short breaks under 20 minutes must be paid).
  • Paid leave: Texas does not mandate private employers to provide vacation, sick leave, or holiday pay. Cities may set rules, but statewide, there is no requirement.
  • Pay frequency: Wages must be paid at least twice per month unless exempt (Texas Statutes Labor Code § 61.011).
  • Final pay: Fired employees must be paid within six calendar days; employees who resign must be paid by the next payday (TX Lab Code § 61.014).
  • Child labor: Minors under 14 generally cannot work. Ages 14–15 are restricted in hours, and hazardous work is prohibited under 18 (TX Lab Code Ch. 51).
  • Non-competes: Enforceable if reasonable in scope, duration, and geography, and supported by valid consideration (Texas Business & Commerce Code § 15.50). For physicians and others in the healthcare industry, a non-compete agreement must be limited to no more than one year and within a five-mile radius of their practice location.
  • E-signatures: Valid under the Uniform Electronic Transactions Act (TX Bus & Com Code § 322.007).
  • Recordkeeping: Employers must follow FLSA rules—keep payroll and employment records for at least 3 years.

How to Write a Texas Employment Contract

When drafting a Texas employment contract, include these key elements:

  1. Add party details: List employer and employee names, job title, and start date.
  2. Define job duties: Outline daily responsibilities, reporting structure, and work location.
  3. Set pay and schedule: State hourly wage or salary, pay frequency, and overtime rules.
  4. Break and leave policies: Clarify your company’s approach to breaks, PTO, and sick leave.
  5. List benefits: Include any health, retirement, or additional perks offered.
  6. Confidentiality and IP: Add clauses to protect company trade secrets and intellectual property.
  7. Restrictive covenants: Use reasonable non-compete or non-solicitation clauses if needed.
  8. Termination terms: Confirm Texas’s at-will rule and add any notice or severance provisions.
  9. Finalize contract: Specify Texas law as governing and allow for electronic signatures.