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Find out how Remote can guide you through the complexities of managing cross-border hiring, payroll, taxes, and compliance.

Employing in Texas

In Texas, workers’ rights are protected by numerous employment and labor laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race.

Here are the key things you need to know about hiring in Texas.

Hours of work in Texas

In Texas, the regulations and edicts around working hours and overtime are primarily covered by the Texas Labor Code.

What is considered full-time employment in Texas?

Full-time employment is generally considered to be between 30 and 40 hours per week.

Do salary employees get overtime in Texas?

Under the federal Fair Labor Standards Act, non-exempt employees are entitled to overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.

Employees are generally (but not always) exempt from overtime if they:

  • Earn more than the specified state or federal exemption threshold
  • Perform a role with duties that are
  • Work in a certified or licensed profession, such as law, accounting, architecture, or engineering

In Texas, the salary threshold for exemption is currently $684 per week, which is the federal minimum.

Note that the federal salary threshold for exemption is currently being reviewed in the US.

Competitive benefits package in Texas

Remote can help you craft a competitive benefits package to attract and retain the best global talent. Our benefits experts understand the trends, requirements, and expectations of the Texan labor market, allowing your employees to feel appreciated and thrive.

Our benefits packages in Texas usually include some or all of the following:

pension_or_401(k)
Pension or 401(K)
vision_insurance
Vision Insurance
medical_insurance
Medical Insurance
health_saving_plan_(hsa)
Health Saving Plan (HSA)
long_term_disability_insurance_(ltd)
Long term disability insurance (LTD)
dental_insurance
Dental Insurance
life_insurance
Life Insurance
flexible_spending_account_(fsa)
Flexible Spending Account (FSA)

Are employers required to provide health insurance in Texas?

Under the federal Affordable Care Act, organizations with a headcount of 50 or more must offer statutory health insurance to their full-time employees.

Many employers also offer some level of supplemental health insurance. While this can lead to a relative rise in employment costs, it’s an essential benefit that ensures your people have access to routine care and are covered in the event of an emergency. 

Because Remote is the employer of record (EOR), it’s important for us to offer the same core benefits to all employees to ensure fair and non-discriminatory hiring practices. This protects both your business and ours.

Note that we do not add a markup on any benefits premiums or administration costs.

Do part-time employees get benefits in Texas?

Employees are only legally entitled to health insurance and other benefits if they regularly work more than 30 hours per week. 

Are employers required to offer 401k in Texas?

No. Organizations are not legally required to offer a 401k retirement plan (or any other type of savings plan) to their employees. However, they may choose to offer this benefit as part of their overall compensation package.

Facts & Stats

With a larger landmass than the UK and Germany combined, Texas famously goes big — in every sense.

Famed for its vast oil reserves, iconic cowboy culture, and important historical legacies, the Lone Star State is also one of the country’s strongest economic centers. With a thriving tech scene in the state capital, Austin, and a rich, multicultural heritage that embraces diversity and creativity, Texas is an excellent destination for businesses and talent alike.

Capital City
Austin
Currency
United States Dollar
($, USD)
Population size
29,000,000
VAT - standard rate
6.25% (Higher in some cities and regions )

Grow your team in Texas with Remote

If you want to hire in Texas, you’ll need to own a legal entity there — or partner with a global employment solutions provider, like Remote.

We can employ top talent in Texas on your behalf and manage complex HR tasks such as onboarding, payroll, benefits, and taxes. You can also manage and pay your contractors in Texas through Remote.

Risks of misclassification

Texas, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Texas may lead to fines and penalties for the offending company.

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Fair Pricing in Texas

Payroll

29

per employee/month
Book a demo
  • Powerful, transparent international payroll
  • Simple self-service platform
  • Personalized support from dedicated specialists
  • Adhere to local payroll regulations in every country
  • Integrated payroll, expense management, and HRIS solution
Contractor Management

29

per contractor/month
Book a demo
  • Only pay for contractors you actively work with
  • Work with international contractors
  • Create, edit, and sign tailored, localized contracts
  • Approve contractor invoices with one click or auto-pay
  • Transparent payments with complete visibility
Employer of Record

699 599

per contractor/month
Book a demo
  • Hire without opening a local entity
  • Guided onboarding
  • Local payroll paid on time, every time
  • Built-in security and compliance
  • Flexible, localised benefits
  • Offer equity incentives with tax assistance
  • Dedicated experts for local support