Employer of Record in Texas.
Non-Subscriber Ready.

Correct - Texas is the only state in the US that does not mandate workers' compensation insurance for private employers. Employers who opt out are called "Non-Subscribers." While this reduces premium costs, Non-Subscriber employers cannot use traditional legal defenses (contributory negligence, assumption of risk) in workplace injury lawsuits, which can result in much larger damage awards. WorkGenius subscribes to workers' comp for every Texas employee, completely eliminating this exposure for your business.

Texas follows the federal minimum wage of $7.25 per hour. Unlike California, New York, or Illinois, Texas has not enacted a state minimum wage above the federal floor. There is no state-level minimum wage increase scheduled. Local ordinances that attempt to set a higher minimum wage are preempted by Texas law.

Texas has no state income tax, which means there is no state income tax withholding from employee paychecks. Federal income tax, Social Security, and Medicare still apply, but employees keep significantly more of their earnings than in states like California or New York. WorkGenius handles all federal and Texas-specific payroll obligations, including SUTA (unemployment insurance) contributions to the Texas Workforce Commission.

Under the Texas Payday Law, final pay is due within 6 calendar days of an involuntary termination (firing or layoff). For employees who resign, final pay is due on the next regularly scheduled payday. Unlike California, there is no same-day requirement, but the 6-day deadline for terminations is strictly enforced - late payments can result in administrative penalties and wage claims filed with the Texas Workforce Commission.

Yes, but the rules changed for health care on September 1, 2025, and Texas courts apply a specific test elsewhere. SB 1318 (Acts 2025, 89th Leg., R.S., Ch. 816) amended 15.50 for physicians: the buyout is capped at the physician's total annual salary and wages at termination, the covenant must expire no later than one year after the contract or employment ends, geography is capped at a five-mile radius from the location where the physician primarily practiced, and the terms must be clearly and conspicuously stated in writing. New 15.50(d) voids a physician non-compete entirely where the physician is involuntarily discharged without good cause. A new section 15.501 applies the same four limits, minus the involuntary-discharge rule, to dentists, professional and vocational nurses, and physician assistants. Amended 15.52 makes 15.50 and 15.501 the exclusive criteria, preempting common law, and the changes apply to covenants entered into or renewed on or after September 1, 2025. Outside health care, under Texas Business & Commerce Code 15.50 a non-compete must be ancillary to an otherwise enforceable agreement (such as a contract to provide confidential information or specialized training), and it must be reasonable in time, geographic area, and scope of activity restricted. Under Business & Commerce Code 15.51(c) the court shall reform an unreasonable covenant to what is reasonable rather than void it - but reformation comes at a cost to the employer: it cannot recover damages for the employee's conduct before reformation, and may be liable for the employee's costs and fees where the covenant was drafted knowing it was unreasonable. WorkGenius drafts non-compete provisions that meet the Texas standard while protecting your legitimate business interests.

No. Texas has no state-mandated paid sick leave, paid family leave, or paid disability insurance. Austin, San Antonio and Dallas each passed local paid sick leave ordinances. All were blocked in litigation, and SB 2127, effective September 2023, broadly preempts local employment mandates, so none is in effect. This makes Texas one of the simplest states from a leave-compliance standpoint. WorkGenius still administers any voluntary PTO, federal FMLA leave, and ACA benefits as part of the employment package.