Business Lawyers Blog
In 2025, Texas employers will face several key updates to employment laws that could significantly affect workplace policies. While Texas maintains its reputation as a business-friendly state with fewer regulations, new legislation at the state and federal levels aims to address employee rights, workplace safety, and wage issues. Below are the key updates for 2025 that Texas employers need to consider.
1. Paid Family Leave Developments
Texas does not currently have state-mandated paid leave laws. However, employers should stay informed about federal changes that could affect their businesses. The current administration and Congress have been debating the possibility of a federal paid family and medical leave program, which could require Texas employers to provide paid leave for qualifying family and medical reasons.
What Employers Should Do:
- Stay informed about any potential federal changes that may affect paid leave requirements.
- Review current leave policies to ensure compliance with existing federal laws such as the Family and Medical Leave Act (FMLA).
2. Expansion of Protections for Gig Workers and Independent Contractors
2025 brings new guidance from the Texas Workforce Commission (TWC) aimed at clarifying the classification of independent contractors versus employees. Misclassification can lead to penalties, back pay, and fines under both state and federal law.
Key Takeaways:
- Employers should review their worker classifications to ensure compliance with TWC guidelines.
- Consider legal counsel to evaluate any risks related to contractor misclassification.
3. Workplace Safety: Enhanced OSHA Enforcement
In 2025, the Occupational Safety and Health Administration (OSHA) plans to step up its enforcement in Texas, particularly in high-risk industries such as construction, oil and gas, and manufacturing. Texas employers should expect more frequent OSHA inspections and potentially stricter penalties for safety violations.
Steps to Take:
- Review and update workplace safety programs to ensure compliance with OSHA standards.
- Train employees on safety protocols and document all safety measures.
- 4. No State-Wide Minimum Wage Increase
Texas employers must continue to comply with the federal minimum wage of $7.25 per hour, as the state has not passed legislation to raise the minimum wage. However, cities such as Austin and Dallas have introduced discussions about establishing local minimum wages for certain industries.
Employer Takeaway:
- Ensure that all employees are paid at least the federal minimum wage.
- Monitor local city ordinances that may introduce higher minimum wage requirements for businesses in certain areas or industries.
5. Updates to Employee Benefits and Health Care Coverage
With ongoing debates at the federal level, employers should stay vigilant about changes that could impact health care plans and benefits in 2025. Proposed amendments to the Affordable Care Act (ACA) could affect employer-sponsored health plans, particularly regarding preventive care and mental health benefits.
Next Steps for Employers:
- Review employee health care benefits to ensure compliance with any ACA changes.
- Consider offering enhanced mental health benefits to support employee well-being.
Preparing for 2025
As Texas enters the new year, employers should prioritize reviewing and updating their workplace policies to reflect these changes. Whether it’s federal changes to paid family leave, OSHA safety requirements, or evolving guidelines on independent contractors, staying proactive can help your business avoid potential legal issues.
For more information on how these changes could impact your business, contact Structure Law Group, LLP at (512) 881-7500 or reach out to us online for expert legal guidance on social media and content moderation.