You’re running a lean Texas operation, and someone just asked if you have an employee handbook. Your first thought: “Do I really need one?
The question isn’t whether Texas requires a handbook—it’s whether you can afford to operate without the legal protections a proper handbook provides. Knowing how to choose a Texas employee handbook builder means finding a tool that covers federal requirements, protects your at-will employment status, and scales as you expand.
This guide shows you essential policies Texas employers need in 2026 and how to evaluate handbook builders that protect your business without unnecessary complexity.
Why Texas Employers Still Need a State-Compliant Handbook
Texas operates under strong at-will employment principles with minimal state-level mandates. This doesn’t mean handbooks are optional—it means your handbook serves a different but equally critical purpose.
At-will employment in Texas
Texas follows at-will employment, meaning either party can terminate the relationship at any time for any legal reason. This provides significant flexibility, but only if your handbook reinforces at-will status rather than accidentally creating implied employment contracts.
Courts have held that handbook language promising “progressive discipline” or “termination only for cause” can override at-will employment. Without clear at-will disclaimers and reservation of rights language, your handbook can become an enforceable contract that limits your ability to terminate employees.
Federal vs state policy gaps
While Texas has few state-specific employment laws, federal requirements still apply. The Fair Labor Standards Act (FLSA), Title VII, Americans with Disabilities Act (ADA), Family and Medical Leave Act (FMLA), and other federal laws create extensive compliance obligations that Texas employers must document.
Most employment lawsuits in Texas stem from federal claims—discrimination, retaliation, wage and hour violations, and FMLA interference. A handbook that clearly communicates federal rights and company policies helps defend against these claims.
Why handbooks still matter in TX
Even without extensive state mandates, Texas employers need handbooks to establish at-will employment disclaimers, document federal compliance with FLSA, Title VII, ADA, and FMLA, create consistent policies that prevent discrimination claims, and reduce liability from employee misunderstandings.
Key Texas Employee Handbook Policies for 2026
While Texas doesn’t mandate specific handbook policies at the state level, federal laws and practical risk management require certain sections.
Wage and hour rules
Texas follows federal wage and hour law under the FLSA. Your handbook should document minimum wage compliance (currently $7.25 federal minimum), how you calculate hours worked, policies on off-the-clock work, and meal and rest break practices. While Texas doesn’t require meal breaks, many employers provide them and should document the policy.
Overtime and exemptions
Clearly explain overtime pay at 1.5 times regular rate for non-exempt employees working over 40 hours per week. Document which positions are exempt from overtime (executive, administrative, professional, outside sales) and explain how you determine exempt status.
Payday and payroll policies
Texas law requires designated paydays at least twice per month for most employees. Your handbook should state your pay schedule, explain how you handle final paychecks (Texas requires payment by the next regular payday), and document any payroll deduction policies.
Anti-harassment and EEO
Federal law prohibits harassment and discrimination based on protected characteristics. Your handbook must include equal employment opportunity policies, comprehensive anti-harassment policies covering sexual harassment and other protected categories, clear complaint procedures with multiple reporting channels, and anti-retaliation language.
Safety and OSHA rules
Document your commitment to workplace safety, injury reporting procedures, and compliance with OSHA standards. Include drug and alcohol policies if applicable to your industry. Texas is a workers’ compensation opt-out state, so clearly explain whether you participate in workers’ compensation coverage.
Mistakes Texas Employers Make with Handbooks
Assuming Texas has no requirements
The biggest mistake Texas employers make is assuming that because Texas has minimal state employment laws, they don’t need comprehensive handbooks. Federal requirements still apply, and undocumented policies create unnecessary risk.
Employers often miss required federal policies for FMLA leave, ADA reasonable accommodation processes, equal employment opportunity language, and FLSA overtime requirements.
Missing federal compliance language
Generic templates often include state-specific language for California or New York but miss Texas-specific considerations. Templates may reference meal break requirements that don’t exist in Texas or omit important at-will employment language crucial for Texas employers.
Ignoring local or industry rules
Some Texas cities have enacted local employment ordinances. Austin, San Antonio, Dallas, and other municipalities have passed paid sick leave ordinances, though many have been preempted by state law. Employers should verify current local requirements.
Certain industries face additional requirements. Healthcare, oil and gas, construction, and other regulated industries have specific safety, training, and recordkeeping obligations that handbooks should address.
What to Look For in a Texas Handbook Builder
Federal + Texas policy coverage
Your handbook builder should automatically include all required federal policies while avoiding state-specific requirements that don’t apply in Texas. Look for tools that generate FLSA wage and hour policies, Title VII anti-discrimination and harassment policies, ADA accommodation procedures, FMLA leave policies for employers with 50+ employees, and clear at-will employment disclaimers.
Easy customization
Texas employers need flexibility to customize policies for their industry and culture. Your handbook builder should allow you to adjust policy language while maintaining legal compliance, add industry-specific safety policies, and choose benefits structures that fit your business.
Updates for law changes
Federal employment law changes regularly. Your handbook builder should monitor federal law changes, notify you when updates are needed, and automatically generate revised policy language.
Support for multi-state growth
Many Texas employers have remote workers in other states. Your handbook builder should recognize when employees work in states with additional requirements, generate state-specific addendums automatically, and maintain consistent federal policies across all locations.
How to Build a Texas-Compliant Handbook Step-by-Step
Enter company details
Provide your company name, headquarters location, industry, and number of employees. Indicate whether you have employees in other states beyond Texas.
Select required policies
The builder automatically includes federal requirements applicable to your business size—FLSA wage and hour policies, Title VII anti-discrimination policies, and at-will employment disclaimers. For employers with 50+ employees, FMLA leave policies are added.
Customize optional sections
Add company-specific policies like PTO and vacation policies, remote work arrangements, dress code standards, technology use policies, and professional development programs.
Review and export
Review the complete handbook for tone and clarity. Adjust language to match your company culture while maintaining legal protections. Export in PDF and Word formats and collect employee acknowledgments.
Texas Handbooks for Remote and Multi-State Teams
When other state laws apply
If you have employees working remotely from other states, their work location determines which state employment laws apply. A remote employee working from California must receive California-specific paid sick leave, meal break policies, and harassment prevention training—even though your headquarters is in Texas.
How to manage addendums
Quality handbook builders generate state-specific addendums automatically. You maintain one core handbook covering federal requirements and company policies, then attach state addendums for California, New York, Colorado, and other states where employees work.
Each addendum includes only that state’s unique requirements without changing your core Texas policies.
Why SixFifty Fits Texas Employers
Simple, state-aware workflows
SixFifty’s handbook builder recognizes that Texas employers need federal compliance without unnecessary state-level complexity. The platform generates comprehensive federal policies while maintaining the at-will employment protections critical for Texas businesses.
When you indicate Texas as your primary location, SixFifty focuses on federal requirements and Texas-specific considerations like payday frequency and final paycheck timing, without adding other requirements or state leave policies that don’t apply.
Built by legal experts
SixFifty’s policies are written by employment attorneys who understand federal compliance requirements and Texas employment law principles. The platform automatically updates when federal regulations change, ensuring your handbook stays current without requiring you to monitor Department of Labor or EEOC guidance.
As your business grows into other states, SixFifty generates appropriate state addendums while maintaining your Texas-based core policies.
FAQs About Texas Employee Handbooks
Does Texas require employee handbooks?
No. Texas doesn’t legally require employers to have handbooks. However, handbooks establish at-will employment, document federal compliance, create consistent policies, and reduce liability. Most employment lawyers recommend handbooks for any Texas business with 5+ employees.
What policies must be in a Texas handbook?
Texas itself mandates very few policies, but federal law requires equal employment opportunity policies, anti-harassment policies and complaint procedures, and FMLA leave policies for employers with 50+ employees. At-will employment disclaimers are essential for protecting termination flexibility.
How often should Texas handbooks be updated?
Review annually and update when federal employment laws change, you expand to states with different requirements, you modify benefits policies, or you reach 50 employees (triggering FMLA).
Do remote employees in other states need different policies?
Yes. Remote employees working from other states must receive that state’s required policies. A remote worker in Colorado needs Colorado’s paid sick leave policies even if your Texas handbook doesn’t include them. State-specific addendums handle this efficiently.
Can templates work for Texas employers?
Free templates often miss critical at-will employment language specific to Texas, include state requirements that don’t apply in Texas, lack current federal compliance language, and never update when laws change.
Build Your Texas-Compliant Handbook Today
Texas employers need handbooks that protect at-will employment status, ensure federal compliance, and scale as you grow into other states. A Texas-focused handbook builder handles federal requirements, maintains the flexibility Texas employers value, and generates state addendums automatically when you hire remote workers or expand to new locations.
Build or demo SixFifty’s handbook builder
Ready to create your Texas-compliant employee handbook? Schedule a demo to see how SixFifty builds federal-compliant handbooks with Texas-appropriate language, automatically updates policies when federal law changes, and scales seamlessly as you expand to other states.
