Texas maintains one of the most minimal approaches to pay transparency in the United States, with extremely limited statutory requirements focused primarily on annual notification about the Earned Income Tax Credit (EITC). Unlike many states that have enacted comprehensive salary posting and disclosure laws, Texas has not adopted pay transparency legislation, though the state does require employers to inform employees about federal tax credit opportunities that may benefit low to moderate income workers.
Here’s what you need to know about Texas pay transparency law requirements for 2025.
Core Law & Compliance
What Is the Texas Pay Transparency Law? (2025 Update)
Texas’s approach to pay transparency is governed by a single, limited requirement: employers must notify their employees of the federal Earned Income Tax Credit no later than March 1st of each year, as administered through the Texas Workforce Commission.
This notification requirement is designed to ensure that employees are aware of a federal tax credit that provides financial benefits to working people with low to moderate income, potentially resulting in significant tax refunds for eligible workers.
Employers can satisfy this requirement by using IRS Notice 797 or providing a written statement with the same wording, and the notice can be delivered through various methods including in-person delivery, email, inclusion with pay stubs, or first-class mail.
Beyond this EITC notification requirement, Texas does not have state laws requiring salary ranges in job postings, wage disclosure to applicants, comprehensive compensation transparency, or explicit protections for wage discussions at the state level.
Texas Salary Posting Requirements for Employers
Texas does not require employers to include salary ranges or wage information in job postings, distinguishing it from states like California, Washington, and New York that mandate upfront compensation disclosure in job advertisements.
The state also does not require employers to provide salary range information to job applicants during the hiring process, whether upon request, after interviews, or at any other specific stage of recruitment.
Texas’s only transparency-related requirement is the annual EITC notification, which is focused on informing employees about federal tax benefits rather than compensation disclosure during hiring or employment.
This minimal approach allows Texas employers maximum flexibility in their recruitment, hiring, and compensation disclosure practices while maintaining only the basic federal tax credit notification obligation.
When Did/Does the Texas Pay Transparency Law Take Effect?
Texas’s EITC notification requirement has been in effect as part of the state’s employment law framework, with the annual March 1st deadline applying to all covered employers.
The state has not enacted recent legislation expanding pay transparency requirements, and no comprehensive disclosure laws are currently pending in the Texas legislature.
However, there has been some legislative activity, with HB 2196 (2025) proposing mandatory pay range disclosure for public-sector jobs, though this has not yet been enacted into law.
Employer Responsibilities
Which Employers Must Comply With the Texas Pay Transparency Law?
Texas’s EITC notification requirement applies to all employers operating in the state, regardless of size or industry. For purposes of this requirement, an employer is defined as any person or business that employs one or more employees, and an employee is an individual employed by an employer for compensation.
This universal application ensures that all Texas workers have access to information about federal tax credits that may provide significant financial benefits, particularly for low to moderate income workers.
The requirement applies to all employers doing business in Texas, reflecting the state’s commitment to ensuring workers are informed about available federal tax benefits regardless of employer size.
Texas Pay Transparency Thresholds by Employer Size
Texas does not use employer size thresholds for its EITC notification requirement. All employers, from small businesses with a single employee to large corporations, have the same obligation to notify employees about the Earned Income Tax Credit by March 1st of each year.
This universal approach reflects the fundamental nature of the requirement and ensures that all workers have equal access to information about federal tax benefits that could provide substantial financial assistance.
The absence of size thresholds means that compliance obligations are consistent across all employers, though the requirement itself is substantially more limited than comprehensive pay transparency laws in other states.
Penalties for Violating the Texas Pay Transparency Law
Texas enforces its EITC notification requirement through the Texas Workforce Commission. Violations may be addressed through the state’s employment law enforcement framework, though specific penalties for failing to provide the required notification are not extensively detailed in the available statutes.
The enforcement framework is minimal compared to states with comprehensive pay transparency laws, reflecting the limited scope of Texas’s requirements and the state’s approach to employment regulation.
Employers should ensure compliance with the March 1st deadline and proper delivery methods to avoid potential enforcement issues, even though the penalties may be less severe than in states with comprehensive transparency frameworks.
Employee Rights & Impact
What Employees Should Know About the Texas Pay Transparency Law
Texas employees have very limited rights related to pay transparency compared to workers in states with comprehensive disclosure laws. The primary right is to receive annual notification about the federal Earned Income Tax Credit, which can provide substantial tax refunds for eligible low to moderate income workers.
The EITC notification must be provided by March 1st each year and can be delivered through various methods, ensuring that employees are informed about this valuable federal tax benefit.
However, Texas employees do not have statutory rights to salary range information in job postings, wage disclosure during the hiring process, comprehensive compensation transparency, or explicit protection for wage discussions with colleagues under state law.
Employees must rely primarily on federal protections and voluntary employer practices for most compensation transparency beyond the basic EITC notification.
Employee Rights Under Texas Salary Posting Law
Texas does not have salary posting requirements, so employees do not have rights to compensation information in job advertisements or during the application process under state law.
The state’s extremely limited transparency framework provides minimal rights beyond the annual EITC notification, meaning job seekers and current employees have virtually no statutory rights to compensation information under state law.
Current employees’ primary right is limited to receiving annual notification about federal tax credit opportunities that may provide financial benefits.
This minimal framework means that Texas employees must rely almost entirely on voluntary employer practices, market forces, and federal protections for compensation transparency.
How the Texas Pay Transparency Law Helps Reduce Wage Gaps
Texas’s minimal transparency requirements provide very limited direct support for reducing wage gaps compared to comprehensive disclosure laws in other states.
The EITC notification helps ensure that low to moderate income workers are aware of federal tax credits that can provide substantial financial benefits, potentially helping to address income inequality through the federal tax system rather than workplace transparency.
However, without comprehensive disclosure requirements, salary posting mandates, or explicit wage discussion protections, Texas’s approach provides minimal systemic support for identifying and addressing wage disparities through transparency measures.
The state’s approach relies primarily on federal tax policy and voluntary employer practices rather than mandated transparency to address compensation equity concerns.
HR & Legal Best Practices
How HR Teams Can Comply With Texas Pay Transparency Law
HR teams should establish procedures for providing the annual EITC notification to all employees by March 1st each year, using IRS Notice 797 or a written statement with equivalent wording.
Creating standardized delivery methods helps ensure consistent compliance, whether through in-person delivery, email distribution, inclusion with pay stubs, or first-class mail to employees’ last known addresses.
HR teams should maintain records of notification delivery to demonstrate compliance with the annual requirement and ensure that all employees receive the information about federal tax benefits.
While not required by Texas law, many HR teams choose to implement voluntary transparency practices to attract talent, promote internal equity, and align with national trends, particularly when hiring across multiple states.
Updating Job Postings to Meet Texas Salary Transparency Rules
Texas does not require salary ranges or wage information in job postings, so no updates are necessary for compliance purposes under state law.
Employers have complete discretion in whether to include compensation information in job advertisements, allowing them to make strategic decisions based on competitive considerations and organizational culture.
However, Texas employers hiring remote workers in states with pay transparency laws must comply with those states’ requirements, making it important for HR teams to track requirements in other jurisdictions.
Many Texas employers choose to include salary ranges voluntarily to attract candidates and demonstrate transparency, even though it is not legally required under state law.
Does the Texas Pay Transparency Law Apply to Remote or Hybrid Workers?
Texas’s EITC notification requirement applies to all employees working for Texas employers, regardless of work arrangement or location.
Remote and hybrid workers have the same rights to receive annual EITC notification as in-office employees under the limited state requirements.
The minimal scope of Texas’s requirements means that remote work arrangements do not create additional compliance complexities at the state level, though employers hiring remote workers in other states must comply with those jurisdictions’ transparency laws.
Comparison and Broader Context
How Texas Pay Transparency Rules Compare With California and New York
Texas’s approach differs dramatically from California and New York, which have comprehensive salary posting requirements, detailed disclosure obligations, and robust enforcement frameworks for pay transparency.
While California and New York require upfront salary disclosure in job postings, extensive pay data reporting, and comprehensive anti-discrimination enforcement, Texas requires only annual EITC notification.
The contrast highlights Texas’s preference for minimal regulatory intervention compared to the comprehensive transparency frameworks adopted by more progressive states, representing one of the most limited approaches in the nation.
Federal Pay Transparency Requirements vs. Texas Law
Texas’s requirements are substantially more limited than current federal protections in most areas, providing workers with fewer transparency rights and weaker enforcement mechanisms than federal law in many circumstances.
Federal protections under the National Labor Relations Act for wage discussions, the Equal Pay Act for gender-based wage discrimination, and Title VII for broader anti-discrimination protections often exceed Texas’s explicit state-level requirements.
Texas’s minimal approach means that federal law provides the primary protection for workers regarding compensation transparency, anti-discrimination, and employee rights related to wage discussions.
Pay Transparency Laws by State: Where Does Texas Stand?
Texas ranks among the states with the most minimal pay transparency requirements in the nation, providing virtually no disclosure obligations compared to the growing number of states with comprehensive transparency laws.
The state’s approach represents the minimal end of the spectrum in pay transparency legislation, contrasting sharply with progressive states that have enacted extensive posting, disclosure, and reporting requirements.
Texas’s position reflects broader political and regulatory preferences within the state, emphasizing minimal government intervention in employment relationships while maintaining only basic federal tax credit notification requirements.
FAQs About the Texas Pay Transparency Law
Do small businesses need to comply with Texas pay transparency law?
Yes, all Texas employers, regardless of size, must comply with the EITC notification requirement, which means providing annual notification to employees about the federal Earned Income Tax Credit by March 1st of each year. However, this is Texas’s only transparency requirement, making compliance extremely straightforward compared to comprehensive transparency laws in other states. The requirement applies to any employer with one or more employees.
How should employers update existing job postings?
Texas does not require salary ranges or wage information in job postings, so no updates are necessary for compliance purposes under state law. Employers have complete discretion in whether to include compensation information in job advertisements. Many choose to include salary ranges voluntarily to attract candidates, but this is entirely a business decision rather than a legal requirement under Texas law. However, employers hiring remote workers in other states must comply with those states’ transparency requirements.
Are salary ranges required for internal postings as well as external ones?
No, Texas does not require salary ranges in any job postings, whether internal or external. The state’s only requirement is annual EITC notification and does not extend to recruitment or posting practices. Employers may choose to include compensation information in job postings voluntarily, but there is no legal obligation to do so under Texas law.
What happens if employers fail to disclose salaries?
Since Texas does not require salary disclosure in job postings, during the hiring process, or at any point other than the annual EITC notification, there are no penalties for failing to provide salary information in most circumstances. However, employers who fail to provide the required annual EITC notification by March 1st may face enforcement action through the Texas Workforce Commission, though specific penalties are not extensively detailed in the statutes. The primary compliance obligation is ensuring all employees receive proper notification about federal tax credit opportunities.
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