# Texas — State employment law headcount triggers that deviate from federal thresholds For Texas, law category is other; state law name is Texas Payday Law; state threshold is 1; federal threshold is 1; key differences is State payday law applies to any private-sector employer with at least one employee, matching FLSA's general applicability but specifically addressing anything relating to employee pay under Texas state law, recorded from its source on 2026-08-14. - **State:** Texas _(verified: appears in the quote below)_ - **Law category:** other _(our reading, not quoted from the source)_ - **State law name:** Texas Payday Law _(verified: appears in the quote below)_ - **State threshold:** 1 _(verified: appears in the quote below)_ - **Federal threshold:** 1 _(verified: appears in the quote below)_ - **Key differences:** State payday law applies to any private-sector employer with at least one employee, matching FLSA's general applicability but specifically addressing anything relating to employee pay under Texas state law - **Coverage / scope:** Anything relating to employee pay _(verified: appears in the quote below)_ - **Statute citation:** Texas Labor Code, Chapter 61, § 61.001(4) ## What the source says > 1 employee | Any private-sector employer | Texas Payday Law | Anything relating to employee pay ## Sources disagree More than one authority states this, and they do not state the same thing. Both are reproduced with the source each came from. ### State law name efte.twc.texas.gov says state law name is **Texas Payday Law**, as of 2026-08-14. > 1 employee | Any private-sector employer | Texas Payday Law | Anything relating to employee pay Source: https://efte.twc.texas.gov/thresholds_for_coverage.html efte.twc.texas.gov says state law name is **Texas Unemployment Compensation Act (for-profit/government)**, as of 2026-08-14. > 1 employee | For-profit/government | Federal Unemployment Tax Act and Texas Unemployment Compensation Act | Unemployment compensation Source: https://efte.twc.texas.gov/thresholds_for_coverage.html efte.twc.texas.gov says state law name is **Texas Unemployment Compensation Act (non-profit)**, as of 2026-08-14. > 4 employees | Non-profit | Texas Unemployment Compensation Act | Unemployment compensation Source: https://efte.twc.texas.gov/thresholds_for_coverage.html ### State threshold efte.twc.texas.gov says state threshold is **1**, as of 2026-08-14. > 1 employee | Any private-sector employer | Texas Payday Law | Anything relating to employee pay Source: https://efte.twc.texas.gov/thresholds_for_coverage.html efte.twc.texas.gov says state threshold is **1**, as of 2026-08-14. > 1 employee | For-profit/government | Federal Unemployment Tax Act and Texas Unemployment Compensation Act | Unemployment compensation Source: https://efte.twc.texas.gov/thresholds_for_coverage.html efte.twc.texas.gov says state threshold is **4**, as of 2026-08-14. > 4 employees | Non-profit | Texas Unemployment Compensation Act | Unemployment compensation Source: https://efte.twc.texas.gov/thresholds_for_coverage.html ### Key differences efte.twc.texas.gov says key differences is **State payday law applies to any private-sector employer with at least one employee, matching FLSA's general applicability but specifically addressing anything relating to employee pay under Texas state law**, as of 2026-08-14. > 1 employee | Any private-sector employer | Texas Payday Law | Anything relating to employee pay Source: https://efte.twc.texas.gov/thresholds_for_coverage.html efte.twc.texas.gov says key differences is **Mirrors the federal threshold; both federal and state unemployment compensation laws apply to for-profit employers and government entities with at least one employee**, as of 2026-08-14. > 1 employee | For-profit/government | Federal Unemployment Tax Act and Texas Unemployment Compensation Act | Unemployment compensation Source: https://efte.twc.texas.gov/thresholds_for_coverage.html efte.twc.texas.gov says key differences is **Non-profit employers in Texas must have four or more employees to be covered by the state unemployment compensation act, compared to the federal threshold of one employee**, as of 2026-08-14. > 4 employees | Non-profit | Texas Unemployment Compensation Act | Unemployment compensation Source: https://efte.twc.texas.gov/thresholds_for_coverage.html ### Coverage / scope efte.twc.texas.gov says coverage / scope is **Anything relating to employee pay**, as of 2026-08-14. > 1 employee | Any private-sector employer | Texas Payday Law | Anything relating to employee pay Source: https://efte.twc.texas.gov/thresholds_for_coverage.html efte.twc.texas.gov says coverage / scope is **Unemployment compensation for for-profit and government employers**, as of 2026-08-14. > 1 employee | For-profit/government | Federal Unemployment Tax Act and Texas Unemployment Compensation Act | Unemployment compensation Source: https://efte.twc.texas.gov/thresholds_for_coverage.html efte.twc.texas.gov says coverage / scope is **Unemployment compensation for non-profit employers**, as of 2026-08-14. > 4 employees | Non-profit | Texas Unemployment Compensation Act | Unemployment compensation Source: https://efte.twc.texas.gov/thresholds_for_coverage.html ### Statute citation efte.twc.texas.gov says statute citation is **Texas Labor Code, Chapter 61, § 61.001(4)**, as of 2026-08-14. > 1 employee | Any private-sector employer | Texas Payday Law | Anything relating to employee pay Source: https://efte.twc.texas.gov/thresholds_for_coverage.html efte.twc.texas.gov says statute citation is **Texas Labor Code, Chapter 201, §§ 201.021(a) and 201.023**, as of 2026-08-14. > 1 employee | For-profit/government | Federal Unemployment Tax Act and Texas Unemployment Compensation Act | Unemployment compensation Source: https://efte.twc.texas.gov/thresholds_for_coverage.html efte.twc.texas.gov says statute citation is **Texas Labor Code, Chapter 201**, as of 2026-08-14. > 4 employees | Non-profit | Texas Unemployment Compensation Act | Unemployment compensation Source: https://efte.twc.texas.gov/thresholds_for_coverage.html ## Source - https://efte.twc.texas.gov/thresholds_for_coverage.html Last verified: 2026-08-14. Review by: 2027-02-10. Part of [State employment law headcount triggers that deviate from federal thresholds](https://referencesource.org/state-employment-law-headcount-triggers/).