Summary of July 2025 Labor Law Updates for Houston, Texas
Welcome to our monthly roundup of July 2025 Texas labor law updates, brought to you by the Houston team from HKM Employment Attorneys. This summary is tailored for employees, HR professionals, and compliance leaders seeking practical insights into current legal developments in Texas workplace law.
July 2025 brought sweeping developments across Texas labor and employment law—from court rulings reshaping nondiscrimination and overtime enforcement, to legislative reforms impacting healthcare non-competes, business court venues, and job ad requirements. If you’d like further guidance on implementing these changes—or need assistance with corporate policies, job postings, or litigation strategy—please reach out to HKM Employment Attorneys at hkm.com.
Federal Court Vacates EEOC Gender-Identity Harassment Guidance — Court Ruling
Date: May 15, 2025 (decision continued impact in July)
Summary: A federal district court in Texas vacated parts of the EEOC’s 2024 enforcement guidance concerning sexual orientation and gender identity. The court held that expanding the definition of “sex” under Title VII to encompass bathroom, pronoun, and dress preferences exceeded the EEOC’s authority. This vacatur applies nationwide and is not limited to the parties in the case.
Implications: This ruling severely limits EEOC-enforced protections for transgender employees under federal law, likely impacting workplace policies and employer liability risk across Texas and beyond. Employers should reassess training, harassment prevention efforts, and nondiscrimination policies with these changes in mind, while noting continued reliance on Supreme Court precedent in Bostock v. Clayton County.
Senate Bill 1318 – Restricting Non-Competes for Healthcare Workers — Legislation
Date Reported: July 10, 2025
Effective Date: September 1, 2025
Summary: SB 1318 significantly narrows non‑compete agreements for physicians, dentists, nurses, and physician assistants. Restrictions include:
Maximum duration of one year post-employment
Geographic limit of five miles from the worker’s primary practice location
Caps on buyouts, and prohibition of enforcement if termination was without “good cause”
Implications: Employers in healthcare must overhaul their non‑compete templates for covered professionals to ensure compliance. This change could affect retention strategies and post‑employment boundaries across Texas.
Reporting Pay Range in Job Ads Requirement — Legislation/Regulation
Date Reported: July 21, 2025
Summary: Employers must disclose hourly wages or salary ranges and general benefit descriptions in job postings, applicable to both internal and external listings
Implications: This continues the broader trend toward pay transparency. Employers should update job ad templates across recruitment channels to ensure compliance—reducing legal risk and enhancing pay equity.
Conclusion: Looking Back on Texas’ Labor Law Updates from July 2025
With Texas courts increasingly addressing wage-and-hour disputes, discrimination, and contract enforcement, you don’t have to stay stuck in uncertainty. At HKM Employment Attorneys in Houston, our seasoned attorneys—such as Alvin Adjei and Taylor Jones—are deeply versed in discrimination, hostile work environments, contractual breaches, wage theft, whistleblower claims, and more. Our Houston team combines responsive communication, national recognition, and no‑fee‑unless‑we‑win advocacy to help local employees navigate complex workplace issues. If recent case rulings hit close to your experience, reach out to our Houston office and let us help you assert your rights and pursue meaningful justice.
