Employment Practices Liability Insurance in Texas

Texas at a glance

Governing statute

Texas Labor Code Chapter 21

Formerly known as the Texas Commission on Human Rights Act.

Employer threshold

15 or more employees

Matches the federal Title VII threshold.

Enforcement agency

TWC Civil Rights Division

Investigates charges, often dual-filed with the EEOC.

Filing deadline

180 days

Charges must generally be filed within 180 days of the alleged violation.

Texas Labor Code Chapter 21 and its threshold

Texas Labor Code Chapter 21, sometimes still referred to by its former name, the Texas Commission on Human Rights Act, prohibits discrimination based on race, color, disability, religion, sex, national origin, and age, and it generally applies to employers with 15 or more employees, matching the federal Title VII threshold. Because the state and federal thresholds align, most Texas employers subject to Title VII are also subject to Chapter 21, and claims frequently proceed under both frameworks simultaneously.

A key procedural feature of Texas law is its 180-day filing deadline, which is shorter than the deadline available under federal law in some circumstances, so timing matters for both employees deciding when to file and employers tracking how long a claim might remain viable.

How a charge proceeds through the Texas Workforce Commission

Charges under Chapter 21 are filed with the Civil Rights Division of the Texas Workforce Commission, which investigates and can issue a determination or move the matter toward conciliation. Charges are commonly dual-filed with the EEOC given the overlapping thresholds. If the Division doesn't resolve the matter, the employee generally receives a right-to-sue notice and can pursue the claim in state court, subject to the applicable statute of limitations. Employers typically have a defined window to respond once notified, and Texas's comparatively tight 180-day charge-filing deadline means claims can move through the system fairly efficiently once initiated.

Texas-specific exposure notes

Texas's size and economic diversity — energy, construction, healthcare, retail, and logistics — mean the state sees a high volume of both discrimination charges and FLSA wage-and-hour litigation, with Texas federal courts historically handling a substantial share of national wage-and-hour caseloads. Texas does not have a statewide pay transparency or salary-history-ban law. Non-compete agreements are enforceable in Texas under a specific statutory framework (the Covenants Not to Compete Act) requiring reasonable limitations and consideration, and disputes over these agreements are common in Texas's energy and technology sectors.

What EPLI covers and staying ready for a 180-day clock

EPLI for Texas employers typically funds defense costs and settlements or judgments tied to Chapter 21 and Title VII discrimination claims, harassment, retaliation, and wrongful termination allegations, whether the case proceeds through the Texas Workforce Commission, the EEOC, or the courts. Because Texas's 180-day filing deadline means charges can surface relatively soon after an adverse employment action, keeping real-time documentation — not reconstructed after the fact — is especially valuable. A written handbook, consistent application of discipline, and prompt investigation of internal complaints all support a stronger position if a Chapter 21 charge is filed.

Who we write this for in Texas

Employment practices liability FAQs for Texas