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TEXAS · WORKPLACE EQUITY & SEVERANCE LAW

Owed equity, bonuses or severance in Texas?

Equity, severance and employment-contract disputes in Texas generally turn on the agreement itself. Deadlines, forums and available remedies depend on the documents and what happened.

You can request a review before you sign anything, even if you are not sure what the agreement allows.

Updated August 2026

THIS MAY INCLUDE
  • Unpaid commissions, bonuses, equity, or deferred compensation
  • A disputed severance agreement or release
  • Noncompete, nonsolicit, confidentiality, or clawback terms
  • Retaliation or termination affecting vested or earned compensation

Texas equity, bonus, and severance disputes generally proceed as contract matters in court or arbitration. Texas may enforce a noncompete when it is tied to an enforceable agreement and contains reasonable limits. Contract claims generally use a four-year limitations period unless a more specific rule applies.

The firm represents employees statewide across Texas in equity compensation and severance matters. The state-level rules on this page apply wherever in Texas you worked. Compare deadlines across all states →

Texas at a glance.

Governing law
Texas employment-contract and covenant-not-to-compete law, Tex. Bus. & Com.
More detailCode §§ 15.50–15.52; Tex. Civ. Prac. & Rem. Code § 16.051
Coverage
No employee-count threshold. Rights depend on the agreement and applicable contract or compensation law.
Written-contract deadline
Texas generally applies a 4-year residual limitations period under Tex. Civ. Prac.
More detail& Rem. Code § 16.051 when no more specific period governs.
Administrative filing
None, equity, severance, and employment-contract disputes generally proceed in court or contractually required arbitration.
Forum
Contract claim or contractually required arbitration
Damages
Contract remedies are not governed by Chapter 21 or Title VII's employee-count damages-cap schedule.
Primary source, Tex. Bus. & Com. Code §§ 15.50–15.52; Tex. Civ. Prac. & Rem. Code § 16.051 ↗

What may be available under Texas contract and compensation law.

  • Contractual compensation or the value of equity proven due.
  • Benefit-of-the-bargain and other contract damages where available and proven.
  • Declaratory or injunctive relief in a restrictive-covenant dispute.
  • Attorney's fees only where authorized by contract or statute.
SPECIAL PROVISIONS WORTH KNOWING
  • A Texas noncompete must be ancillary to or part of an otherwise enforceable agreement.
  • Its limits as to time, geographic area, and scope must be reasonable and no broader than necessary to protect goodwill or another legitimate business interest.
  • A court may reform an overbroad covenant and then enforce it as reformed.
  • Healthcare-practitioner covenants have additional rules that should not be generalized to every executive agreement.

Where Texas contract disputes are resolved.

COURT / ARBITRATION

Contract claim or contractually required arbitration

These disputes do not begin with TWC or the EEOC. The agreement may require arbitration; otherwise the contract or restrictive-covenant dispute proceeds in court.

Free case review
Think you have a Texas equity compensation and severance claim?

A severance response date may be short even when the lawsuit deadline is longer. A private review identifies the governing documents, forum, and leverage before you sign.

Request a free case review

The same conduct can break more than one law.

What happened to you in Texas may also amount to a separate claim, with its own protections and its own deadlines. Each of these is worth checking before anything lapses.

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Discuss your situation with an employment attorney.

Answer a few brief questions about your workplace matter. Every submission is reviewed by the firm, and potential matters are reviewed by an attorney. Submitting does not create an attorney-client relationship; that begins only if the firm agrees in writing to represent you.

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