Does Texas have a freelance worker protection act?

No. Texas does not have freelance-specific legislation. Freelance contracts are governed by general contract law principles.

How does Texas classify freelancers vs. employees?

Texas uses the common law right-to-control test, examining factors like who controls the methods and means of work, payment structure, and the ability to hire/fire.

Can a Texas freelance contract include a non-compete?

Yes. Texas allows reasonable non-compete provisions when ancillary to an enforceable agreement and supported by adequate consideration.

Freelance Contract for Texas

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Texas legal context

Texas uses the common law right-to-control test for worker classification, which is generally more favorable to independent contractor relationships than California's ABC test. Texas does not have a state-specific freelance protection act, so contract terms are governed primarily by common law and the Covenants Not to Compete Act for restrictive provisions.

What's required

Independent Contractor Status (Texas Economic Reality Test)
Tex. Lab. Code § 201.041; IRS 20-factor test
IP Ownership and Work Product
17 U.S.C. § 101 (work for hire); common law assignment
Payment Terms and Late Payment
Tex. Fin. Code § 302.001 (usury limits)

What's prohibited

Employee benefits such as health insurance, PTO, or retirement contributions for the freelancer
Providing employee-type benefits to an independent contractor undermines the IC classification and may result in reclassification under the Texas economic reality test.
Language requiring the freelancer to work set hours, from a specific location, or under direct supervision
Excessive control over the manner and means of work performance undermines independent contractor status under the economic reality test applied by Texas courts and the IRS.

Key TX statutes

Texas Covenants Not to Compete Act
Tex. Bus. & Com. Code §§ 15.50-15.52
Governs non-compete provisions in freelance agreements, must be ancillary to an enforceable agreement.
Texas Business & Commerce Code
Tex. Bus. & Com. Code
Governs general contract formation, performance, and breach remedies.

Texas-specific considerations

Right-to-Control Test
Texas uses a multi-factor test focusing on the degree of control the hiring entity exercises over the worker's methods and means of performing work.
Non-Compete Allowed
Reasonable non-compete provisions are enforceable when ancillary to an otherwise enforceable agreement and supported by consideration.
No Freelance-Specific Act
Texas relies on general contract law rather than freelance-specific legislation, giving parties more drafting freedom.