New hiring laws in Texas for 2027: TRAIGA, unemployment changes and the federal rules that changed instead

As of October 2026, Texas enacted almost no new hiring rules for 2026 or 2027. Two statutes from the 2025 session took effect on January 1, 2026: the Texas Responsible Artificial Intelligence Governance Act (TRAIGA, HB 149), which bars developing or deploying an AI system with intent to unlawfully discriminate against a protected class, and HB 3699, which changes who counts as a claimant's last employer in unemployment claims. No Texas statute we found changes hiring in 2027. The changes Texas employers actually have to act on in 2026 and 2027 are federal: Form I-9 edition dates, the end of automatic extensions for certain work permits, and the EEOC's withdrawal of its criminal records guidance.

This page lists those items with their primary sources, then the 2025 Texas laws that still shape day-to-day hiring and the rules that did not change. The standing checklist (Texas Workforce Commission account, new-hire reporting, required notices) is in our Texas hiring hub.

Which hiring laws changed in Texas in 2026, and what changes in 2027?

Texas statutes and the federal rules that apply to Texas employers, sorted by date.

What does TRAIGA require of Texas employers?

Less than many recruiters expect. The enrolled text of HB 149, which "takes effect January 1, 2026," adds Business and Commerce Code section 552.056: "A person may not develop or deploy an artificial intelligence system with the intent to unlawfully discriminate against a protected class in violation of state or federal law," and "a disparate impact is not sufficient by itself to demonstrate an intent to discriminate." Protected class includes race, color, national origin, sex, age, religion and disability. There is no duty for a private employer to disclose AI use to applicants and no bias audit requirement.

Under section 552.101 the Attorney General "has exclusive authority to enforce" the chapter, so candidates cannot sue under it. Before suing, the Attorney General must give written notice and wait 60 days, and a person who cures the violation and gives a written statement of the fix and the policy changes avoids the action. Uncured violations carry civil penalties of $10,000 to $12,000 each if curable, $80,000 to $200,000 each if a court finds them uncurable, and $2,000 to $40,000 a day for continuing violations. The longer explanation, including how TRAIGA sits next to Title VII and the Texas biometric consent law, is in Texas AI hiring law; the national picture is in AI hiring laws by state.

In practice, keep a short written record of what each AI screening or scoring tool does and why it was chosen. A tool that only transcribes or summarizes an interview for a person who decides is a different thing from one that ranks or rejects candidates, and the second kind is where questions about intent and impact will start.

What changed in Texas unemployment rules?

HB 3699 "takes effect January 1, 2026" and applies to claims filed with the Texas Workforce Commission on or after that date. The Commission's own 2025 legislative summary describes it as restricting "the definition of 'last work' for unemployment claims to employers that meet coverage and liability requirements." For staffing agencies, which often are a claimant's most recent employer, it is worth checking that separation information sent to the Commission identifies the right employer account.

A related 2025 law is already in force. SB 1786 rewrote Labor Code section 204.0025 so the Commission "shall" work with employers to enhance routine wage filings with "wage, industry, occupational field, full-time and part-time status, county of primary employment, remote work status" and similar data. The Commission sets how; keep job titles, county and remote status clean in your HR system so the data is ready when the wage report asks for it.

Which 2025 Texas laws still shape hiring in 2026?

• Health care non-competes. SB 1318 took effect September 1, 2025 and applies to covenants "entered into or renewed on or after" that date. It limits non-competes for physicians, dentists, nurses and physician assistants, including a buyout cap, a one-year limit and a five-mile radius; details are in Texas non-compete law. When recruiting clinicians, ask when their agreement was signed or last renewed.
• Facilities serving children. HB 3153, effective September 1, 2025, requires residential treatment facilities and group homes regulated by the Health and Human Services Commission, juvenile detention facilities and county or city homeless shelters to review state criminal history and verify employment, contacting previous employers listed on the application "to the extent possible," for applicants selected for jobs, volunteer roles or contracts with direct contact with children, and to get Department of Public Safety arrest and conviction updates afterward.

Which Texas hiring rules did not change?

• No pay range or salary history law. Texas does not require pay ranges in postings or ban salary history questions; postings for remote roles open to other states may still need ranges under those states' laws, see pay transparency laws by state.
• Criminal history. No state ban-the-box law for private employers. With the EEOC guidance rescinded, a job-related review using the Green factors from the 1975 Eighth Circuit case (the nature and gravity of the offense, the time since it and the nature of the job) remains a sound way to decide and document; Title VII and the FCRA steps still apply. See Texas background check laws.
• E-Verify is required only in the public and state-contract settings described in E-Verify requirements in Texas.
• Recording interviews still needs only one party's consent; see Texas recording consent for interviews.
• Staffing businesses still need no general state license; see Texas staffing agency rules.

What should Texas employers do before January 1, 2027?

1. Inventory AI hiring tools, note which ones score, rank or reject candidates, and keep the reason each was chosen and any testing results in writing.
2. Check Form I-9 versions: paper forms should be the 01/20/25 edition or the 08/01/23 printing that expires 05/31/2027, and electronic systems should show the 05/31/2027 version.
3. Review reverification dates for employees on EADs in the affected categories, since a timely renewal no longer extends the card automatically.
4. Update criminal history guidance so it no longer cites the 2012 EEOC guidance and records a job-related reason for each decision.
5. Collect clinician non-compete dates during screening, and add the HB 3153 checks if you staff children's facilities.

What does this mean for staffing agencies in Texas?

Little changed at the state level: no licensing, pay range or E-Verify mandate was added for private staffing firms. The work for 2027 is federal paperwork and record quality: I-9 versions and EAD reverification for every temporary worker an agency employs, clean separation data for unemployment claims under HB 3699, and documented reasons for background check decisions now that the EEOC guidance is gone. Agencies acting as employer of record should also see our Texas employer of record guide. Other states' 2027 changes, for staff you place outside Texas, are in new hiring laws for 2027.