Silicon Valley has consistently been recognized as the global hub for companies specializing in technology. The Northern California region is the hotbed for technological giants such as Meta, Cisco, Apple, and other companies such as Chevron and Visa. The locale’s diversity and the richness of its culture and lifestyle make it a mecca for jobseekers and companies trying to stake a claim in the technology niche.
However, due to the high cost of doing business in the area, many companies are currently uprooting their offices and moving to other locales. They understand that while they can shoulder the cost of rent and other amenities, their workforce may prefer not to live in such an affluent area. This practical consideration is among the factors why some companies have begun to move their base of operations to Texas.
Companies moving to the state of Texas understand that they’ll pay a lower rental cost for their offices, and they know that they can also attract a more diverse set of employees. However, their management knows that they have to strictly follow the statutes and regulations of the area regarding their employees. They know that they have to provide competitive wages aside from a good incentives package for their personnel. They also have to get workers comp coverage in Texas to protect them from different risks.
If your company is looking to relocate to Texas, here are some things you need to consider as they will significantly affect your decision.
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Employment-at-will
Texas enforces the employment-at-will doctrine, which stipulates that an employer can summarily dismiss an employee for any reason, without warning, as long as the cause is not deemed illegal or prejudicial to the employee.
Likewise, any employee who no longer wishes to work for a particular company is free to do so without incurring any adverse legal sanctions. Of course, this setup has advantages and disadvantages for both parties involved, but one cannot deny that both parties stand to benefit from such a doctrine.
Right-to-work state
Aside from Texas being a state that enforces employment-at-will, it also is a right-to-work state. This means, under Texas law, no employee can be forced to join a union as a precondition for their employment. Unions can still operate in such places, but they cannot force anyone to join their ranks.
The right to work policy allows employees to become more financially free and holds unions accountable for their actions. However, some studies suggest that the more unions lose their hold with their members, the lesser economic power the employees enjoy.
Salaries and benefits
Employee compensation in the state is comparable to other places. However, agreements can be written or oral, but if the company contemplates using unusual pay methods for their workers, they have to put everything in writing.
Workers may or may not enjoy benefits such as retirement plans, health breaks, health care, and paid time off, so they must enumerate them in their employment agreement. The benefits may also change depending on the workers’ classification.
Final takeaway
Companies relocating to Texas need to understand the differences in running a company in the locale compared to their previous location. They have to ensure that they maximize productivity while providing their employees the legally mandated benefits they deserve.
