Both Chapter 21 of the Texas Labor Code and the federal discrimination laws prohibit discriminatory selection for needed layoffs (based on age, gender, national origin, disability, FMLA leave), and Chapter 451 of the Texas Labor Code prohibits discrimination against those who've filed and are out on workers' comp, and there is a federal law governing mass layoffs/plant closings (called the WARN Act), but Texas is an at-will state and there is no requirement for severance, or specific criteria required for layoffs. Generally, as a "best practice", employers should set up some sort of criteria prior to selecting individuals for layoffs, either performance or seniority-based, as this gives them a better defense if discrimination on one of the protected grounds above is later claimed, but this is not required under any statute. Laid off employees are entitled to unemployment compensation benefits through the TWC, and most employers will also give some kind of severance pay.