Texas rules

Texas Teacher Contracts and Nonrenewal

Domain III. Human Capital 18%Domain VI. Ethics 5%

A note on this one. This post describes Texas statute and agency rule as I read them on October 20, 2026, written to help you answer exam questions. Rules change, districts differ, and this is not legal advice. For a real situation on your campus, go to your district counsel and to the current text at the sources linked below.

A principal who has never had to end a teacher's contract still gets tested on it, because the 268 does not care whether you have lived the scenario. It cares whether you know what the Education Code actually requires before a district can let a teacher go, and that is a narrower question than most candidates expect.

I have watched experienced leaders miss these items, not because they are careless, but because campus instinct and statutory requirement are two different things, and the exam is built around the gap between them.

Three contracts, three different exits

Texas Education Code Chapter 21 recognizes three kinds of teacher contracts, and each one carries a different path to ending employment. You can read the current chapter yourself at statutes.capitol.texas.gov.

  • Probationary contract. Used for a teacher new to the district or new to the profession.

It runs one year at a time and is capped at a small, fixed number of one-year renewals before the district has to move the teacher to a term contract or part ways.

  • Term contract. The contract most Texas teachers work under. It runs for a set number of

years and is renewed, or not, at the end of its term.

  • Continuing contract. A legacy category. Districts have not issued new ones for a long

time, so the only teachers who still hold one were hired under it years ago. The Code still protects the teachers who have one, even though the category is closed to new hires.

A principal who treats all three the same, assuming a first-year teacher has the same protections as a ten-year veteran, is answering from the hallway instead of the statute. That mismatch is exactly what Domain III and Domain VI items are built to catch.

The nonrenewal clock on a term contract

Ending a term contract at the close of its term is called nonrenewal, and the Code puts a clock on it. The board has to give the teacher written notice of a proposed nonrenewal by a deadline set in Chapter 21, well before the last day of instruction. Miss that deadline, and the contract renews automatically for the following school year in the same position. The board does not get a second chance to act after the fact.

Nonrenewal is also not a free judgment call. Each board has to adopt its own policy stating the reasons a nonrenewal can be based on, and a proposed nonrenewal has to fit one of those reasons. The teacher has the right to request a hearing before the decision becomes final.

Ending a term contract before it runs out, a discharge rather than a nonrenewal, sits on a higher bar. The Code allows it only for good cause as the board determines, or for a financial exigency that requires cutting staff. That is a different standard from nonrenewal, and items are built to make candidates confuse the two.

Checkpoint

Try one

Written the way the exam writes them. Every option is something a real leader might do.

A district's board decides in early May not to bring back a second-year teacher on a term contract. The last day of instruction is still well inside the notice window Chapter 21 sets for proposed nonrenewal, but no written notice has gone out yet. What happens to the contract if the deadline passes with nothing sent?

Why Human Capital and Ethics both claim this

Domain III covers the people side of the job: hiring, induction, evaluation, and growing who is already on the campus. Deciding who stays for another year is squarely that work, which is why contract decisions show up there.

Domain VI covers the legal duties that sit on a principal, and a nonrenewal or discharge decision is also squarely a legal act, not a managerial preference. The same scenario can sit in either domain depending on what the stem is actually asking. If it is asking whether the decision was built the right way procedurally, that is Domain VI. If it is asking whether the decision reflects sound judgment about the person and the role, that is Domain III. Learning to tell those two questions apart, inside the same scenario, is most of what these items test.

The distinction probationary and term contracts hide

The gap candidates miss most often is not between nonrenewal and discharge. It is between a probationary contract ending at the close of its term and a term contract doing the same thing. A probationary contract gives the board more room to simply not continue the teacher at year's end, without the same cause-finding a term contract discharge requires mid-year. An item that quietly swaps a probationary-contract teacher for a term-contract teacher, and expects you not to notice, is a favorite way to build a wrong answer that otherwise looks correct.

One caution, and I mean it

Everything above describes what the Education Code says, for exam purposes. It is not an assessment of any real teacher, any real nonrenewal, or any real board decision.

The deadlines, caps, and standards described here come from a chapter that the legislature amends from time to time, and the version in force on your exam date may differ in its exact figures from the version I am describing. If a real contract decision is in front of you, the current text at the source above, your district's own policy, and your district's counsel are the authority, not a study post.

For the exam, the useful takeaway is narrower: know which of the three contracts you are looking at, know that nonrenewal and mid-term discharge are different standards, and know that a missed deadline favors the teacher, not the board. The full weight these two domains carry against the other four is on the 268 boot camp page, and the companion piece on the Educators Code of Ethics covers the other half of Domain VI.

The free seven-day trial opens the strategy module and Domain I, with practice items built the way the real exam builds them.

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Where this sits

On the 268 blueprint

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Dr. Jason Ampel

Written by

Dr. Jason Ampel

Founder of Principal Ready. I have helped more than 70,000 candidates pass high-stakes certification exams, and I build this course with Christie Ray, a Principal of the Year who has sat in the chair these questions describe. More about the team.

Written for Texas. Other states are on the way. The leadership thinking travels; the statute does not.

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