Is there a grace period for employees to clock in to work in the state of Texas?

I'm not sure I understand your question, so if I don't answer it, please feel free to respond and clarify.  I assume you are talking about hourly employees who "punch in" on an electronic or mechanical time clock.  The beginning time for their payment for the day would start when they punch in.  So if an employee is supposed to begin work at 8:00 and doesn't clock in until 8:07, the time for which you are paying him doesn't begin until 8:07.  You should make sure that the employees are clocking in immediately when they do begin work and are not clocking in after they do so.  Payroll issues aside, you are free to terminate or discipline an employee who is late to work. I am unaware of any concept of "grace period" in the law.  However in certain industries and fact-specific situations, an employer is required to pay employees for the time it takes to put on and take off specialized personal protective equipment.  If such activities are part of your employees' day, then there is a much longer discussion involved.