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Payment upon Separation from Employment
Employees who are fired, discharged, terminated, or laid off
An employer must pay an employee who is discharged or laid off all wages due within six
days after the date the employee is discharged. Texas Labor Code 61.014
Employees who quits, is laid off, or resigns due to a labor dispute (strike)
An employer must pay an employee who quits or leaves employment for any reason other
than discharge all wages due not later than the next regularly scheduled payday. Texas
Labor Code 61.014
Wages in Dispute
Texas does not have any laws requiring an employer to pay an employee wages conceded
to be due when involved in a wage dispute with the employee.
Deductions from Wages
61.018 - An employer may not withhold or divert any part of an employee's wages unless
the employer:
(1) is ordered to do so by a court of competent jurisdiction;
(2) is authorized to do so by state or federal law; or
(3) has written authorization from the employee to deduct part of the wages for a lawful
purpose.
items only if the employee has consented to it in writing:
- cash shortages
- breakage, damage, or loss of the employer's property
- required uniforms
- required tools or other items necessary for employment
- loans (TX Admin Code 821.27)
Presumably, an employer cannot taken any adverse employment action against an
employee for refusing to consent to a deduction.
TX Labor Code 61.018
An employee's written authorization for deductions must be specific as to the purpose for
which the employee has accepted the responsibility or liability. Written authorizations must
be:
- sufficient to give the employee a reasonable expectation of the amount to be withheld from
pay; and
- a clear indication that the deduction is to be withheld from wages.
If an employer uses a handbook, policy manual or other similar document instead of a
separate writing, the employee's signed acknowledgment of receipt of company policies
can be authorization to withhold wages if the acknowledgment meets the consent
requirements listed above. The signed acknowledgment of receipt must also include
language that states that the employee agrees to abide by or be bound to the authorization
for deduction.
TX Admin Code 40.20.821.28
Uniforms, Tools, and Other Equipment Necessary for Employment
Texas does not have any laws prohibiting an employer from requiring an employee to
purchase a uniform, tools, or other items necessary for employment.
Medical or Physical Exams, including Drug Tests, Required for Employment
Texas does not have any laws prohibiting an employer from requiring an applicant or
employee to pay the cost of a medical examination or the cost of furnishing any records
required by the employer as a condition of employment.
Notice of Wage Reduction
Texas does not have any laws addressing when or how an employer may reduce an
employees wages or whether an employer must provide employees notice prior to
instituting a wage reduction.
Statement of Wages (Pay Stub)
At the end of each pay period, an employer must give each employee a written earnings
statement covering the pay period. The statement must be signed by the employer and
must show:
(1) the name of the employee;
(2) the rate of pay;
(3) the total amount of pay earned by the employee during the pay period;
(4) any deduction made from the employee's pay and the purpose of the deduction;
(5) the amount of pay after all deductions are made; and
(6) the total number of:
(A) hours worked by the employee if the employee's pay is computed by the hour; or
(B) units produced by the employee during the pay period if the employee's pay is
computed on a piece rate
Texas Labor Code 62.003
Record Keeping Requirements
Texas does not have any laws requiring an employer to keep any employment-related
documents.
Federal law requires every employer covered by the Fair Labor Standards Act (FLSA) to
keep certain records for each covered, nonexempt worker, for at least 3 years. For more
information, visit FLSA.
Frequency of Wage Payments
An employer must pay wages to each employee who is not exempt from the overtime pay
at least twice per month (semi-monthly). If wages are paid twice a month, each pay period
must consist as nearly as possible of an equal number of days. An employer must pay an
employee exempt from overtime at least once per month. Texas Labor Code 61.011
An employer must designate paydays. If an employer fails to designate paydays, the
employer's paydays are the first and 15th day of each month. An employer must post, in
conspicuous places in the workplace, notices indicating the paydays. Texas Labor Code
61.012
An employer must pay an employee who is not paid on a payday for any reason, including
the employee's absence on a payday, on another regular business day on the employee's
request. Texas Labor Code 61.013
Manner of Payments
An employer may pay wages to an employee by:
- cash;
- check redeemable on demand at full face value without deduction or fee; or
- direct deposit if the employer:
(1) notifies each affected employee in writing, at least 60 days before the date on
which the direct deposit payroll system is scheduled to begin, that the employer is
adopting a direct deposit payroll system; and
(2) obtain from the employee any information required by the financial institution in
which the employee maintains the account that is necessary to implement the
electronic funds transfer.
An employee may agree in writing to receive part or all of the wages in kind or in another
form.
Texas Labor Code 61.016; Texas Labor Code 61.017
Direct Deposit
An employer may pay an employee by direct deposit if the employer:
(1) notifies each affected employee in writing, at least 60 days before the date on which the
direct deposit payroll system is scheduled to begin, that the employer is adopting a direct
deposit payroll system; and
(2) obtain from the employee any information required by the financial institution in which
the employee maintains the account that is necessary to implement the electronic funds
transfer.
Texas Labor Code 61.016; Texas Labor Code 61.017
EmploymentLawHandbook.com
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Your Employment and Labor Law Resource
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Notice Requirements
An employer must post, in conspicuous places in the workplace, notices indicating the
paydays. Texas Labor Code 61.012
Wage Payment Laws for Private Sector Employers
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Topics Covered:
- Frequency of Wage Payments
- Manner of Payments
- Payment upon Separation from Employment
- Employees who are fired, discharged, or terminated
- Employees who quit or resign
- Employees who is suspended or resigns due to a labor dispute (strike)
- Employees who are laid off
- Wages in Dispute
- Cash shortages
- Damage, loss or destruction of employer property
- Dishonored or returned checks
- Uniforms
- Tools and other items necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of Wage Reduction
- Statement of Wages (Pay Stub)
- Record Keeping Requirements
- Notice Requirements