Texas Law Regarding Final Paychecks
Texas law protects an employee’s right to receive their final paycheck. Here’s everything you need to know about Texas final paycheck laws
Under the Texas Payday Law, employees must receive their final paycheck within a specific timeframe. Employers may not make any deductions to an employee’s final paycheck unless the court permits specific deductions. Additionally, the Texas court does not allow employers to withhold an employee’s final paycheck.
Timing of Final Paychecks in Texas
In Texas, employers must provide employees with a final paycheck. The Texas Payday Law regulates the timing and all other legalities of final paychecks in Texas. Employers must give final paychecks to all employees separating from employment, whether an employer resigns or is fired. However, the Texas Payday Law has different requirements for the timing of an employee’s final paycheck depending on how they leave their workplace.
Related: Texas Employment Law FAQs
If an employer fires, discharges, or otherwise terminates an employee, Texas law requires the employee to receive a final paycheck within six days of discharge. If an employee voluntarily separates from their employment, their final paycheck is due on the next regular payday. If an employer and employee mutually separate, their final paycheck should follow the timing of voluntary separation.
Deductions from Final Paychecks in Texas
Under the Texas Payday Law, employers may not make deductions from an employee’s final paycheck. However, there are some circumstances where the Texas court may allow an employer to make deductions from an employee’s final paycheck.
An employer may only make deductions from an employee’s final paycheck if:
- A court of competent jurisdiction orders deductions, such as in cases of child support
- A state or federal law authorizes deductions, such as IRS withholding
- The employee authorizes them to make deductions in writing with a lawful purpose
Withholding a Final Paycheck in Texas
The Texas court does not allow employers to withhold an employee’s final paycheck past its deadline. If an employer knows what the pay should be, they must deliver an employee’s final paycheck before it is due.
Related: Texas Minimum Wage Laws: Explained
If an employee fails to return to company property, an employee may make a wage deduction from the final paycheck or withhold a property return security deposit. If an employee fails to sign timesheets or violates other rules, employers may create a wage agreement. Wage agreements may provide for payment of a lower wage during the final pay period if an employee does not satisfy certain conditions the agreement outlines.
FAQs About Texas Final Paycheck Laws
Are final paychecks for employees who quit or get fired in Texas?
The Texas Payday Law requires final paychecks for all employees who are separate from their employers. Employees may receive final paychecks whether their separation is voluntary, involuntary, or mutual. However, the timing and other specifics of an employee’s final paycheck may differ depending on how they leave the company.
Do final paychecks include commissions and bonuses in Texas?
An employee’s final paycheck should include all of their commissions and bonuses. Additionally, an employee should receive any commissions and bonuses at the same deadline as their wages in a final paycheck. Under Texas law, commission pay agreements are enforceable whether they are in writing or oral.
What do I do if my employer withholds my final paycheck in Texas?
An employee who does not receive some or all of their wages in their final paycheck can submit a wage claim with the Texas Workforce Commission, TWC, no later than 180 days after the deadline of their final paycheck. An experienced employment law attorney from Her Lawyer can provide you with a free consultation to explore your legal options for any missing wages in Texas.
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If you or a loved one would like to learn more about Texas Final Paycheck Laws, get your free consultation with one of our Employment Attorneys in Texas today!