In Texas, the employment and labor laws are strict on employers regarding paychecks. The Texas Labor Code governs labor standards in Texas.
The labor code is a body of laws that includes standards governing many issues, including:
- Wages;
- Fair work practices;
- Discrimination;
- Wage payments; and
- Workers’ compensation.
The Fair Labor Standards Act and the Texas Payday Law are other examples of laws that regulate wage issues in Texas. To enforce these laws, the Texas Payday Law provides a process for employees to file claims.
Wage payment laws are the laws that govern how employers are required to pay their employees. If an employer fails to follow these wage payment laws, it may lead to a wage and hour lawsuit.
In Texas, wage payment laws have requirements that include:
- Frequency: Employers must pay employees at least twice a month or semi-monthly;
- This only applies to employees who are not exempt from overtime pay;
- Paydays: The employer must also designate the pay dates for the employees;
- Typically, these dates are the 1st and the 15th of each month;
- Failure to pay: The employer may not pay an employee on the designated day. If not, they must pay the employee on another regular business day, according to the consent of the employee; and
- Method: Payments may be in the form of:
- Cash;
- Check; or
- A direct deposit.
It is important to note that there may also be other requirements under Texas labor laws, including minimum wage and overtime guidelines. If an employer fails to fulfill these requirements, they may face consequences for their violations.
If an individual believes that their employer has violated their rights under the Texas paycheck laws, they should consult with a local Texas attorney to determine their available options.
When Must Paychecks Be Sent Out According to Texas Law?
In the State of Texas, employers are required to provide their employees paychecks for their hours worked at least once a month. They can deliver the paycheck in person by check or in the mail if the employee requests.
In addition, if the employee consents, their paycheck may be provided through direct deposit to the employee’s bank account on the following business day. Employers have to post notices of the pay periods in locations that are noticeable in the workplace.
If the employer does not list or name the paydays, the employer’s paydays will have to be the first and 15th of each month.
What Happens to Your Paycheck if You Are Fired or if You Quit in Texas?
In the State of Texas, when an employee is fired or terminated, they have to be paid within the following six days, either by mail or by direct deposit. If the employee quits, they can be paid along with the other employees on the next regular pay period.
Assume that the employee is not paid on the required payday for any reason, including their absence from the workplace. In that case, the employer has to pay the wages on another business day as requested by the employee. There are no state laws in Texas that govern unused vacation time and if employers are required to pay their employees any unused vacation time.
Because there is no state law governing this issue, each employer can establish its own procedures for when employees are terminated or quit. If the employer does provide vacation benefits, they have to inform employees of what happens to their accrued vacation benefits when they leave. This information can be in a written policy or in the employment contract.
It is against the law to hold a final paycheck past the deadline for reasons including the employee’s failure to return company property, failure to sign timesheets, or similar problems. If the company is aware or should have been aware of what the pay should be, it is required to deliver the final pay no later than the deadlines discussed above.
How Are Commissions and Bonuses Paid After Leaving the Company?
One common problem that arises is how commissions and bonuses are paid after an employee leaves a company. How these are paid will depend on the terms of the agreements.
A commission agreement is enforceable, whether it is oral or in writing. These agreements may also be established by showing the employer’s pattern or practice of paying commissions in a specific manner.
Good commission agreements will avoid the risk of ambiguity by clearly stating:
- How commissions are earned;
- When and under what circumstances they are paid; and
- What happens to commissions from sales in progress at the time of work separation.
Bonus agreements should also specify exactly how bonuses are earned and what happens to bonuses that are not determined or paid out until after an employee has left the company. The commission agreement or bonus agreement may provide for the payment of commissions and bonuses in any manner once an employee has separated from their employment. If so, the deadline for the payment would be based on the wording of the agreement.
Can Your Paycheck Be Garnished Under Texas Law?
If an individual owes a creditor, that creditor can go to court and obtain a decree against the individual for nonpayment and can then garnish their paycheck. For example, a creditor could attempt to collect for a personal debt, such as unpaid credit cards. If that is the case, they are required to first go to court and obtain a judgment.
There are, however, certain circumstances in which the creditor is not required to obtain a judgment first and may begin garnishing a paycheck without one, including:
Under Texas employment law, if an individual owes their employer a debt, their paycheck can be garnished. An employer can go through the court process, obtain a judgment, and garnish the employee’s wages.
Wage garnishment allows an employer to set aside some of an individual’s wages and use them to pay the outstanding debt until it is paid off. The State of Texas limits how much money employers and creditors can garnish from an employee’s paycheck to repay certain debts.
In general, an individual must have enough left to pay their living expenses after their wages are garnished.
Can You Recover a Withheld Paycheck Under Texas’s Paycheck Law?
Under the laws of Texas, there are no situations in which an employer is legally allowed to withhold a final paycheck. Employers are required to pay their employees their wages due when the pay period comes.
If an employee believes their employer has withheld their paycheck illegally, they can file a wage claim with the Texas Workforce Commission no later than 180 days after their wages are due. An employee can hire a Texas employment lawyer to assist them with recovering their paycheck.
What if a Texas Employer Has Discriminated Against Employees?
Under Texas employment laws, employers are not permitted to discriminate against employees or prospective employment candidates. For example, employers cannot withhold a paycheck based only on an employee’s:
- Age;
- Race;
- Sex;
- Gender;
- Political affiliation;
- Country of origin;
- Pregnancy status; or
- Any legally recognized medical conditions or disabilities.
In addition, employers cannot provide preferential treatment to other workers or groups of workers based on the characteristics listed above.
Where Can You Find the Right Lawyer for a Paycheck Dispute in Texas?
If you have any type of paycheck dispute with your employer in Texas, it is important to consult with a Texas employment lawyer as soon as possible. There are deadlines that have to be followed when suing your employer for paycheck issues, so it is important to act quickly.
Your attorney can advise you regarding what documentation to collect, how to properly file a complaint with the proper agencies, and how to file a lawsuit if needed. Your lawyer will represent you throughout the process and give you the best chance at obtaining the wages you are due.
