Texas Payday Law - What Is It?

In Texas, anyone who is compensated for services of any kind, except close relatives and independent contractors, is considered an employee. Any employee in Texas is covered by the Texas Payday Law, regardless of the size or organization of the company that employs or hires them. Despite the commonality and widespread coverage of the Texas Payday Law, not many people, whether they be employees or employers, can tell you much about it.

Our Houston employment law attorneys at Moore & Associates have compiled a useful list of frequently asked questions about the Texas Payday Law. Review it if you are concerned about payday regulations and policies at your workplace. If you need our help right away about an employment law case, you can contact us online or call 713.581.9001 for a free case evaluation.

Texas Payday Law FAQ

  1. What does the Texas Payday Law do?
    In simplest terms, the Texas Payday Law requires all employers to pay their employees on full and on time, based on regularly scheduled paydays. Withholding pay or promising it at a later date are common violations of the Texas Payday Law.
  2. What types of pay are considered in the Texas Payday Law?
    The three types of pay covered by the Texas Payday Law include regular compensation for services rendered, commissions or bonuses granted through achievements or successes, and circumstantial “fringe benefits,” which can vary between workplaces due to employment contract differences.
  3. How can my paycheck be delivered to me?
    Wages, income, and earnings can be given to an employee in cash, a check that can be exchanged for currency, or an electronic fund transfer, as in straight into a bank account. Other forms of “wages” are not protected and can be challenged by the Texas Payday Law.
  4. I couldn’t deposit my check right away – can it expire?
    The Texas Payday Law guarantees that an employee has at least 180 days to deposit a check issues for wages they earned for working.
  5. What happens to my paycheck if I lose my job?
    An employee that is involuntarily removed from the company, such as through firing, must receive their final pay within six days of their removal. An employee that voluntarily leaves a company will still receive their pay on the next scheduled payday.
  6. How often do I need to receive a payday?
    Employees who do not qualify for overtime under the Fair Labor Standards Act can legally be paid only once every four weeks. Any other employee, salaried or hourly, requires at least one payday every two weeks. Defaulted paydays, if not set by an employer, are the 1st and 15th of each month.
  7. Can an employer be penalized for not complying to Texas Payday Law rules?
    Yes, the Texas Workforce Commission (TWC) can use an administrative penalty against the employee equal to $1,000 or the wages denied or delayed, whichever is less. However, if an employee makes a falsified Texas Payday Law claim in an attempt to damage their employer’s reputation, they can also be penalized using the same standards.