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3 Texas payday laws all companies should know

On Behalf of | Apr 17, 2023 | Business Litigation

Employers in Texas must ensure that they pay their employees in accordance with state laws and federal laws. This can be a complex process, but making sure employees are paid properly can help to keep employee morale up. It can also keep the company out of legal trouble.

There are a few things that employers must remember when they’re dealing with employee pay. Complying with these points at all times minimizes the risk of employees making wage and hour claims against an employer.

1. Pay dates

Employers have to let employees know when they’ll be paid. Notices must be conspicuous. If they don’t alert employees to alternative paydays, employees must be paid on the 1st and 15th of the month. Employees in Texas must be paid at least twice per month unless they’re exempt from overtime provisions stated in the Fair Labor Standards Act. Exempt employees can be paid once per month.

2. Final payday

The timeframe for when a worker’s final payday is due depends on the reason the employee isn’t with the company any longer. If an employee quits, they must get their pay by their next regular payday. If they’re terminated or laid off, they must receive their pay within six days of being let go. The final paycheck can be made via check, cash or electronically. Mailed paychecks must be sent via registered mail.

3. Deductions are limited

There are very limited times when employers can take deductions out of an employee’s paychecks. These include certain authorizations from the employee if the authorization is made in writing. Court-ordered deductions are also possible. Employees who are subjected to wage withholding won’t get severance pay, bonuses, pay in lieu of vacation time or commission.

Compliance with all applicable employment laws should minimize the chance of your company facing wage and hour claims. Having someone on your side to help address these claims is important because a swift response might prevent more serious issues from occurring. It’s up to an employer to institute a policy that prevents the company from being subjected to legal claims.