Paycheck Withholding Laws in Texas

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    Texas Labor Code

    • Under Texas law, employers must comply with the Texas Labor Code's payday deadlines. Employers must designate their paydays and post their designated paydays on a poster in the workplace. The Texas Payday Law requires employers to pay their hourly and other nonexempt employees at least once every two weeks. Employers can pay their exempt employees once per month. Exempt employees are those exempt from federal overtime laws and include professional, administrative and executive employees. Texas law requires employers to pay their terminated employees within six days of their involuntary discharge. However, employers can pay employees who voluntarily terminate employment by their next regularly scheduled payday.

    Texas Payday Law

    • The Texas Payday Law allows the Texas Workforce Commission to pursue wage claims against employers who wrongfully withhold an employee's paycheck. Employees have 180 days to file wage complaints from the date their wages were originally due. Chapter 61 of the Texas Labor Code allows employees to file wage complaints against their employers to recover their withheld paychecks. Employers have 21 days to appeal or respond to claims filed against them for wrongfully withholding an employee's paycheck. The Texas Workforce Commission can file liens against employers who refuse to comply with its wage orders.

    Failure to Pay

    • Texas law prohibits employers from withholding an employee's paycheck when an employee quits and fails to return company property unless the business obtains a court order. Employers without a court order or written employee authorization must pursue recovery of their business property by filing a lawsuit.

    Penalties

    • The Texas Workforce Commission can require employers to post bonds for failing to pay their employees by their designated pay dates. After two violations, the Texas Workforce Commission can require employers to obtain payment bonds for up to three years. Payment bonds require employers to pay their employees by their designated pay dates. Furthermore, the Texas Workforce Commission can assess monetary penalties of up to $1,000 per violation against employers who fail to pay employees in a timely manner. The commission can pursue felony charges against employers who violate the Texas Payday Law repeatedly.

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