Texas Payday Law

The time and manner of the payment of wages is governed by the Texas Payment of Wages Act also known as the "Texas Payday Law." This statute is designed to protect employees from having wages unlawfully withheld by their employers. It does this by establishing an administrative system which vests the Texas Employment Commission (the Texas Workforce Commission) with the authority to govern the payment of wages by employers. The Texas Payday Law applies only to employer-employee relationships and does not extend to relationships with independent contractors. In addition, it applies to private employers only and is not applicable to fedtate subdivisions. Political state subdivisions include cities, counties, school districts, municipal utility districts, water control and improvement districts, and conservation and reclamation districts.

The definition of wages includes every conceivable form of compensation for services rendered by an employee. It also includes pay for vacation, holidays, sick leave, parental leave, and severance. Reimbursement for expenses paid to employees, however, is not considered wages.

There are several designations to outline the time and manner of payment of wages:

  • An employee who is classified as an executive, administrator, or professional under the FLSA guidelines must be paid at least once a month.
  • All other employees must be paid at least twice a month.
  • The number of days within each pay period must be as equal as possible.
  • The employer is to schedule and designate the dates for the pay periods and notify the employees in a public manner.
  • Payment is to include vacation pay and sick pay.
  • An employee who quits his or her job must be paid in full on or before the regularly scheduled payday.
  • An employee who is terminated is to be paid within six days—not to encompass only workdays—after being released.
  • Wages that are paid as commission or bonus are to be paid in a timely manner.
  • Employers are to pay employees by cash, a check which is negotiable on demand, or by electronic transfer of funds.
  • Employers may deliver payment of wages at work, through direct deposit, or by registered mail.

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