Texas Wage Payment Laws

Texas labor laws require employers to pay wages to each employee who is not exempt from the overtime at least twice per month (semi-monthly). If wages are paid twice a month, each pay period must consist as nearly as possible of an equal number of days. An employer must pay an employee exempt from overtime at least once per month. TX Labor Code 61.011

An employer must designate paydays. If an employer fails to designate paydays, the employer’s paydays are the first and 15th day of each month. An employer must post, in conspicuous places in the workplace, notices indicating the paydays. TX Labor Code 61.012

An employer must pay an employee who is not paid on a payday for any reason, including the employee’s absence on a payday, on another regular business day on the employee’s request. TX Labor Code 61.013

Manner of Wage Payments

An employer may pay wages to an employee by:

• cash
• check redeemable on demand at full face value without deduction or fee; or
• direct deposit
• payroll card.

An employer may pay an employee their wages by:

• delivering the wages to the employee at the employee’s regular place of employment during regular employment hours;
• delivering the wages to the employee at a time and place agreed on by the employer and employee;
• sending the wages to the employee by registered mail, to be received by the employee not later than payday;
• delivering the wages in a manner similar to a manner specified above to a person designated by the employee in writing; or
• delivering them to the employee by any reasonable means authorized by the employee in writing.

An employee may agree in writing to receive part or all of the wages in kind or in another form.
TX Labor Code 61.016; TX Labor Code 61.017

Direct Deposit

Texas labor laws allow an employer to pay an employee by direct deposit if the employer:

• notifies each affected employee in writing, at least 60 days before the date on which the direct deposit payroll system is scheduled to begin, that the employer is adopting a direct deposit payroll system; and
• obtain from the employee any information required by the financial institution in which the employee maintains the account that is necessary to implement the electronic funds transfer.

Payroll Card

Texas labor laws allow an employer to pay an employee by payroll card if the employer:

• pays wages through a payroll card account plan that is linked to a federally insured financial institution and uses electronic funds transfer to deposit wages in the employee’s payroll card account
• not later than the 60th day before the date of the first electronic funds transfer to the payroll card account of an employee or, for an employee hired after the date the employer adopts the plan, not later than the employee’s first day of work:
  • notify the employee in writing regarding the employer’s adoption of a payroll card account plan; and
  • provide to the employee:
    • a complete list of all fees associated with the employee’s payroll card account in English, or, if the employer offers a payroll card account to an employee in a language other than English, in that other language; and
    • a form the employee may use to request an alternate form of payment if the employee elects to opt out of the payroll card account plan; and

    If an employee requests to be paid wage through an alternate form other than payroll card, the employer must pay the employee’s wages in the alternate form as soon as practicable, but not later than the first payday occurring after the 30th day after the employee requests the alternate form of payment.

    Payment upon Separation from Employment

    Employees who are fired, discharged, terminated, or laid off

    An employer must pay an employee who is discharged or laid off all wages due within six (6) days after the date the employee is discharged. TX Labor Code 61.014

    Employees who quits, is laid off, or resigns due to a labor dispute (strike)

    An employer must pay an employee who quits or leaves employment for any reason other than discharge all wages due not later than the next regularly scheduled payday. TX Labor Code 61.014

    Wages in Dispute

    Texas does not have any laws requiring an employer to pay an employee wages conceded to be due when involved in a wage dispute with the employee.

    Deductions from Wages

    An employer may not withhold or divert any part of an employee’s wages unless
    the employer:

    • is ordered to do so by a court of competent jurisdiction;
    • is authorized to do so by state or federal law; or
    • has written authorization from the employee to deduct part of the wages for a lawful purpose.

    An employer may withhold the following items from wages only if the employee has consented to it in writing:

    • cash shortages
    • breakage, damage, or loss of the employer’s property
    • required uniforms
    • required tools or other items necessary for employment
    • loans (TX Admin Code 821.27)

    An employee’s written authorization for deductions must be specific as to the purpose for which the employee has accepted the responsibility or liability. Written authorizations must be:

    • sufficient to give the employee a reasonable expectation of the amount to be withheld from pay; and
    • a clear indication that the deduction is to be withheld from wages.

    If an employer uses a handbook, policy manual or other similar document instead of a separate writing, the employee’s signed acknowledgment of receipt of company policies can be authorization to withhold wages if the acknowledgment meets the consent requirements listed above. The signed acknowledgment of receipt must also include language that states that the employee agrees to abide by or be bound to the authorization for deduction.

    Uniforms, Tools, and Other Equipment Necessary for Employment

    Texas does not have any laws prohibiting an employer from requiring an employee to purchase a uniform, tools, or other items necessary for employment.

    Pre-hire Medical, Physical, or Drug Tests

    Texas does not have any laws prohibiting an employer from requiring an applicant or employee to pay the cost of a medical examination or the cost of furnishing any records required by the employer as a condition of employment.

    Notice of Wage Reduction

    Texas does not have any laws addressing when or how an employer may reduce an employee’s wages or whether an employer must provide employees notice prior to instituting a wage reduction.

    Statement of Wages (Pay Stub)

    At the end of each pay period, an employer must give each employee a written earnings statement covering the pay period. The statement must be signed by the employer and must show:

    • the name of the employee;
    • the rate of pay;
    • the total amount of pay earned by the employee during the pay period;
    • any deduction made from the employee’s pay and the purpose of the deduction;
    • the amount of pay after all deductions are made; and
    • the total number of:
      • hours worked by the employee if the employee’s pay is computed by the hour; or
      • units produced by the employee during the pay period if the employee’s pay is computed on a piece rate

      Record Keeping Requirements

      Texas does not have any laws requiring an employer to keep any employment-related documents.

      Federal law requires every employer covered by the Fair Labor Standards Act (FLSA) to keep certain records for each covered, nonexempt worker, for at least three (3) years. For more information, visit FLSA.

      Notice Requirements

      An employer must post, in conspicuous places in the workplace, notices indicating the paydays. Texas Labor Code 61.012