Under the Texas Payday Law, an employer must pay a discharged employee in full within six calendar days of discharge. An employee who quits must be paid by the next regularly scheduled payday. Non-exempt employees must be paid at least twice a month and exempt employees at least once a month. Unpaid wages are pursued through the Texas Workforce Commission (TWC).
When is final pay due in Texas?
The deadline depends on who ended the relationship. TWC's Texas Guidebook for Employers states that if an employee is laid off, discharged, fired, or otherwise involuntarily separated, final pay is due within six calendar days of discharge. If the employee quits, retires or resigns, final pay is due on the next regularly scheduled payday after the effective date of resignation.
| Separation type | Final pay due |
|---|---|
| Laid off, discharged or fired | Within six calendar days of discharge |
| Quit, retired or resigned | Next regularly scheduled payday after the resignation date |
Calendar days include weekends, so plan payroll cutoffs around the separation date rather than business days.
Can an employer hold a final paycheck for unreturned property?
No. TWC says it is not legal to hold a final paycheck past the deadline for reasons such as failure to return company property, failure to sign timesheets, or similar problems. Pursue return of equipment separately, and apart from payroll taxes, court orders and deductions required or authorized by law, only deduct if the deduction is lawful and specifically authorized in writing by the employee.
On deductions, TWC states that all deductions, other than payroll taxes, court-ordered garnishments, and other deductions required by law or specifically authorized by statute, must be both lawful and specifically authorized in writing by the employee.
Does Texas require payout of accrued vacation?
Only when the employer has promised it. According to TWC, payouts of accrued leave are required under the Texas Payday Law only if the employer promised such a payment in a written policy or agreement. If no such policy exists, the company would not owe the payment. Review handbook wording carefully, because the policy text controls.
How often must Texas employers pay?
TWC guidance requires employers to pay non-exempt employees at least twice per month on regularly scheduled paydays, and exempt employees at least once per month. Paydays must be posted at the employer's office and at any outlying offices where employees normally gather.
| Employee type | Minimum payday frequency |
|---|---|
| Non-exempt | At least twice per month |
| Exempt | At least once per month |
How does a TWC wage claim work?
TWC describes the system as claim driven: nothing happens until and unless a claim is filed. A claim can be filed online, in person at a local TWC office or Workforce Solutions center, by mail, or by fax. A wage claim must be filed within 180 days of the date the wages became due, a strict statutory deadline (Texas Labor Code s. 61.051), so employees should file promptly and employers should keep that window in mind.
When a claim is filed, TWC asks employers to respond within fourteen calendar days. Follow the response date stated in the notice. TWC advises including copies of wage agreements and fringe benefit policies. An investigator then issues a preliminary wage determination order, which becomes final unless a party appeals in writing within 21 calendar days of the date it is mailed.
Employer checklist for separations
- Record whether the separation was involuntary or voluntary and calendar the matching deadline.
- Do not withhold final pay for unreturned property or unsigned timesheets.
- Apart from payroll taxes, court orders and deductions required or authorized by law, check that each deduction is lawful and specifically authorized in writing by the employee.
- Confirm what your written policy says about accrued leave payout.
- Post paydays and keep wage agreements ready in case a claim notice arrives.
FAQ
What is the Texas final paycheck deadline after a firing?
Final pay is due within six calendar days of discharge, according to TWC's Texas Guidebook for Employers.
When must a resigning employee be paid in Texas?
On the next regularly scheduled payday following the effective date of resignation.
How often must Texas employers run payroll?
Non-exempt employees must be paid at least twice per month and exempt employees at least once per month.
How long does an employer have to answer a TWC wage claim?
TWC asks employers to respond within fourteen calendar days. Follow the response date stated in the notice.
Can a Texas employer withhold pay for unreturned equipment?
No. TWC says it is not legal to hold a final paycheck past the deadline for that reason.
Payday rules turn on the facts of each separation, and a missed deadline can lead to a wage claim. OptiMaxWork AI gives you a verified answer for your own case, and the 7-day free trial starts on the pricing page. Start your 7-day free trial
Disclaimer: This article is general information, not legal advice. Sources: Texas Workforce Commission, Texas Guidebook for Employers, and Texas Labor Code Chapter 61:
- https://efte.twc.texas.gov/final_pay.html
- https://efte.twc.texas.gov/frequency_of_pay.html
- https://efte.twc.texas.gov/wage_claims_in_texas.html
- https://efte.twc.texas.gov/accrued_leave_payouts.html
- https://efte.twc.texas.gov/deduction_problems_under_tpl.html
- Texas Labor Code, Chapter 61 (Payment of Wages): https://statutes.capitol.texas.gov/Docs/LA/htm/LA.61.htm