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Texas Payday Law Explained: What It Covers (And What It Doesn't)

The Texas Payday Law (TPL) requires employers to pay employees on time and prohibits certain paycheck deductions. However, it does NOT cover overtime pay, minimum wage rates, or meal breaks. For those protections, Texas workers rely on federal law.

The Texas Payday Law is narrower than most people think. It focuses on when and how you get paid, not how much. If you’re dealing with unpaid overtime or wages below minimum wage, you’ll need to file a federal Fair Labor Standards Act (FLSA) claim instead.

Understanding what the Texas Payday Law actually protects helps you choose the right path to recover unpaid wages.

What Is the Texas Payday Law?

The Texas Payday Law is a state statute that establishes payment requirements for employers. It’s codified in the Texas Labor Code, Chapter 61.

The TPL requires:

  • Regular, designated paydays
  • Timely payment of final paychecks
  • Written notice of pay deductions
  • Detailed paystubs
  • Prohibitions on certain paycheck deductions

The TPL does NOT cover:

  • Overtime requirements (federal FLSA handles this)
  • Minimum wage rates (again, federal law)
  • Meal or rest breaks (Texas requires none)
  • Sick leave or vacation pay (unless company policy promises it)

Think of the Texas Payday Law as the “payment timing and deduction” law, not a comprehensive wage protection statute.

Payment Frequency Requirements

Texas law requires employers to pay employees on regular, designated paydays. How often depends on your classification:

Non-exempt employees (hourly workers entitled to overtime):

  • Must be paid at least twice per month
  • Common schedules: bi-weekly (every two weeks) or semi-monthly (1st and 15th)

Exempt employees (salaried employees not entitled to overtime):

  • Must be paid at least once per month
  • Common schedule: monthly on a specific date

Example: A retail store pays hourly employees every other Friday. This meets TPL requirements because it’s at least twice monthly. The store pays salaried managers once a month on the last day. This also meets requirements.

Designated Payday Rule

Employers must post or notify employees of:

  • Regular payday schedule
  • Any changes to the schedule

Paydays must be reasonably close to when work was performed. You can’t be paid just once a year for an entire year’s work, even if you’re exempt.

Final Paycheck Requirements

When your employment ends—whether you quit, get fired, or are laid off—your final paycheck follows specific rules under Texas Payday Law.

Timing: Next Regular Payday

Your final paycheck is due on the next regularly scheduled payday, regardless of how employment ended.

This applies whether:

  • You quit voluntarily
  • You were fired for cause
  • You were laid off
  • You gave two weeks’ notice or left immediately

Example: You work at a restaurant paid bi-weekly on Fridays. You quit on Monday, March 3rd. The next regular payday is Friday, March 14th. Your final check is due March 14th, not immediately.

No Immediate Payment Required

Unlike California (which requires immediate payment upon termination in many cases), Texas gives employers until the next regular payday. This can mean waiting up to a month if you’re paid monthly.

What Must Be Included

Your final paycheck must include:

  • All wages for hours worked through your last day
  • Accrued vacation pay if company policy promises it
  • Commissions earned (if due under your agreement)
  • Bonuses earned and due

Employers do NOT have to pay:

  • Unearned vacation or PTO (unless policy says otherwise)
  • Severance pay (unless contractually required)
  • Future commissions not yet earned

What Happens If Employer Misses the Deadline

If your employer doesn’t pay your final check by the next regular payday, you can file a claim with the Texas Workforce Commission (TWC).

You can recover:

  • The unpaid wages owed
  • Potentially attorney fees if you file a lawsuit

You cannot recover:

  • Penalties for late payment (Texas has no “waiting time penalties” like California)
  • Liquidated damages (double damages) under TPL alone

This makes timely payment important, but the consequences for employer violations are less severe than in other states.

Paystub Requirements

Texas Payday Law requires employers to provide itemized paystubs with each paycheck. These can be paper or electronic.

Required information on paystubs:

  • Pay period start and end dates
  • Employee name and identifying information
  • Employer name and address
  • Rate of pay (hourly rate or salary amount)
  • Total hours worked (for non-exempt employees)
  • Gross wages earned
  • All deductions (itemized)
  • Net pay amount

Example paystub breakdown:

Pay Period: Feb 1-15, 2025
Employee: Jane Smith
Hours Worked: 85 hours
Rate: $15/hour

Gross Pay: $1,275.00
- Federal tax: $153.00
- Social Security: $79.05
- Medicare: $18.49
- Health Insurance: $50.00
Net Pay: $974.46

Why Paystubs Matter

Detailed paystubs help you:

  • Verify you were paid correctly
  • Spot unpaid overtime
  • Identify illegal deductions
  • Calculate what you’re owed if there’s a dispute
  • Provide evidence in wage claims

Keep all your paystubs. If you suspect you’re not being paid correctly, paystubs are your primary evidence.

Illegal Paycheck Deductions

The Texas Payday Law prohibits certain deductions from your paycheck unless you’ve given written authorization.

Deductions That Require Written Consent

Employers cannot deduct for the following without your signed written agreement:

1. Cash Register Shortages

  • Only allowed if you’re the sole person with access to the register
  • If multiple employees use the same register, deduction is illegal without written authorization

Example: Your restaurant register is short $75 at the end of your shift. Three servers used it throughout the day. The manager cannot automatically deduct $75 from your paycheck. You must have signed a written agreement allowing such deductions.

2. Breakage or Damage to Property

  • Deductions for broken equipment or damaged company property are illegal without authorization
  • Exception: If you intentionally destroyed property or showed gross negligence

Example: You accidentally drop a tray of dishes worth $200. Your employer cannot deduct $200 from your paycheck unless you previously signed an agreement allowing this.

3. Loss of Company Property

  • Lost tools, uniforms, or equipment
  • Must have written agreement for employer to deduct

4. Uniforms or Required Equipment

  • If the employer requires specific uniforms or tools, deducting their cost without authorization is illegal
  • Even with authorization, deductions cannot bring your pay below minimum wage

Example: Your employer requires a $50 uniform and deducts it from your first paycheck. If you earn minimum wage ($7.25/hour) and work 40 hours, your gross is $290. A $50 deduction brings you to $240, which is below minimum wage for 40 hours. This is illegal.

Deductions Employers CAN Make Without Consent

Some deductions are required by law or court order:

Lawful deductions without authorization:

  • Federal income tax withholding
  • Social Security and Medicare (FICA)
  • State-ordered child support
  • Court-ordered wage garnishments
  • Authorized benefits you’ve signed up for (health insurance, 401k)

Employers can also deduct:

  • Overpayments from previous paychecks (if properly documented)
  • Advance draws on wages (if you agreed in writing)

What to Do If You See Illegal Deductions

Step 1: Review your paystub carefully

  • Identify the deduction
  • Calculate how much was taken
  • Check if you signed any agreements

Step 2: Ask your employer for an explanation

  • Request documentation in writing
  • Ask to see any authorization you allegedly signed
  • Put your objection in writing via email

Step 3: File a complaint if employer refuses to fix it

  • Contact Texas Workforce Commission (TWC)
  • File within 180 days of the illegal deduction
  • Provide paystubs showing the deductions

What Texas Payday Law Does NOT Cover

It’s critical to understand the limits of TPL. Many wage violations fall under federal law instead.

Overtime Pay

Texas Payday Law does NOT require overtime pay. All overtime protections come from the federal Fair Labor Standards Act (FLSA).

Federal FLSA requires:

  • 1.5x regular rate for hours over 40 per week
  • Applies to non-exempt employees
  • Weekly calculation (not daily)

If your employer isn’t paying overtime, you need to file a federal FLSA complaint with the U.S. Department of Labor, not a Texas Payday Law claim with TWC.

Learn more: Can Employer Not Pay Overtime Texas

Minimum Wage Violations

Texas Payday Law does NOT set minimum wage rates. Texas follows the federal minimum of $7.25/hour.

Minimum wage violations are handled by:

  • U.S. Department of Labor (federal claims)
  • Private FLSA lawsuits

Learn more: Texas Minimum Wage vs Federal

Meal Breaks and Rest Periods

Texas Payday Law does NOT require meal breaks or rest breaks. Texas employers can legally require you to work an 8-hour shift with no break at all.

Federal law requires:

  • Short breaks (under 20 minutes) must be paid if provided
  • Meal breaks (30+ minutes) can be unpaid if you’re completely relieved of duties

Vacation or Sick Leave

Texas Payday Law does NOT require paid vacation or sick time. Employers can choose whether to offer these benefits.

However, if your employer promises vacation pay in a written policy:

  • You must be paid accrued, unused vacation when you leave (if policy says so)
  • Employers cannot take away already-earned vacation

Some employer policies say “use it or lose it” (vacation doesn’t carry over). This is legal in Texas as long as you had reasonable opportunity to use it.

Filing a Texas Payday Law Claim

If your employer violates the Texas Payday Law, you can file a complaint with the Texas Workforce Commission.

When to Use TPL (Not Federal FLSA)

File a Texas Payday Law claim for:

  • Late payment of final paycheck
  • Missing regular paychecks (payment timing issues)
  • Illegal deductions from paycheck
  • Failure to provide required paystubs

Don’t use TPL for:

  • Unpaid overtime (use federal FLSA)
  • Minimum wage violations (use federal FLSA)
  • Breaks or meal periods (Texas doesn’t require them)

Filing Deadline: 180 Days

Critical deadline: You must file a TPL claim with TWC within 180 days of when wages were due.

This is extremely short—about six months. Miss this deadline and you lose your right to file a state claim (though you may still have federal options).

Example: Your final paycheck was due March 15, 2025. You have until approximately September 11, 2025 to file a TWC claim. After that, TPL claims are time-barred.

Compare to federal FLSA:

  • Federal claims have 2-3 year deadlines
  • Much longer window to file

Learn more: Statute of Limitations Unpaid Wages Texas

How to File a TWC Claim

File online, by phone, or by mail:

Online:

  • Visit twc.texas.gov
  • Navigate to “Wage Claim” section
  • Complete the online form
  • Upload supporting documents (paystubs, employment records)

Phone:

  • Call TWC: 1-800-832-9243
  • Request to file a wage claim
  • Provide your information and employer details

Mail:

  • Download claim form from TWC website
  • Complete and sign
  • Mail to address listed on form

What Information You’ll Need

Your information:

  • Full name, address, phone, email
  • Social Security number
  • Dates of employment

Employer information:

  • Legal business name
  • Business address
  • Owner or manager name
  • Phone number

Claim details:

  • What wages are owed
  • How much is owed
  • When wages were due
  • Description of the violation
  • Supporting evidence (paystubs, timesheets, written policies)

TWC Investigation Process

After you file:

  1. TWC reviews your claim (2-4 weeks)

    • Determines if claim falls under Texas Payday Law
    • Requests additional information if needed

  2. Employer is notified (within 30 days)

    • Employer must respond to your claim
    • Employer can agree to pay or dispute

  3. Investigation (varies, typically 3-6 months)

    • TWC may request documents from both sides
    • TWC may conduct interviews

  4. Decision

    • If TWC finds in your favor: Employer is ordered to pay
    • If employer refuses: You can pursue a private lawsuit
    • If TWC dismisses: Claim doesn’t fall under TPL or evidence is insufficient

Limitations of TWC Claims

TWC cannot:

  • Handle overtime or minimum wage claims (federal only)
  • Award liquidated damages (double damages)
  • Force employers to pay penalties beyond owed wages

This is why many workers choose federal FLSA claims when possible—stronger remedies and longer filing deadlines.

Texas Payday Law vs. Federal FLSA: Which Is Stronger?

For most wage violations, federal law offers better protection.

Feature Texas Payday Law Federal FLSA
Covers overtime No Yes (1.5x over 40 hrs/week)
Covers minimum wage No Yes ($7.25/hour)
Filing deadline 180 days 2-3 years
Liquidated damages No Yes (double damages)
Payment timing Yes (final checks, paydays) Limited
Illegal deductions Yes Limited
Attorney fees Only in private lawsuits Yes, employer pays

When to use Texas Payday Law:

  • Simple payment timing disputes
  • Final paycheck not paid
  • Unauthorized deductions

When to use federal FLSA:

  • Unpaid overtime
  • Minimum wage violations
  • Misclassification (exempt vs. non-exempt)
  • More than 180 days have passed

You can file both if you have violations under both laws. For example:

  • Unpaid overtime (FLSA with U.S. DOL)
  • Illegal paycheck deductions (TPL with TWC)

Retaliation Protections

It’s illegal for employers to retaliate against you for:

  • Filing a wage claim with TWC
  • Asking about pay or deductions
  • Complaining about late paychecks
  • Reporting Texas Payday Law violations

Retaliation includes:

  • Firing you
  • Demoting you
  • Cutting your hours
  • Giving bad shifts or assignments
  • Creating a hostile work environment

Example: You file a TWC claim about an illegal $200 deduction. The next week, your manager cuts your hours from 40 to 15 per week. This is likely illegal retaliation.

If you’re retaliated against:

  • Document everything (emails, schedule changes, disciplinary actions)
  • Report retaliation to TWC
  • You have a separate claim for retaliation damages
  • Remedies can include reinstatement, back pay, and compensatory damages

Frequently Asked Questions

Does Texas Payday Law require my employer to pay me overtime?

No. Texas Payday Law does not cover overtime. Overtime protections come from the federal Fair Labor Standards Act, which requires 1.5x pay for hours over 40 per week. If you’re not getting overtime, file a complaint with the U.S. Department of Labor, not TWC.

How long do I have to file a Texas Payday Law claim?

You have 180 days from when wages were due to file a claim with the Texas Workforce Commission. This deadline is very short. If you miss it, you may lose your right to recover wages under state law (though federal options may still be available).

Can my employer deduct cash register shortages from my paycheck?

Only if you’re the only person with access to the register, or if you signed a written agreement authorizing such deductions. If multiple employees use the register, deductions without written authorization violate the Texas Payday Law.

What if my employer doesn’t pay my final paycheck on time?

File a complaint with the Texas Workforce Commission. Your final paycheck is due on the next regular payday after your employment ends. If your employer misses this deadline, TWC can order payment. Unlike some states, Texas doesn’t impose automatic penalties for late final paychecks.

Does my employer have to pay me for unused vacation time when I quit?

Only if your employer’s written policy promises payment of accrued vacation. Texas Payday Law doesn’t require vacation pay, but employers must follow their own written policies. If your employee handbook says unused vacation is paid out upon separation, the employer must do so.

Can I sue my employer directly for Texas Payday Law violations?

Yes. If TWC doesn’t resolve your claim or if you prefer to skip the agency process, you can file a private lawsuit under the Texas Payday Law. You may be able to recover attorney fees if you win. Many workers consult employment attorneys for claims involving significant amounts.

Related Topics

Take Action

If your employer violated the Texas Payday Law, don’t wait. You have only 180 days to file a claim with TWC—that’s about six months from when wages were due.

File a wage claim:

  • Texas Workforce Commission: twc.texas.gov or call 1-800-832-9243
  • For overtime/minimum wage: File with U.S. Department of Labor at dol.gov/agencies/whd or call 1-866-4-USWAGE

Document everything, save your paystubs, and act quickly to protect your rights.

Legal Disclaimer

This article provides general information about the Texas Payday Law and is not legal advice. Wage and hour law involves complex federal and state rules that depend on your specific situation. If you have unpaid wages or questions about your rights, consult an employment attorney or contact the Texas Workforce Commission or U.S. Department of Labor. Filing deadlines are strict—don’t delay seeking help.