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Texas payday law final paycheck

texas payday law final paycheck

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Involuntary Separation

The Texas Payday Law requires that employers pay employees their last paycheck within six calendar days after an employee's discharge. This six-day requirement only applies to involuntary separation. If an employer fires or lays off the employee, or the employee resigns by "mutual agreement," the employer must meet the six-day requirement.

Voluntary Separation

In situations where the employee leaves voluntarily, the employer has more flexibility in issuing the final paycheck under Texas law. Voluntary separation means situations where the employee could have kept working by choice. The most common example of voluntary separation is when an employee quits. Other examples include walking off the job site or abandoning the job, or retiring. In those cases, the employer can issue that employee's final paycheck on the next regular payday.


The Texas Payday Law does not require that employers pay severance, which is extra money outside an employee's wages that some employers

agree to pay in certain separation situations. Severance pay usually allows a terminated employee some breathing while seeking new gainful employment. However, if an employee has a written employment contract that provides for severance, the employer must honor that agreement. Texas labor laws distinguish severance pay from the final paycheck and do not impose deadlines for severance.


Employees who believe their employer violated Texas law with regard to their final paycheck can file a petition with the Texas Workforce Commission, the state government agency charged with enforcing Texas labor laws. Petitioners must completely fill out the complaint form accurately and legibly, sign the complaint and have it notarized. The TWC conducts hearings on wage claims by telephone, and each party has the opportunity to present evidence. The TWC issues a written decision after the hearing. An appeal can be made no later than 21 days from the date of the decision to the special hearings division of the TWC.

Category: Payday loans

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