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What Is the Texas Payday Law?

By Dan Atkerson on May 25, 2015

When the Texas Workforce Commission investigates wage claims, it does so under Chapter 61 of the Texas Labor Code, known as the Texas Payday Law.

This law affects all Texas businesses, regardless of size, excluding public employers like the federal government as well as independent contractors. It requires that employees be paid for all “compensable time” worked. Compensable time is typically defined as any time where the employee is required to be present on the employer’s premises.

The types of payments covered under the Texas Payday Law are as follows:

  • Compensation for services rendered regardless of how they are computed
  • Commissions and bonuses according to the agreement between the parties
  • Fringe benefits due under a written contract with or policy of the employer

If I Lose My Job, What Pay Am I Entitled To?

Depending on the circumstances of your departure from an employment position, employers are required to grant you your fair wages at designated times. Employees who leave by any other means than termination must be paid on the next payday, as declared by the employer; fired employees must be paid before the sixth day after the date of termination.

If you believe that you have had your fair wages withheld in violation of the Texas Payday Law, you should speak with an employment law attorney about filing a claim against your employer. You must submit your claim to the TWC within 180 days of your wages becoming due for payment, so you must act quickly.

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