Wage and Hour: The Pocket Guide By JIKKU JOHN, Legal Counsel to Chairman Esparza, Texas Workforce Commission TEXAS PAYDAY LAW In a nutshell, the Texas Payday Law (TPL) requires an employer to pay its employees in full and on time on regularly scheduled paydays. “In full” means the full pay that is due to the employee under the pay agreement that was in effect when the work was actually performed. “On time” means just that — employees are paid on the scheduled paydays. If the payday falls on a day when the company is not normally open for business, it is extended to the next business day. Per the TPL, non-exempt employees must be paid at least twice per month on regularly scheduled paydays, and exempt employees at least once per month. “Exempt” generally refers to whether the employee meets the requirements for an overtime exemption as a salaried executive, administrative or professional employee under the Fair Labor Standards Act (FLSA), including a minimum weekly salary of at least $684. DEDUCTIONS Three categories of deductions from pay are allowed under the Texas Payday Law: 1. Deductions ordered by a court; 2. Deductions required or specifically authorized under state or federal law; and 3. Deductions made for a lawful purpose and authorized by the employee in writing. *Additional information on deductions and minimum wage compliance can be found at efte.twc.texas.gov/allowable_deductions.html. DEDUCTIONS REQUIRED OR SPECIFICALLY AUTHORIZED BY LAW LAWFUL DEDUCTIONS (WRITTEN AUTHORIZATION NEEDED) 1. Court-ordered child support/alimony 2. Guaranteed student loan wage attachment 3. IRS tax levy 4. Withholding tax 5. FICA tax 6. Any garnishments mandated by a federal court (as in bankruptcy cases) 1. Meals, lodging and other facilities 2. Voluntary wage assignment 3. Loans 4. Wage or salary advances 5. Vacation pay advances 6. Wage overpayments 7. Uniform and uniform cleaning costs 8. Union dues 9. Misappropriated cash 10. Payments toward a property return security deposit 11. Any other deduction for a lawful purpose DEALERS’ CHOICE 28
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