FRINGE BENEFITS Paid leave, paid holidays, and severance pay promised in a written policy or agreement are enforceable parts of the wage agreement under the TPL and are enforced according to the terms of such policies. FINAL PAY The TPL regulates the timing of the final paycheck. The deadline for the final paycheck depends on whether the work separation was voluntary or involuntary. In the event of a discharge or a layoff, the final pay is due by the sixth calendar day following the effective date of the work separation. In the case of a resignation, the final pay is due by the next regularly scheduled payday. Commissions, bonuses and severance pay are payable in accordance with their respective plans or agreements. DELIVERY OF WAGES Employers have significant flexibility in delivering wages, with options including in-person delivery, direct deposit or payment to an authorized third party. However, certain methods require strict compliance; for instance, payment of wages by EFT (electronic funds transfer, or direct deposit) involves prior arrangements and paperwork with a bank and is subject to federal and state rules. Payment with a payroll or debit card requires 60 days’ advance written notice, and the employer must provide the employee with information on usage fees, opting out of the payroll card program and available alternative ways of Every Choice Matters – Choose Federated® DriveSAFESM Federated DriveSAFESM Telematics can help your employees improve their daily driving habits. This combination of mobile app, in-vehicle tag, and online portal allows you to measure, rank, and provide feedback on employee driving behaviors so you can help them become safer drivers. Scan to learn more about Federated DriveSAFESM Telematics and how you can help your employee drivers stay safe behind the wheel. Federated Mutual Insurance Company and its subsidiaries* federatedinsurance.com | *Not licensed in all states. 25.08 Ed. 1/25 © 2025 Federated Mutual Insurance Company The content of this publication is for general information purposes only and should not be considered legal advice or an offer of insurance. Coverage will be determined solely by the terms of your policy, if approved for issue. Consult with a qualified professional to discuss questions specific to your circumstances. Helping Your Employees Stay Safe Behind The Wheel receiving pay. If the employee receives part or all of the wages “in kind” (in a form other than cash, a negotiable money order or a check), the employee must have authorized it in writing in advance of the payment. Although providing written statements of earnings — commonly known as pay stubs — is not a strict requirement for employees covered under the FLSA (see Sections 62.003 and 62.151 of the Texas Minimum Wage Act), it remains a critical best practice for employers. Issuing these statements helps satisfy federal recordkeeping obligations and fosters transparency by showing employees exactly how their pay and deductions were calculated, which helps prevent disputes. These records may be delivered in either physical or electronic formats. If sent via email, consider using password protection and/or encryption, since privacy and identity theft issues are becoming increasingly critical. If sent via regular mail, Texas law requires employers to give employees an annual reminder that they have the right to request that the company not print their Social Security number on any documents sent by mail (see Section 501.001(b) of the Texas Business & Commerce Code). Finally, it is essential that wages never be paid in cash without obtaining a signed, dated receipt from the employee, as a lack of documentation can leave an employer vulnerable to claims of non-payment. For questions about this issue or other employment-related matters, employers can call the employer hotline at (800) 832-9394 or email employerinfo@twc.texas.gov. This article originally appeared in the October 2026 issue of Texas Business Today and has been edited for length and clarity. 29 DEALERS’ CHOICE
RkJQdWJsaXNoZXIy MTg3NDExNQ==