FAQ Category
Payroll, Deductions & Pay FAQs
Paycheck deductions, compensable time, on-call pay, and the payroll practices that generate the most wage claims in Texas.
Last updated: July 03, 2026 • 21 answers in this category
- Can a Texas employer change an employee pay rate without notice?
- Can a Texas employer collect missed benefit deductions from an employee paycheck?
- Can a Texas employer deduct cash shortages or damages from final pay?
- Can a Texas employer deduct uniforms or equipment from an employee paycheck?
- Do Texas employers have to pay employees for mandatory training time?
- Does a Texas employer have to pay an employee who worked without permission?
- Does a Texas employer have to pay an employee who works through lunch?
- Does a Texas employer have to pay unauthorized overtime?
- How should a Texas employer set salary bands and use compa-ratio?
- What happens when nonprofit staff behavior damages public trust?
- What HR problems arise from mandatory overtime in police, fire, EMS, dispatch, or utilities?
- What HR problems happen when public works or utility employees are on call?
- What HR risks arise when a grant does not cover overtime?
- What HR risks arise when payroll and benefits records do not match?
- What payroll mistakes create the most HR risk for Texas small businesses?
- What should a Texas employer do after underpaying an employee by mistake?
- What should a Texas employer do if an employee says their paycheck is short?
- What should a Texas employer do if benefit deductions were taken incorrectly?
- What should a Texas employer do if payroll deductions were wrong for months?
- When does on-call time have to be paid for Texas employees?
- When does travel time have to be paid for Texas employees?
Texas Payday Law: the rules the FLSA does not cover
Controlling authority: the Texas Payday Law (Tex. Labor Code ch. 61). Final pay is due within six calendar days on discharge and on the next regular payday on resignation.
| Requirement | The rule | Detail |
|---|---|---|
| Pay frequency — FLSA-exempt employees | At least once a month | Tex. Labor Code ch. 61. |
| Pay frequency — everyone else | At least twice a month | Semi-monthly periods must contain as nearly as possible an equal number of days. |
| No designated paydays | Defaults to the 1st and the 15th | The employer loses the choice by failing to make one. |
| Posting | Payday notices must be posted where easily seen | A cheap, commonly missed requirement. |
| Final pay — discharged, laid off, or fired | Within six calendar days | Calendar days, not business days. |
| Final pay — quit, resigned, or retired | Next regularly scheduled payday | The separation type changes the deadline. |
| Unused PTO, vacation, or severance | Owed only if a written policy or agreement provides it | Texas creates no standalone entitlement. |
| Wage claim deadline | 180 days from the date wages were due | TWC uses the date the claim is received. |
When a Texas employer may deduct from a paycheck
| Basis for the deduction | Permitted? | Condition |
|---|---|---|
| Court order (child support, garnishment) | Yes | Withholding is mandatory once the order is received. |
| Required by state or federal law (IRS withholding, FICA) | Yes | No authorisation needed. |
| Written authorisation from the employee | Yes, for a lawful purpose | The authorisation may not be too general or too broad. |
| Repayment of a loan or advance | Only with written authorisation | An oral agreement to repay is not sufficient. |
| Cash shortages, breakage, or till discrepancies | Only with written authorisation | And never below minimum wage or into overtime pay. |
| Withholding final pay until company property is returned | No | Not permitted without written authorisation, a court order, or statutory authority. Recover the property by other means. |
Free tool
Texas Wage Claim Exposure Checker
Tests your practices against the Texas Payday Law before a claim tests them for you.
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