Texas Final Paycheck & Payday Law Calculator

When must an employer pay an employee who was fired or laid off in Texas?

Under Texas Labor Code § 61.014(a), an employee who is discharged, laid off, or fired must be paid their final wages in full within six (6) calendar days of the discharge date. Calendar days include weekends and holidays.

Business-Closure Exception: Under TWC policy, if the sixth calendar day falls on a day when the employer's administrative or payroll office is closed (e.g., Saturday, Sunday, or a legal holiday), payment on the employer's next regular business day is considered timely.

When is a final paycheck due if I quit or resigned?

Under Texas Labor Code § 61.014(b), an employee who leaves employment voluntarily (quits, resigns, or retires) must be paid on the next regularly scheduled payday following the effective date of the resignation. Giving advance notice does not obligate an employer to pay before the next scheduled payday.

Are commissions, bonuses, and contractual fringe benefits due within the 6-day or next-payday deadline?

Not necessarily. Under Texas Labor Code § 61.015 and TWC enforcement guidelines, commissions, bonuses, and contractual fringe benefits are payable in accordance with the terms of the written agreement or policy governing them. If the agreement specifies monthly reconciliation or quarterly payment, those terms govern rather than the standard 6-day final pay rule.

Is an employer required to pay unused vacation or PTO in Texas?

No. Unlike California, Texas law does not mandate the payout of accrued vacation or paid time off unless the employer’s own written policy or employment agreement explicitly promises it (40 TAC § 821.25(a)). If company policy states that accrued PTO is forfeited upon separation or operates under a "use-it-or-lose-it" clause, Texas law enforces that policy.

What deductions can an employer legally make from my final paycheck?

Under Texas Labor Code § 61.018, deductions require a signed, written authorization from the employee prior to withholding, unless required by court order or law. However, having a signed authorization alone does not certify legality. Under federal FLSA standards (29 U.S.C. § 206) and TWC guidance:

• Statutory taxes (FICA/Medicare) and court-ordered child support can reduce pay below minimum wage.
• Bona fide employee-benefit deductions (health insurance premiums, retirement) can reduce pay below minimum wage.
• Employer-convenience or shortage deductions (cash register shortages, uniforms, property damage) cannot reduce wages below the federal minimum wage ($7.25/hr), even with a signed agreement.

Does Texas have a daily penalty like California Labor Code § 203?

No. Texas does not award continuing daily wages directly to former employees. However, workers may file a formal wage claim with the Texas Workforce Commission (TWC) within 180 calendar days of the due date. The TWC may assess an administrative penalty under Tex. Lab. Code § 61.053 against employers who withhold wages in bad faith.