Texas Final Paycheck Law

Short answer

Texas final paycheck law is in chapter 61 of the Texas Labor Code, often called the Texas Payday Law. The deadline depends on who ended the job. It does not set a pay rate. It sets when earned wages must be paid.

An unpaid worker can file a wage claim with the Texas Workforce Commission (TWC). It must be filed within 180 days after the wages became due, under section 61.051(c).

Fired or quit: how TWC sorts the separation

TWC's Final Pay guidance explains how it tells the two deadlines apart. Being laid off, discharged, fired, or otherwise involuntarily separated puts final pay at six calendar days. Quitting, retiring, resigning, or otherwise leaving voluntarily puts it on the next regularly scheduled payday after the resignation takes effect.

TWC adds that "mutual agreement" separations are generally treated as involuntary, though not always. It looks at all the events leading to the separation. In TWC's words, if the employee starts the separation and leaves while work is still available, it is voluntary. If the employer starts it and the employee has no choice, it is involuntary.

One more point from the same guidance: if an employer accepts a resignation early, before its effective date, TWC says the employer does not owe pay for the unworked part of the notice period unless a contract says otherwise.

What counts as wages

Under section 61.001(7), wages are compensation owed for labor or services, whether figured by time, task, piece, commission, or another basis. They also include vacation, holiday, sick leave, parental leave, and severance pay, but only when owed under a written agreement with the employer or a written employer policy.

Coverage has limits. Section 61.001(3) excludes independent contractors and people related to the employer or the employer's spouse within the first or second degree by blood or marriage. Section 61.003 says the chapter does not apply to the United States, the State of Texas, or a political subdivision.

Paydays, payment form, and deductions

Section 61.011 requires employees exempt from federal overtime rules to be paid at least once a month, and all others at least twice a month. If an employer does not designate paydays, section 61.012(b) makes them the first and 15th of each month. That matters for a worker who quits, because the next regular payday sets the deadline.

Section 61.016 allows payment in U.S. currency, by a negotiable check or similar instrument, or by electronic transfer to an account the employee chose or a payroll card account. A check that is not negotiable, or that is refused for a reason tied to the employer, does not count as payment. Section 61.017(b) lists five ways to deliver pay, including registered mail that must arrive by payday.

Section 61.018 is a closed list. An employer may withhold or divert part of wages only if a court orders it, state or federal law authorizes it, or the employee gave written authorization for a lawful purpose.

What to do if your final paycheck is late or short

1. Gather your records

   Collect pay stubs, time records, your offer letter or wage agreement, any written commission, bonus, or leave policy, and proof of your last day. Write down whether you quit or were let go, and on what date.

2. Work out the due date

   Use the table above. For a discharge, count six calendar days. For a resignation, find the next regularly scheduled payday. The 180-day claim period runs from this due date, not from your last day of work.

3. Follow up with the employer in writing

   Ask for the missing pay, list what you think is owed, and keep a copy. Chapter 61 does not require this step before a wage claim. It creates a record and sometimes settles the problem. Do not let it run past your filing deadline.

4. Read TWC's guidance

   TWC's Final Pay page is the agency's own explanation of the final-pay rules, including fringe benefits, commissions, and held paychecks.

5. File a wage claim with TWC within 180 days

   Section 61.051(b) requires a claim on a TWC-prescribed form, verified by the employee. Section 61.051(d) allows filing in person at a TWC office, by mail or fax to a TWC-designated address or number, or electronically as TWC sets by rule. Use TWC's wage claim page to check the agency's current filing options and forms before submitting a claim.

6. Watch for the preliminary order and the 21-day window

   Under section 61.052, an examiner reviews the claim and issues a preliminary wage determination order that dismisses it or orders payment. Under section 61.054(b), either side may ask in writing for a hearing not later than the 21st day after the notice is mailed.

The 180-day deadline, precisely

Section 61.051(c) says a wage claim must be filed not later than the 180th day after the date the wages became due, and that this deadline is a matter of jurisdiction. Under section 61.052(b-1), the examiner must dismiss a late claim for lack of jurisdiction. No good-cause exception appears in the text.

This 180-day limit is for a chapter 61 wage claim with TWC. It does not set the time limit for every possible legal claim about pay. Chapter 61 does not make the TWC claim the only route, and a lawsuit under other law has its own rules.

Why the 21 days matter

If neither side asks for a hearing in time, section 61.055 makes the preliminary order the commission's final order for all purposes. Neither side is then entitled to judicial review of it under that subchapter. For the agency's guidance on further appeals, check TWC's appeals page.

The bad-faith penalty: who gets it and how much

Wages owed and a penalty are two different things.

• Wages owed. The examiner, appeal tribunal, or commission can order the unpaid wages. Under section 61.064, the commission pays wages it collects to the claimant within 30 days after the claim is finally resolved.
• Administrative penalty. Under section 61.053(a), if the employer acted in bad faith in not paying wages, TWC may assess a penalty in addition to ordering the wages. Under section 61.053(c), it may not exceed the lesser of the wages in question or $1,000.
• Where the penalty goes. Section 61.065 tells the commission to deposit collected penalties in a state fund. The penalty is not an extra payment to the worker.

Section 61.053(b) also lets TWC penalize an employee who brought a wage claim in bad faith, under the same cap. Section 61.053(d) lists what TWC weighs in setting the amount, including how serious the violation was and any past violations.

Where a court fits

Section 61.051(a) says an employee may file a wage claim. Chapter 61 does not say it is the only route to unpaid wages. A lawsuit is a separate path governed by other law, and section 61.055 is a reason to choose carefully. How a justice court case works is covered in the guide to suing in small claims court. Benefits after a job loss are covered in who qualifies for unemployment in Texas, part of the Texas employment and wage guides in our guides to Texas law.