Employers are responsible for paying employees their final paycheck on time when employment ends. Missing these deadlines can lead to serious legal and financial consequences.
When do employers need to issue final paychecks?
Under the Texas Payday Law, employers must meet specific deadlines based on how the employment ended:
- Fired or laid-off employees: Employers must issue the final paycheck within six calendar days of the termination.
- Employees who quit: Employers must provide the final paycheck by the next regularly scheduled payday after the resignation.
These rules ensure employees get the wages they earn.
What happens when an employer misses the deadline?
When an employer fails to pay on time, employees can file a wage claim with the Texas Workforce Commission (TWC). The law gives employees 180 days from the missed payment to file a claim. The process holds employers accountable for delays and ensures that employees receive their earned wages.
The TWC investigates claims and requires employers to pay what they owe. Employers who violate the law face additional penalties. Consequences include paying the full amount of owed wages, fines or penalties, and interest on late wages. Also, employers who consistently fail to meet wage payment deadlines may also face reputational damage, which can impact their ability to attract and retain quality employees.
The importance of following wage laws
Paying wages on time isn’t just about avoiding legal consequences. It’s essential for maintaining trust between employers and employees. Late paychecks damage relationships and create legal headaches. By following Texas wage laws, employers protect their businesses from costly penalties and build positive workplace environments.
