San Antonio Employment Law Blog : San Antonio Employment Lawyer & Attorney : Thomas Crane Law Firm : South Texas, Bexar County TX Wage & Discrimination Issues

A frequent issue arises concerning the right of an employer to deduct debts from an employee's paycheck.  Texas Workforce Commission recognizes three occasions when an employer may make such deductions: 1) in response to an order from a competent court, such as for child support; 2) state or federally mandated withholdings; and 3) when authorized in writing by the employee.  See TWC info.  

So, for example, when the employee owes payments on a loan to the employer, the employer may not deduct those payments from the paycheck.  Even if the employer has a signed loan agreement, the employer may not deduct those payments without written authorization from the employee.  

But, the other shoe is that TWC will probably do nothing more than send letters to the employer finding them at fault.  I have personally never heard of TWC taking stronger steps than sending letters to the miscreant employer. 

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 Texas Workforce Commission is supposed to enforce the Texas statutes regarding wages.  A statute is a law passed by the state legislature.  TWC provides a summary of the Texas Payday Statute at: http://www.twc.state.tx.us/ui/lablaw/pdlsum.html.  Many employees want to know when must an employer pay the last paycheck?  Frequently,  many employers withhold the last paycheck until Joe Employee turns in his tools, pays for a damaged rear view mirror, turns in her uniforms, or whatever.  

But, the employer cannot do these things.  An employer cannot hold the final paycheck until an employee turns in tools or whatever.  The employer must pay the last paycheck within six days of the last day.  Texas Labor Code Art. 61.014.  But, this law has no real teeth.  The employer can incur a criminal penalty for missing this deadline.  But, few District Attorney’s would have the time to prosecute what they see as a relatively minor crime.  

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 Texas Workforce Commission is supposed to enforce the Texas statutes regarding wages.  A statute is a law passed by the state legislature.  TWC provides a nice summary of the Texas Payday Statute.  But, their summary does not answer one frequently asked question, when must an employer pay the last paycheck?  I am asked this often, since many employers withhold the last paycheck until Joe Employee turns in his tools, pays for a damaged rear view mirror, turns in her uniforms, or whatever.  

The employer has no choice.  The employer must pay the last paycheck within 6 days of the last day of employment.  See Tex.L.C. Art. 61.014.  But, what happens to an employer if they do not meet the six day deadline?  Not much.  The employer can incur a criminal penalty, but who will enforce that law and seek a criminal penalty?  In reality, no one does.   Most District Attorney's are far too busy to prosecute a crime they see as relatively minor. 

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 Many callers want to know about miscellaneous deductions from a paycheck.  Auto repair shops deduct for lost tools, long haul truck companies deduct for uniforms, everyone deducts for something.  Often, these employers deduct the wrong things in the wrong way.  Under the Texas Payday Statute, an employer can only deduct only what the law allows (such as income tax deductions) and what the employee agrees in writing.  

Of course, the penalty is weak: $1,000 fine or the amount of the deduction, whichever is less.  But, still, the law is clear.  Report any violations to the Texas Workforce Commission.  TWC may not do much.  But, even if all they do is send a letter finding the employer at fault, that can be helpful. 

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