Vacation Pay is not Owed to Departing Texas Employees

Under the Texas Payday Statute, terminated employees are not entitled to their vacation pay when they leave their job.  So explains Russ Cawyer in this post. The same statutory provision applies to sick leave or severance pay.  Such benefits are owed to the employee only if the departing employee has a valid contract providing for those benefits.  You can view the Texas Payday statute here.  

 

The (Few) Rights of Terminated Employees

 For a good summary of the rights of Texas employees when they lose their job, see Aaron Ramirez' post from last March.  Note that Aaron makes no mention of the employer paying the employee for any accrued vacation or sick leave.  An at-will employee, which includes most employees in Texas, has no right to be paid for vacation and sick leave.  You receive severance pay only if the employer expressly agrees to do so.  

A terminated employee has the right to continue health insurance.  But, you will have to pay the employer's portion, wichh often makes the health insurance too expensive.