Texas Payday Law: How Many Days Does an Employer Have to Pay After Separation?
The Two Timelines: Fired vs Quitting in Texas
Unlike California, which requires immediate payment upon termination, Texas operates under the Texas Payday Law (Texas Labor Code Chapter 61), administered by the Texas Workforce Commission (TWC). The law establishes two distinct deadlines based on the nature of the departure.
If an employee is discharged, fired, or laid off by the employer, all final wages must be paid in full within six (6) calendar days after the date of termination.
If an employee resigns, quits, or retires voluntarily, the employer is not required to expedite payment within six days. Instead, final compensation is due on the next regularly scheduled payday following the resignation date.
Are Employers Required to Pay Out Accrued Vacation / PTO in Texas?
Unlike states that classify accrued vacation as non-forfeitable vested wages, Texas law leaves PTO payout entirely to the employer's written policy or employment agreement.
Under Texas Labor Code § 61.014, an employer is only legally required to pay out accrued fringe benefits (such as vacation or sick leave) upon separation if the employer's written policy, employee handbook, or contract explicitly promises to do so.
If the company policy contains a written 'use-it-or-lose-it' clause or states that PTO is forfeited upon termination, Texas courts and the TWC will enforce that policy. However, if the policy promises payment upon termination, the employer must honor it as part of your final wages.
How to File a TWC Wage Claim If You Are Not Paid
If an employer misses the 6-day deadline or fails to pay your earned wages, you have the right to file an administrative wage claim with the Texas Workforce Commission.
There is a strict statute of limitations: your wage claim must be filed within 180 calendar days of the date the wages were originally due. If you wait past 180 days, the TWC loses administrative jurisdiction to collect the funds.
Claims can be submitted online through the TWC portal. If the TWC finds that the employer acted in bad faith, it can order administrative penalties in addition to the unpaid wages.
David worked as an hourly logistics technician in Dallas at $22.00/hour. He was discharged on Tuesday, March 10.
| Termination Date | Tuesday, March 10 |
| Separation Classification | Involuntary (Discharged / Laid Off) |
| Statutory Deadline (6 Calendar Days) | Monday, March 16 |
| Statutory Payment Form | Direct deposit or mailed check |
| Wage Claim Filing Deadline | Within 180 days of due date |