Texas Labor Law

Texas Payday Law: How Many Days Does an Employer Have to Pay After Separation?

🏛️ Official Statutory Legal Grounding
Tex. Lab. Code § 61.014: Mandates that discharged employees must be paid within 6 calendar days, while resigning employees must be paid by the next scheduled payday.
Official Texas Workforce Commission (TWC) Reference →
Tex. Lab. Code § 61.018: Prohibits unauthorized deductions from wages unless court-ordered, authorized by law, or authorized in writing by the employee.
Official Texas Workforce Commission (TWC) Reference →

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.

Written Agreement Rule: Always check your employee handbook. If an employer has no written policy on PTO payout, the TWC will evaluate past company practice to determine whether vacation pay is owed.

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.

Worked Scenario: Involuntary Termination Deadline

David worked as an hourly logistics technician in Dallas at $22.00/hour. He was discharged on Tuesday, March 10.

Termination DateTuesday, March 10
Separation ClassificationInvoluntary (Discharged / Laid Off)
Statutory Deadline (6 Calendar Days)Monday, March 16
Statutory Payment FormDirect deposit or mailed check
Wage Claim Filing DeadlineWithin 180 days of due date
💡 Key Takeaway: Under the Texas Payday Law, calendar days include weekends. If day 6 falls on a holiday or weekend, payment must still be disbursed on time.

Calculate Your Exact Numbers

Calculate your Texas take-home pay with zero state income tax. 100% private and runs strictly in your browser.

Launch Calculator →

Frequently Asked Questions

Only if you signed a written authorization prior to the deduction. Under Tex. Lab. Code § 61.018, payroll deductions are strictly prohibited without a valid, signed agreement explicitly authorizing that specific deduction.
No. The Texas Constitution prohibits individual income taxes. Your final paycheck will only have federal income tax, Social Security (6.2%), and Medicare (1.45%) withheld.
Under TWC regulations, if the 6th calendar day falls on a legal holiday or Sunday, payment is generally due on the following business day, but employers are strongly advised to issue payment earlier to prevent statutory exposure.
Editorial & Legal Notice: PaycheckRights provides source-verified educational information and calculation modeling based on current federal and state labor codes. This content is not formal legal representation or personalized tax accounting advice.