Texas Payroll Rules

Frequency of Payments

You must pay any non-exempt employee at least semimonthly. You must pay exempt employees at least monthly.

If you pay your employees twice per month, each pay period must be as close to the same number of days as possible.

You must designate regular paydays. If you do not designate paydays, your paydays are the 1^st and 15^th of each month. You must post, in conspicuous places, notices of your paydays.

Manner of Payments

You may pay your employees by cash or check.

You may pay your employees via direct deposit if

• you notify them in writing at least 60 days before the direct deposit payroll system is scheduled to begin, and
• you get required information from the employee concerning their chosen financial institution.

Payment Upon Separation

If you discharge an employee for any reason, you must pay them within six (6) days of the discharge.

If the employee is suspended or resigns due to a labor dispute (like a strike), you must pay them by the next regularly scheduled payday.

Deductions

You may only make a deduction from an employee’s paycheck if

• ordered by a court of competent jurisdiction,
• authorized by state or federal law, or
• the employee has given written consent to the deduction.

An employee’s written consent must be specific to the deduction and must

• give the employee a reasonable idea of the amount to be withheld, and
• have a clear indication that the deduction is to be withheld.

Uniforms & Other Required Equipment or Tools

Texas does not have any laws about whether you can require an employee to purchase a uniform or equipment necessary for them to do their job.

Pre-Hire Medical, Physical, & Drug Tests

Texas does not have any laws about whether you can require employees to pay for pre-hire exams.

Notice of Wage Reduction

There are no laws dictating whether you have to notify an employee about the wage reduction.

Paystubs

For each pay period, you must give each employee a paystub, which must include:

• the employer’s signature,
• name of the employee,
• rate of pay,
• total pay earned during the pay period,
• any deduction made and the purpose of each deduction,
• net pay, and
• total hours worked (if pay is per hour) or total units produced (if pay is per piece).

Recordkeeping

Texas does not have any specific payroll recordkeeping laws.

Notices

You must post, in conspicuous places, notices indicating when your paydays are.