Chapter 5

 

WAGE GARNISHMENT

AND

TEXAS PAYDAY LAW

 

Frank L. Carrabba

Law Office of Frank L. Carrabba, P.C.

 

Summary

 

Wage Garnishment

 

  1. An employee's wages may not be garnished in Texas except for court-ordered child support or spousal maintenance payments and, pursuant to federal law, for default on student loans.
  2. An employer who does not deduct court-ordered child support or spousal maintenance payments from an employee's paycheck is liable for the payment itself, plus reasonable attorneys' fees, court costs, and a fine of $200.
  3. An employer may not discriminate against an employee because of a court order to withhold income from the employee's paycheck for child support or spousal maintenance payments.
  4. An employer may be served with a withholding order issued by the Texas Guaranteed Student Loan Corporation to garnish wages of borrowers in default on government-backed student loans.

 

Texas Payday Law, V.T.C.A., Labor Code §§61.001-084 (Supp. 1994)

 

  1. Pay wages at least twice a month to employees not exempt from overtime, and at least once a month to those who are exempt. Pay commissions and bonuses on time as agreed, and pay fringe benefits as agreed in writing.
  2. Make semi-monthly pay periods as equal in length as possible.
  3. Designate paydays. The law says failure to do so means paydays must be the 1st and 15th of each month.
  4. Post notices of paydays in conspicuous places.
  5. Pay an absent employee on a regular business day at the employee's request.
  6. Pay a discharged employee in full no later than the sixth day after discharge, and pay an employee who quits no later than the next regularly-scheduled payday.
  7. Pay wages by electronic funds transfer, check negotiable on demand, or cash, unless the employee agrees in writing to payment in another form.
  8. Send wages by registered mail to arrive by payday, or deliver wages to employees at work, unless the employee agrees in writing to payment by other means.
  9. Do not deduct from an employee's wages unless ordered by a court, authorized by law, or authorized in writing by the employee for a lawful purpose.
  10. Comply on time with all TWC** and court orders on payment of wages, penalties, and bonds.
  11. Give paychecks to the employee only, unless the worker authorizes in writing that the check can be given to someone else.
  12. Call the TWC at 1-800-832-9243 for advice any time there is a question about the Texas Payday Law.
  13. Post the required payday poster notifying employees where complaints can be filed if there is ever a dispute over a paycheck.

 

* The foregoing steps to payday law compliance were published in the May 1992 issue of Texas Business Today.

 

** Effective June 1, 1996, the Texas Workforce Commission replaced the Texas Employment Commission.