The Texas Payday Act seems like it should be simple, but it’s perhaps the most complicated employment law in the state. Full of traps for the unwary, the law can spell big trouble for even innocent mistakes. Plus, it carries a fine of up to $1,000 per violation.
The Texas Payday Act covers all private employers in the state, even those with just one employee. It sets paydays at the 1st and the 15th of the month, unless you specifically set another pay period. Employees who are exempt under the federal Fair Labor Standards Act () can be paid once a month, while all other employees must be paid at least twice per month. Employers must conspicuously post notices that explain when paychecks will be distributed.
The law limits how you handle any deductions made from employees’ paychecks and sets strict guidelines for the records needed to substantiate any deductions. It applies to all deductions from paychecks except for...(register to read more)
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