Compensation Process - Texas

mumtazmh · March 2007

Hi - I'm interested learning how/whether laws relating to the payroll process itself differ at all in Texas, especially El Paso, compared with the rest of the states.

Even if you could provide links etc. I think that would be helpful.

Thanks!

BLR_CMoreton · March 2007

Thanks for writing. We have detailed analysis on the laws related to paychecks on HR.BLR.com. This includes discussions of federal rules and the rules in each state. The requirements vary including the timing of payment and how often employees must be paid. There may also be state laws requiring that employees be paid within a certain period of time after their employment is terminated. In addition, some states have laws regulating the method of payment such as by check, direct deposit, or through the use of debit cards. Subscribers can access the information on HR.BLR.com using the library. Select Paychecks as the topic and then the state in which you are interested.

Texas has a number of rules including the following:

Employers must pay most employees at least twice a month. The pay periods should be as equal in length as possible. Employers may pay exempt employees at least once a month. This category includes administrative, executive, and professional employees, including teachers in elementary or secondary schools and outside salespersons (TX Labor Code Sec. 61.011). Paydays must be designated in advance. If no payday is specified, paydays are on the 1st and 15th of each month.

Wages may be paid by cash or check, electronic fund transfer, in kind, or in another form (TX Labor Code Sec. 61.016). Employers that pay their employees by check must provide for check cashing, without charge, at a bank or elsewhere.

An employer may choose to pay wages to an employee who maintains an account at a financial institution that qualifies for electronic funds transfer through a direct deposit plan. An employer who desires to use direct deposit must:

· Notify each affected employee in writing at least 60 days before the date on which the direct deposit payroll system is scheduled to begin that the employer is adopting a direct deposit payroll system; and

· Obtain from the employee any information required by the employee's financial institution that is necessary to implement the electronic fund transfer (TX Labor Code Sec. 61.017).

This information is taken directly from the Texas analysis on HR.BLR.com where you can find the rest of the state-specific rules, as well as federal information.

Hope this helps.

Compensation Process - Texas

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