Texas final paycheck rules under the Payday Law
Reviewed Sep 24, 2026 5 official sources How we verify
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The answer
Discharged: 6th calendar day. Resigned: next regular payday
Section 61.014 of the Texas Labor Code gives employers two deadlines. An employee who is discharged is paid in full no later than the sixth day after the discharge, and the Texas Workforce Commission (TWC) counts those as calendar days. An employee who leaves in any other way, such as quitting, resigning or retiring, is paid in full no later than the next regularly scheduled payday. (Texas Labor Code chapter 61 (sections 61.001, 61.014, 61.018, 61.051, 61.053))
“Sec. 61.014. PAYMENT AFTER TERMINATION OF EMPLOYMENT. (a) An employer shall pay in full an employee who is discharged from employment not later than the sixth day after the date the employee is discharged.”
What it means for Texas employers
TWC reads discharge broadly: layoffs, firings and any other involuntary separation all start the six day count. Weekends are not skipped, so a Friday discharge is due the following Thursday. (Texas Labor Code § 61.014(a))
For a voluntary departure the anchor is the payroll calendar, not the resignation date. The next regular payday after the effective date of the resignation is the last lawful day to pay. (Texas Labor Code § 61.014(a))
Commissions, bonuses and fringe benefit payouts share the same deadlines unless the written wage agreement or policy for that particular item sets a different payment schedule, in which case TWC says the agreement controls. (Texas Labor Code § 61.014(a))
Holding the final check hostage is not allowed. TWC's Final Pay page says an employer that knows or should know what is owed has to deliver it by the deadline even if the worker has not returned company property or signed timesheets. Those problems can be handled through a lawful wage deduction or a property return security deposit, and section 61.018 allows a deduction only under a court order, when state or federal law authorizes it, or with the employee's written authorization for a lawful purpose. (Texas Labor Code chapter 61 (sections 61.001, 61.014, 61.018, 61.051, 61.053))
TWC even offers a sample wage agreement under which the final pay period is paid at a lower rate (never under minimum wage) unless the worker gives two weeks of written notice, returns company property and hands over access credentials. TWC notes it is not an official form. (Texas Workforce Commission, Texas Guidebook for Employers: Final Pay)
Accrued leave is paid out only when a written policy or agreement promises it. Under section 61.001(7)(B), vacation, holiday, sick, parental or severance pay owed under a written agreement or policy counts as wages under the Payday Law, so it follows the same deadline. Without such a policy, TWC says nothing is owed. (Texas Labor Code chapter 61 (sections 61.001, 61.014, 61.018, 61.051, 61.053))
Texas does not require a general separation notice, but TWC says the employer gives the departing employee a notice of the right to file an unemployment claim; an official sample appears on the required TWC poster. (Texas Labor Code § 61.014(a))
Penalties and liability
If a TWC examiner, appeal tribunal or the Commission finds the employer acted in bad faith in not paying wages, it may add an administrative penalty on top of the wages ordered. Section 61.053 caps that penalty at the lesser of the wages in question or $1,000. (Texas Labor Code chapter 61 (sections 61.001, 61.014, 61.018, 61.051, 61.053))
Employees have 180 days from the date the wages were due to file a wage claim with TWC (section 61.051); a late claim is dismissed for lack of jurisdiction. (Texas Labor Code chapter 61 (sections 61.001, 61.014, 61.018, 61.051, 61.053))
Exceptions and special cases
- Written agreements can set a separate payout schedule for commissions, bonuses and similar pay components (TWC Final Pay). (Texas Workforce Commission, Texas Guidebook for Employers: Final Pay)
- Paid leave payout exists only if promised in writing; forfeiture terms written into the policy control (TWC Accrued Leave Payouts). (Texas Workforce Commission, Accrued Leave Payouts)
Worked examples
Fired on Friday, October 2, 2026
Day one is Saturday, October 3; day six is Thursday, October 8, 2026. The full final pay, including any written-policy vacation payout, is due no later than that Thursday. (Texas Workforce Commission, Texas Guidebook for Employers: Final Pay)
Laid off on Monday, November 16, 2026
A layoff counts as a discharge. Six calendar days later is Sunday, November 22, so paying on Friday, November 20 keeps the deadline from falling during a weekend when payroll staff are off. (Texas Labor Code § 61.014(a))
Resignation effective Wednesday, October 14, 2026
The company pays semimonthly on the 15th and the last day of the month. The next regularly scheduled payday after October 14 is Thursday, October 15, 2026, and the final pay is due on that date. (Texas Workforce Commission, Texas Guidebook for Employers: Final Pay)
How to act on it
Final paycheck: Texas and neighboring states
Each state links to its rulebook. Only rules we verified are shown.
| State | After firing | After quitting |
|---|---|---|
| Texas | 6 calendar days | Next regular payday |
| New Mexico | Pending verification | Pending verification |
| Oklahoma | Next regular payday | Next regular payday |
| Arkansas | Next regular payday | Pending verification |
| Louisiana | Pending verification | Pending verification |
Questions about Texas final paycheck rules
Are the six days in Texas business days?
No. TWC describes the deadline for discharged employees as six calendar days, so weekends and holidays count.
Can I keep the last paycheck until the employee returns a company phone?
No. TWC says holding final pay for unreturned property is not legal; use a written deduction authorization or a property deposit instead.
Do Texas employers have to pay unused vacation?
Only if a written policy or agreement promises it, and then the policy wording controls the amount and conditions.
What is the penalty for paying late in Texas?
If TWC finds bad faith, an administrative penalty of up to the wages claimed or $1,000, whichever is less, under Labor Code 61.053.
Does retiring count as a discharge?
No. Retirement is a voluntary departure, so the final pay is due on the next regularly scheduled payday.
The verified rules behind this page (4)
- An employee who is discharged must be paid in full not later than the sixth calendar day after discharge. (Texas Labor Code § 61.014(a); verified Sep 24, 2026)
- An employee who leaves employment other than by discharge (quits, resigns, retires) must be paid in full not later than the next regularly scheduled payday. (Texas Labor Code § 61.014(b); verified Sep 24, 2026)
- Texas requires a payout of accrued leave only if the employer promised it in a written policy or agreement, and the payout is controlled by the wording of that policy. Vacation pay owed under a written agreement or written policy counts as wages under the Texas Payday Law. With no such policy, no payout is owed. (Texas Workforce Commission, Accrued Leave Payouts; verified Sep 24, 2026)
- Texas does not require a general separation notice or 'pink slip', but an employer must give a departing employee a notice of their right to file an unemployment claim; an official sample is included in the required TWC poster for unemployment insurance and the Texas Payday Law. (Texas Workforce Commission, Texas Business Today: Exit Interviews - Notice of Discharge; verified Sep 24, 2026)
Sources (5)
- Texas Labor Code chapter 61 (sections 61.001, 61.014, 61.018, 61.051, 61.053)
- Texas Workforce Commission, Texas Guidebook for Employers: Final Pay
- Texas Workforce Commission, Accrued Leave Payouts
- Texas Workforce Commission, Exit Interviews: Notice of Discharge
- Texas Workforce Commission, Texas Guidebook for Employers (2024)
Checked Sep 24, 2026 · How we verify every rule · Report an error
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