Layoffs and other situations
TWC treats layoffs and employer-initiated separations (generally including 'mutual agreement' separations) as involuntary, so the six-calendar-day rule applies; retirement and resignation are voluntary and follow the next-regular-payday rule. Lump-sum leave payouts of $500 or more may require notice to the Attorney General for child-support garnishment purposes (TWC final pay page: https://efte.twc.texas.gov/final_pay.html). Source: twc.texas.gov↗ (opens in a new tab)
Unused vacation and PTO
Depends on written policy or agreement. TWC: if no written policy promises payout, the employer does not owe it; forfeiture under a written policy is allowed. Source: efte.twc.texas.gov↗ (opens in a new tab)
If the final paycheck is late
If TWC finds the employer acted in bad faith in not paying wages, it may assess an administrative penalty up to the lesser of the wages in question or $1,000, on top of ordering payment (Tex. Lab. Code § 61.053). Source: twc.texas.gov↗ (opens in a new tab)
The law and where to check
The law: Tex. Lab. Code § 61.014 (TWC official copy of Chapter 61) (opens in a new tab)
The agency: Texas Workforce Commission (TWC), Labor Law / Payday Law (opens in a new tab)
What federal law says
The federal Fair Labor Standards Act does not require employers to give a final paycheck immediately. The U.S. Department of Labor says an employee who has not received final pay by the regular payday for their last pay period can contact its Wage and Hour Division or the state labor department. Source: U.S. Department of Labor↗ (opens in a new tab)
Final paycheck checklist for Texas employers
A simple order of work, based on the rules above. It is not a legal checklist.
- Write down how the job ended: fired or let go, or the employee quit. If they quit, note whether and when they gave notice.
- Find the deadline for that situation in the table above.
- Add up all hours worked up to the last day, including any overtime.
- Check your written vacation or PTO policy and the vacation rule above.
- Add any commission or bonus that was earned, using the rules above.
- Pay on time by your usual method, or by mail if the rules above allow it and the employee asks.
- Keep a dated record of what you paid and when.
More Texas employment law guides
- All Texas employment laws
- Texas paid sick leave law
- Texas meal and rest break laws
- Texas overtime law
- Texas pay frequency law
- Texas vacation and PTO payout law
- Texas new hire reporting
- Texas at-will exceptions
Final paycheck laws in other states
See every state on one page, or pick a state:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
All official government sources, last checked October 19, 2026.
Disclaimer: This guide provides general information based on publicly available official sources and is for information only. It is not legal, tax, payroll or employment-law advice and does not guarantee compliance with federal, state or local requirements. Rules can depend on your location, industry, contracts and other circumstances, and laws change. Always check the official source, the relevant government agency or a qualified professional before making a decision. MadyHR.ai accepts no responsibility for any action taken based on this page.
Last checked: . Every rule and source link on this page was checked against the official government source on this date. Laws change, so always open the source link before you act.