Final Paycheck
Wages owed to an employee at the conclusion of employment, including earned wages, overtime, accrued vacation pay (if owed under a written agreement or written policy), commissions, and bonuses. Texas law specifies firm timing requirements: 6 days for involuntary termination, next regular payday for voluntary resignation.
The "final paycheck" is the wages owed to an employee at the conclusion of employment, including all earned but unpaid regular wages, overtime, accrued vacation pay (if owed under a written agreement or written policy), commissions, and bonuses. Texas law specifies firm timing requirements for delivery of the final paycheck.
Timing requirements
Involuntary termination (employer-initiated, with or without cause): the employer must deliver final wages within six calendar days of termination. § 61.014(a). The six-day rule applies to layoffs, dismissals and most other employer-initiated departures. The Texas Workforce Commission generally treats a mutual-agreement separation as involuntary, though that result depends on the circumstances.
Voluntary resignation (employee-initiated): the employer must deliver final wages by the next regularly scheduled payday following the resignation date. § 61.014(b). This may mean waiting up to one full pay cycle.
What must be included
Earned regular wages and overtime through the date of separation; commissions due under company policy; bonuses earned and payable; accrued vacation pay if a written agreement or written policy requires payout (the Payday Law treats vacation pay as wages only in that case). § 61.001(7)(B).
Permissible deductions
Same rules as any other wage payment under § 61.018, only legally-required, court-ordered, or written-employee-authorized deductions. Employers cannot deduct for property damage, unreturned equipment, or alleged debts without specific written authorization.
Final paycheck disputes can arise from (1) waiting for the next payroll cycle on involuntary terminations (six-day rule applies, not next payday); (2) deducting for unreturned equipment without proper authorization; (3) failing to pay accrued commissions or bonuses; (4) miscalculating accrued vacation under the employer's own policy.
Companion article: Before Firing an Employee in Texas