Wage Theft Laws in Texas: Your Protections as a Worker

The Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq., establishes the federal minimum wage of $7.25 per hour and requires overtime pay at 1.5 times the regular rate for hours worked over 40 per week. The FLSA covers most employers with at least 50 employees or $500,000 in annual revenue, though certain industries have different thresholds. The law prohibits wage deductions that reduce pay below minimum wage or eliminate overtime compensation.

Federal wage theft protections cover all employees except certain exempt categories (executive, administrative, professional, outside sales, and computer employees under specific salary thresholds). The U.S. Department of Labor (DOL) enforces the FLSA through its Wage and Hour Division. Employees can file complaints with the DOL or file private lawsuits seeking unpaid wages, liquidated damages equal to unpaid wages, and attorney fees. The statute of limitations is 2 years for non-willful violations and 3 years for willful violations under 29 U.S.C. § 255.

Texas Labor Code § 34.02 provides additional state-level wage theft protections that, in some respects, are more specific but generally align with federal law. Texas explicitly prohibits employers from making deductions from wages for cash shortages, breakage, losses, or damage to company property, regardless of fault or negligence. Section 65.001 establishes the Texas Payday Law, requiring employers to pay all earned wages at least once a month on a regular payday, and requiring final wages to be paid within 15 days of employment termination or by the next regularly scheduled payday, whichever is earlier.

Texas Labor Code § 34.01 sets the statute of limitations at 2 years from the date of the wage violation for filing a claim with the Texas Workforce Commission (TWC). This is shorter than the federal 3-year willful violation period but matches the federal 2-year default for non-willful violations. Texas covers all employers with employees, including small businesses, with no minimum employee count threshold.

Texas law is less protective than federal law in some respects: Texas has no state minimum wage (federal $7.25 applies), no state overtime requirement, and no explicit provision for liquidated damages equal to unpaid wages (unlike the FLSA). However, Texas does allow recovery of attorney fees and court costs, which encourages private enforcement. The TWC enforces state wage laws through its Wage Claim Program. Employees can file a wage claim with the TWC at no cost, or pursue private lawsuits in district court. Texas courts have recognized common law claims for breach of contract and quantum meruit for unpaid wages beyond the statutory 2-year window in limited circumstances.

Texas Labor Code § 34.02 contains critical exceptions that significantly limit wage theft protections. Employers may make deductions for court-ordered judgments, garnishments, tax withholding, and properly authorized voluntary deductions (such as health insurance or retirement contributions). However, the deduction must not reduce the employee's wages below the minimum wage or violate the agreement under which the deduction was authorized.

Salary-based employees exempt from overtime under the federal white-collar exemptions (executive, administrative, professional, outside sales, and certain computer positions) are generally not protected by minimum wage or payday law requirements in the same manner as hourly employees, though they remain entitled to timely payment of promised wages.

Independent contractors are not covered by Texas wage laws; they are engaged under contract and not considered employees. Similarly, commissioned employees may have different payday requirements if the commission structure is properly established in writing and includes a regular payday or statement of commission earned.

At-will employment is the default in Texas, but this does not permit wage theft; termination does not eliminate the duty to pay earned wages. However, an employer's good-faith dispute over the amount owed or the employee's entitlement to wages may provide a defense, though the burden is on the employer to prove the dispute is genuine and not pretextual. Union agreements and collective bargaining contracts may establish different wage payment terms, but they cannot waive statutory protections below minimum wage or extend payment deadlines beyond statutory limits.

Step 1: Document the violation immediately. Keep pay stubs, time sheets, emails from your employer regarding compensation, text messages about pay, your job offer letter, any written policies about deductions or payday schedules, and records of hours worked. If your employer made an improper deduction, photograph or screenshot the pay stub showing the deduction. Create a written summary of when wages were promised, when they were due, and when they were or were not paid. Note the name of the manager or owner responsible for the wage violation.

Step 2: Attempt an internal complaint if you feel safe doing so. Email your manager or human resources with a clear statement: "I was not paid in full for [specific dates worked]. My pay stub shows a deduction of $X for [reason]. Please explain this deduction and ensure I receive all earned wages by [date]." Keep a copy of this email and any response. This step creates a paper trail and may prompt quick resolution, but it is not required before filing a claim with the state.

Step 3: File a wage claim with the Texas Workforce Commission (TWC). Visit the TWC Wage Claim webpage at https://www.twc.texas.gov/jobseekers/file-wage-claim or call the TWC Wage Claim Program at 1-800-215-1527. You can file online, by phone, or by mail. You must file within 2 years of the violation. Provide: your full name and contact information, the employer's name and address, the dates you worked and were not paid, the amount owed, a description of what happened, and copies of your pay stubs. The TWC will then notify the employer and attempt to resolve the dispute. The process typically takes 2-8 weeks for initial investigation.

Step 4: Expect the investigation process to unfold as follows. The TWC will send a notice to the employer requiring a response within a set period. The employer may dispute the claim, claim a good-faith disagreement about the amount, or admit the violation. The TWC may request additional documentation from both you and the employer. You may be contacted to provide a detailed account of your hours worked. If the TWC finds in your favor, it will issue a determination ordering the employer to pay the unpaid wages. The employer can appeal to the Texas Labor and Workforce Development Board (TLED Board) within 21 days. If the employer appeals, you will have the opportunity to present your case to a hearing officer. This appeals process can add 4-12 weeks.

Step 5: Consult an employment attorney if the TWC determination is appealed, if the amount owed exceeds $5,000, or if you believe the wage violation is part of a pattern affecting multiple employees. An employment law attorney can file or defend an appeal before the TLED Board, negotiate a settlement, or file a private lawsuit in district court seeking unpaid wages, attorney fees, and court costs. Many employment attorneys work on contingency (no upfront cost) and are paid from the recovery. Consider consulting an attorney even before filing with the TWC if the employer has retaliated against you for complaining about wages, as this may involve additional legal claims beyond wage theft.