Labor Code § 61.014 – Payment of Wages after Termination of Employment (Final Paychecks)

Code Details

LABOR CODE

TITLE 2. PROTECTION OF LABORERS

SUBTITLE C. WAGES

CHAPTER 61. PAYMENT OF WAGES

Exact Statute Text

Labor Code § 61.014 Summary

This Texas Labor Code section outlines the specific deadlines by which employers must issue a final paycheck to employees whose employment has ended. The exact timeline for payment depends on how the employment concluded. If an employee is discharged or fired by their employer, their final wages must be paid in full no later than the sixth day after the date of their termination. Conversely, if an employee voluntarily leaves their job, such as by resigning or quitting, the employer is required to pay them in full by the next regularly scheduled payday following their departure. This statute applies to all employers and employees within Texas and ensures that individuals receive all earned wages promptly after their employment ends.

Purpose of Labor Code § 61.014

The legislative intent behind this particular Texas Labor Code provision is to protect workers from undue financial hardship by ensuring they receive their final earned wages in a timely manner after their employment concludes. This law prevents employers from withholding an employee’s last paycheck, which could leave individuals without essential income to cover living expenses, especially during a transitional period between jobs. By establishing clear deadlines, the statute aims to provide financial predictability for employees, reduce potential disputes over unpaid wages, and ensure a smooth, fair separation process, regardless of whether the employee was terminated or voluntarily resigned. It addresses the fundamental problem of employees being left in financial limbo after their last day of work.

Real-World Example of Labor Code § 61.014

Consider two different scenarios involving employees in Texas:

Scenario 1: Employee Discharged

Maria works as a retail manager for “Fashion Forward Boutique.” On a Tuesday, her employer informs her that her employment is terminated due to restructuring, effective immediately. Under Labor Code § 61.014(a), Fashion Forward Boutique must pay Maria all of her accrued and unpaid wages, including any earned commissions or vacation pay, by the following Monday (the sixth day after her Tuesday discharge). If the employer fails to provide her final paycheck by this deadline, they would be in violation of the statute.

Scenario 2: Employee Resigns

John works as a marketing associate for “Innovative Solutions Inc.” He decides to accept a new job offer and submits his two-week notice, with his last day of employment being a Friday. Innovative Solutions Inc.’s regularly scheduled payday is every other Friday. According to Labor Code § 61.014(b), John’s final paycheck, covering all wages earned up to his last day, must be issued to him on the next regularly scheduled payday following his departure. If the next payday is the following Friday, his final wages are due on that day.

Related Statutes

• Labor Code § 61.001 (Definitions): This section defines key terms used within Chapter 61, such as “employee,” “employer,” and “wages,” which are crucial for understanding the scope and application of the payment of wages provisions.
• Labor Code § 61.002 (General Wage Payment Rule): This statute establishes the general rule that an employer must pay an employee wages at least once a month, ensuring regular compensation during employment.
• Labor Code § 61.018 (Penalties for Nonpayment): This section outlines the penalties an employer may face for failing to pay wages as required by Chapter 61, including administrative penalties and potential liability for an additional amount equal to the amount of the unpaid wages.
• Labor Code § 61.051 (Administrative Claim): This statute details the process by which an employee can file a wage claim with the Texas Workforce Commission (TWC) if their employer fails to pay wages as required by law.

Case Law Interpreting Labor Code § 61.014

While specific published appellate case law directly interpreting every nuance of Texas Labor Code § 61.014 is not extensive, courts often address its application within broader wage claim disputes. Interpretations commonly revolve around what constitutes “wages” for purposes of final payment and the employer’s good faith efforts to comply.

• _Ibarra v. Harris Cnty. Appraisal Dist._, 484 S.W.3d 608 (Tex. App.—Houston [14th Dist.] 2016, no pet.): This case, while not exclusively on § 61.014, discusses the definition of “wages” under the Texas Payday Law, which is fundamental to determining what must be paid upon termination. It helps clarify what an employee is entitled to receive in their final paycheck. Link to Google Scholar search result for Ibarra v. Harris Cnty. Appraisal Dist.
• _Daugherity v. United Plastics, Inc._, No. 11-08-00216-CV, 2009 WL 2231260 (Tex. App.—Eastland July 23, 2009, no pet.) (mem. op.): This case also touches upon the definition of “wages” and the employer’s obligations under the Texas Payday Law regarding timely payment, reinforcing the scope of what falls under this statute. Link to Google Scholar search result for Daugherity v. United Plastics, Inc.

Why Labor Code § 61.014 Matters in Personal Injury Litigation

While Texas Labor Code § 61.014 primarily deals with wage payment, its implications can indirectly affect personal injury litigation, especially concerning a plaintiff’s financial stability and the calculation of economic damages.

Firstly, in personal injury cases where the plaintiff has suffered an injury that affects their ability to work, their employment status and income after the injury become critical. If an injured individual is terminated or forced to resign due to their injuries, the timely receipt of their final wages per this statute helps ensure they have immediate financial resources. Delays or non-payment of these wages can exacerbate the financial strain on an already injured individual, potentially impacting their ability to pay for medical treatment, daily expenses, or even the costs associated with pursuing their personal injury claim.

Secondly, this statute is relevant to the calculation of economic damages in a personal injury claim, particularly lost wages and loss of earning capacity. If an employer fails to pay final wages as required, it creates additional financial loss on top of the income lost directly due to the injury. Attorneys must account for all sources of lost income when calculating damages. A violation of this statute by an employer, even if not directly caused by the defendant in the personal injury case, adds another layer of financial hardship for the plaintiff that an attorney might need to address, either through a separate wage claim or by demonstrating the full scope of financial distress suffered by their client.

Finally, in discovery during a personal injury case, an injured plaintiff’s employment records, including final paychecks, are often requested. Compliance with Labor Code § 61.014 ensures clear and timely documentation of an employee’s wages, which can simplify the process of accurately assessing past lost income or future earning potential. Non-compliance could lead to complications in establishing the plaintiff’s full economic losses.