Wage theft in Texas happens whenever an employer fails to pay the wages you earned, and the state’s main remedy is a free wage claim filed with the Texas Workforce Commission within 180 days of the date the pay was originally due. The Texas Payday Law, Chapter 61 of the Texas Labor Code, defines what counts as wages and sets the deadlines your employer had to meet. Federal law fills the gap for overtime and minimum wage violations. Which door you use, and how fast you move, decides whether you get paid.
What Counts as Wage Theft
“Wages” under the Payday Law means any compensation for labor or services, whether calculated by the hour, by commission, by piece rate, or on any other basis. It also covers vacation pay, holiday pay, sick leave, parental leave, and severance, but only when those benefits are set out in a written agreement or written employer policy.1State of Texas. Texas Labor Code LAB 61-001 If your employer never put a vacation policy in writing, unpaid vacation likely falls outside the statute.
A Withheld Final Paycheck
Final pay is the most common dispute. If you were fired, the employer must pay you in full no later than six calendar days after the discharge date. If you quit, your final wages are due by the next regularly scheduled payday.2State of Texas. Texas Labor Code Chapter 61 – Payment of Wages An employer that holds your check until you return a uniform or a badge is violating those deadlines.
Unauthorized Deductions
Your employer cannot take money out of your paycheck unless a court ordered it, state or federal law requires it (tax withholding, court-ordered child support), or you gave written authorization for a specific, lawful purpose.3State of Texas. Texas Labor Code LAB 61-018 Deductions for cash-register shortages, breakage, or customer walkouts without your written consent are illegal. Even with your written consent, a deduction that drops your pay below the federal minimum wage of $7.25 per hour violates the Fair Labor Standards Act.
Minimum Wage Shortfalls
Texas has no separate state minimum wage and adopts the federal $7.25 per hour floor.4Texas Workforce Commission. Texas Minimum Wage Law Any arrangement where your effective hourly pay falls below that number after lawful deductions is a violation. A flat daily rate that, divided by actual hours worked, comes out under $7.25 counts.
Unpaid Overtime and Off-the-Clock Work
Texas has no overtime statute of its own. The federal Fair Labor Standards Act requires non-exempt workers to receive at least one and a half times their regular hourly rate for every hour beyond 40 in a workweek.5U.S. Department of Labor. Overtime Pay Being told to clock out and keep working, having minutes shaved off your time records, or being pressured into unpaid “voluntary” pre-shift meetings all count. Because these are federal claims, the TWC wage claim process does not handle them; the U.S. Department of Labor does.
Tipped Workers
In tipped jobs, an employer can pay a direct cash wage as low as $2.13 per hour and claim a tip credit of up to $5.12 per hour against the $7.25 minimum, but only if tips actually fill the gap. When tips plus cash wages fall short of $7.25 in any workweek, the employer must make up the difference.6Office of the Law Revision Counsel. 29 USC 203 – Definitions Managers and supervisors cannot take any part of your tips. Hours you spend on non-tipped duties like food prep must be paid at the full minimum wage.
Being Called a Contractor When You Aren’t
Some employers avoid wage laws by labeling workers as independent contractors. If the classification is wrong, every check was short: no overtime, no minimum wage protection, no coverage under the Payday Law. The DOL’s 2024 final rule, effective March 11, 2024, uses a six-factor economic reality test to decide the question, and no single factor is decisive.7Federal Register. Employee or Independent Contractor Classification Under the Fair Labor Standards Act If you wear the company’s uniform, follow its schedule, use its tools, and work for it exclusively, a contractor label on a piece of paper won’t hold up. Misclassification complaints go to the DOL.
Criminal Theft of Service
In extreme cases, an employer who agrees to pay for work and then refuses after the work is done can face criminal charges under the Texas Penal Code’s theft of service statute, which covers anyone who intentionally secures another person’s labor by promising payment and then fails to pay after receiving a demand.8State of Texas. Texas Penal Code 31-04 – Theft of Service This is separate from the TWC wage claim, and penalties depend on the amount unpaid.
The 180-Day Deadline
This is the single most important number. You must file a wage claim with the Texas Workforce Commission within 180 days of the date the wages were originally supposed to be paid.9Texas Workforce Commission. Texas Payday Law – Wage Claim TWC uses the date it receives the claim, not the postmark. If some of your unpaid wages fall outside the window and some are still within it, file for the portion that’s still eligible. Wages past 180 days are gone under the Payday Law.
The federal FLSA gives you longer for overtime and minimum wage claims: two years from the date of the violation, or three years if the employer’s violation was willful.10Office of the Law Revision Counsel. 29 USC 255 – Statute of Limitations That longer window matters when the TWC route has closed.
How to File a Wage Claim With the TWC
The TWC system is reactive. Nothing happens until you file. Unlike the U.S. Department of Labor, TWC does not audit employer payrolls on its own.11Texas Workforce Commission. Wage Claim and Appeal Process in Texas
File using the official Paper Wage Claim form, WH-1, available on the TWC website in English and Spanish.9Texas Workforce Commission. Texas Payday Law – Wage Claim The form asks for your employer’s legal business name and physical address (not a P.O. box), the dates of every pay period where wages were withheld, the gross amount owed before taxes or deductions, and a breakdown of regular hours, overtime hours, and any unpaid bonuses or commissions. You can submit it online through the TWC portal, by mail, or by fax. If you file online, save the confirmation screen and the submission ID; that ID is your proof of filing.
The form alone opens a case, but supporting records make it harder for the employer to dispute your numbers. Pull together pay stubs, time cards, work schedules, your offer letter or employment contract, and any emails or texts where pay was discussed. Your W-2 or 1099 confirms the employer’s legal name and EIN. The more specific your records, the less room the investigator has to split the difference.
What Happens After You File
TWC mails a notice to your employer along with a response form. The employer has 14 calendar days from the date the notice was mailed to respond with records and explanation. A TWC investigator reviews both sides and issues a written decision called a Preliminary Wage Determination Order, which specifies whether the employer owes you wages and how much.11Texas Workforce Commission. Wage Claim and Appeal Process in Texas All communication goes by mail, so keep your address current with TWC.
The order becomes final 21 days after it is mailed unless either party appeals. If an appeal is filed, the original determination is set aside and a new decision is made through the appeal process.9Texas Workforce Commission. Texas Payday Law – Wage Claim Miss the 21 days and the determination stands, whichever way it went.
Once the order is final, TWC sends the case to its collections unit. The team sends a demand letter to the employer, and you receive a copy. If the employer pays, the Texas Comptroller mails you a check. If the employer refuses or cannot be reached, TWC can file a lien against the employer’s property or levy their bank accounts.9Texas Workforce Commission. Texas Payday Law – Wage Claim Collection cannot begin until at least 31 days after the order was mailed. If you know anything about the employer’s assets or bank accounts, pass it to TWC.
On top of the unpaid wages, TWC can assess an administrative penalty against the employer. The penalty cannot exceed the lesser of the amount of wages owed or $1,000 per violation, and TWC weighs the seriousness of the violation, the employer’s history, and what amount would deter future noncompliance.12State of Texas. Texas Labor Code 61-053 – Bad Faith; Administrative Penalty TWC can also require the employer to post a bond to secure future wage payments for up to three years.
The Federal Route for Overtime and Minimum Wage
The TWC handles Payday Law violations. Federal violations like unpaid overtime and minimum wage shortfalls go to the U.S. Department of Labor’s Wage and Hour Division. File by calling 1-866-487-9243 or through the DOL’s online portal.13U.S. Department of Labor. How to File a Complaint Complaints are confidential; the agency does not tell your employer who filed.
Federal law gives you a remedy Texas law does not: liquidated damages. An employer who violates federal minimum wage or overtime rules is liable for the unpaid wages plus an equal amount in liquidated damages, effectively doubling the recovery.14Office of the Law Revision Counsel. 29 USC 216 – Penalties The employer avoids liquidated damages only by proving good faith and reasonable grounds to believe they were following the law. “I didn’t know” is not enough.
You can also file a private lawsuit under the FLSA instead of, or in addition to, going through the DOL. A successful suit recovers unpaid wages, liquidated damages, and reasonable attorney’s fees. The two-year statute of limitations (three for willful violations) is your fallback if the 180-day TWC window is already closed.10Office of the Law Revision Counsel. 29 USC 255 – Statute of Limitations
Your Employer Cannot Punish You for Filing
Federal law makes it illegal for an employer to fire, demote, cut hours, reassign, or otherwise discriminate against any employee who files a wage complaint, participates in an investigation, or testifies in a wage and hour proceeding.15Office of the Law Revision Counsel. 29 USC 215 – Prohibited Acts The protection applies whether the complaint was written or verbal, and covers internal complaints to your employer as well as formal government filings.16U.S. Department of Labor. Fact Sheet 77A – Prohibiting Retaliation Under the Fair Labor Standards Act
Former employers are covered too. A past employer cannot retaliate by giving false references or interfering with your next job. Remedies for retaliation include reinstatement, back pay, and liquidated damages equal to the lost wages.16U.S. Department of Labor. Fact Sheet 77A – Prohibiting Retaliation Under the Fair Labor Standards Act File a retaliation complaint with the DOL’s Wage and Hour Division or bring a private lawsuit directly.