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Free Self-Audit • Texas Payday Law

Texas Payday Compliance Audit

A self-audit against the Texas Payday Law: pay frequency, posted paydays, final pay, deductions, commissions, and wage statements.

The Texas Payday Law is enforced one wage claim at a time — and each claim audits you. When a former employee files with the TWC over a held check or a disputed commission, the examiner isn't just looking at that check: pay frequency, posted paydays, deduction authorizations, and written agreements all come into view. Employers routinely lose claims over practices they didn't know were practices.

This audit covers the seven sections that decide claims: pay frequency (nonexempt employees must be paid at least semi-monthly — monthly payroll is a violation hiding in plain sight), the payday posting requirement, wage statements, the 6-day final pay rule, written deduction authorizations, commission and bonus agreements, and claim-response readiness including the 4-year record window.

Who should use this compliance audit

  • Texas employers who have never self-audited payroll practices
  • Bookkeepers and office managers who inherited payroll
  • Businesses that just received — or just lost — a TWC wage claim
  • Anyone paying commissions on a handshake

What it helps prevent

  • TWC wage claims with administrative penalties on top
  • Semi-monthly schedules quietly unlawful for nonexempt staff
  • Final pay deadline violations at every separation
  • Deduction practices with no written authorization behind them
  • Commission disputes decided by whoever wrote nothing down

What’s inside

  • Section 1 — Pay Frequency
  • Section 2 — Payday Notice and Posting
  • Section 3 — Payment Method and Wage Statements
  • Section 4 — Final Pay
  • Section 5 — Deductions
  • Section 6 — Commissions and Bonuses
  • Section 7 — Claim Response Readiness

Before you process payroll, terminate, classify, deduct, or respond to a claim, get the decision reviewed.

Faulkner HR Solutions helps Texas employers, nonprofits, municipalities, and growing businesses fix the people systems behind recurring workplace problems. If this resource raised a risk flag, do not guess your way through the next step.

Frequently asked questions

How often does Texas require employees to be paid?
Employees not exempt under the FLSA must be paid at least twice a month, on designated paydays with the periods as equal as practicable; exempt employees at least monthly. Monthly payroll for hourly staff is one of the most common quiet violations in small Texas businesses.
Do we really have to post our paydays?
Yes — the Payday Law requires paydays to be posted conspicuously, and if none are designated, the law defaults them to the 1st and 15th. It's the requirement employers most often learn about from a claim examiner.
Are verbal commission agreements enforceable?
TWC decides commission claims on the agreement's terms — and with a verbal agreement, that becomes a credibility contest about what 'earned' meant. Written terms covering rate, earning conditions, payment timing, and separation treatment end most disputes before they start.
How far back can a Texas wage claim reach?
A TWC claim must be filed within 180 days of the wages being due, but related federal claims reach two to three years — and your records should cover at least four. The audit's readiness section confirms you can produce a complete pay history quickly.
Disclaimer. This resource is provided for general employer education and planning purposes. It is not legal advice and does not create an attorney-client relationship. Employment laws, agency guidance, and local requirements may change. Employers should review the facts of each situation before acting and consult appropriate HR or legal counsel when needed.