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Texas Payday Law Deduction Summary

 

Required by Law - no authorization needed:

  1. Court-ordered child support and alimony

  2. Guaranteed student loan wage attachment

  3. IRS tax levy

  4. Withholding tax

  5. FICA tax

  6. Any garnishments mandated by a federal court (such as in bankruptcy cases)

Allowed/Authorized by Law - Written Employee Authorization Needed:

  1. Child and spousal support administrative fees1, 2

  2. Student loan wage attachment administrative fee1, 2

  3. Meals, lodging, and other facilities1

  4. Voluntary wage assignments1

  5. Loans1

  6. Wage or salary advances1

  7. Vacation pay advances1

  8. Wage overpayments1

  9. Uniform and uniform cleaning costs1

  10. Union dues1

  11. Misappropriated cash1

  12. Any other deduction for a lawful purpose - examples:

    1. Store inventory sold to employees on credit - treat this as a loan and get a written repayment agreement from the employee

    2. Personal use of company equipment or accounts - if possible to do so in advance, treat this as a loan and get a written repayment agreement from the employee

    3. Damage or losses caused by the employee1

    4. Employee physicals and drug screens (minimum wage issue)1

    5. Non-work-related training paid for by the company - treat this as a loan and get a written repayment agreement from the employee; the same applies to education loans and relocation expenses advanced to an employee

    6. Employee's traffic tickets, bail, and court costs paid by the employer - before paying anything like this, the employer should get a written agreement from the employee to the effect that the payment is a loan or wage advance

1 See the discussions in "Deduction Problems under the Texas Payday Law" regarding restrictions on these types of deductions.
2 Written authorization recommended - see the discussion in the section of this article on "Deductions for Administrative Fees".

 

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