Texas Workforce Commission Severance Pay Laws

In Texas, final compensation policies and practices are regulated by the state’s Payday Law. Among other things, the law instructs employers and employees on their rights after an employee leaves employment. In cases in which an employee is fired, discharged, laid off, or involved in any other involuntary separation, they are due their pay within six calendar days. In instances in which the employee leaves voluntarily, such as by quitting or retiring, they are due their final pay on the next regularly scheduled payday.

Texas Severance Pay

Under the Texas Payday Law, Texas employers are not required to provide their employees with severance pay, although many employers do provide this or may be required to provide this for a multitude of reasons, such as provisions in Texas employment contracts.

Severance pay is a type of compensation that some companies offer when employees are terminated due to no fault of their own. This is usually applicable in situations in which an employee has worked at a particular job for some length of time or in a certain position and has been let go. Generally, employers use a set formula to determine when an employer will be due severance pay. The theory behind severance pay is to compensate the employee for the lack of advance notice of their termination. Although the Fair Labor Standards Act (FLSA) does not mandate severance pay, many Texas employers offer this type of compensation.

Monetary compensation is not the only type of compensation that employers may include in their severance package. Some employers will allow other benefits to continue past the termination of employment. For example, employers may allow employees to continue on the employer’s insurance for some length of time. Furthermore, employers may decline to contest an employee’s claim for unemployment compensation.

Even though the FLSA does not mandate this type of compensation, there are many instances in which a Texas employer may be required to provide it. First, Texas employers that include severance pay in their written contracts will be required to provide this type of compensation. Another situation in which severance pay may be required is when a policy is contained in an employee personnel handbook. Moreover, if the employer has a history of providing these packages to certain employees, an employer may be required to provide it to all similarly situated employees. Generally, Texas Payday Laws may only be enforced if they are in writing, but there are other situations in which an oral promise may be enforceable. It is important that individuals wishing to recoup severance pay contact a Texas employment attorney to discuss their specific case.

Have You Been Fired?

If you have been involuntarily terminated or let go from your Texas employer, you should contact an attorney at the Texas employment law firm of Rob Wiley, P.C. The attorneys at the firm have many years of experience handling complex legal issues and helping clients understand their rights and remedies after being terminated. Even if you have been let go, you may be entitled to some form of compensation from your employer. Contact the law firm of Rob Wiley to discuss the compensation that you may be entitled to receive. Schedule your free initial consultation at 214-528-6500 or toll-free at 800-313-4020.

More Blog Posts:

#MeToo Movement Emboldens Victims of Sexual Harassment in the Workplace, Dallas Employment Lawyer Blog, May 31, 2018.

How a Texas Employee Can Prove a Case of Employment Discrimination, Dallas Employment Lawyer Blog, May 2, 2018.

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