What are the laws governing the payment of wages?
In Texas, employers are subject to the federal Fair Labor Standards Act (FLSA), which sets the minimum wage at $7.25 per hour and sets overtime pay requirements for non-exempt employees. Employers are also required to comply with Texas state laws, including the Texas Payday Law, which governs how frequently employers must pay their employees and the types of deductions they can make. Under the Texas Payday Law, employers must pay all employees at least twice a month on established payday schedules. If an employer pays its employees on a different basis, such as daily or weekly, those payments must still be made at least twice a month. Employers may make deductions from an employee’s wages for taxes, health benefits, and legally authorized debt collection purposes, but they may not deduct any amount that would reduce the employee’s wages to below the minimum wage. In Texas, the Equal Pay Act prohibits employers from paying unequal salaries to employees based on their gender, race, or other protected characteristics. Employers must also comply with the Texas Minimum Wage Act, which requires employers to pay nonexempt employees the minimum wage for all hours worked and any additional compensation, such as overtime pay, to which the employee is entitled. Finally, employers must also provide employees with notice of any changes in their rate of pay. Employers must keep accurate records of all wages paid, including information on how much each employee worked and the wages they earned. These records must be maintained and made available for inspection by the Texas Workforce Commission if requested.
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