Texas Assignment of Wages Due or to Become Due

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US-03924BG
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Description

An assignment of wages is the transfer of the right to collect wages from the wage earner to a creditor. The assignment of wages is usually effectuated by deducting from an employee's earnings the amount necessary to pay off a debt.

An assignment of wages should be contained in a separate written instrument, signed by the person who has earned or will earn the wages or salary. The assignment should include statements identifying the transaction to which the assignment relates, the personal status of the assignor, and a recital, where appropriate, that no other assignment or order exists in connection with the same transaction.

Many jurisdictions have enacted statutory provisions concerning wage assignments that prescribe various requisites of or conditions to the validity of assignments of wages. Compliance with these statutes is essential to make such assignments effective.

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FAQ

Employers in Texas are under no statutory obligation to honor voluntary wage assignments (see Reef v. Mills Novelty Co., 126 Tex.

If your employer has not paid you wages you are owed, you can file a wage claim with the Texas Employment Commission.

In Texas, employees with minimum wage or overtime claims can collect an additional sum called "liquidated damages." Liquidated damages are intended to compensate you for the delay in payment of your wages. You can collect 100% of your unpaid wages as liquidated damages.

Although the statute does not provide a specific penalty for late wage payments, it does provide an administrative penalty for a bad-faith failure to pay wages according to the law. The statute limits the administrative penalty to $1000, or the amount in dispute, whichever is less.

If you don't want the deduction, you can send your employer and creditor a written notice that you want to stop the wage assignment. You will still owe the money, but your lender must use other methods to collect the funds.

If you have questions or need assistance completing your wage claim, call the TWC Labor Law Section at 800-832-9243 or 512-475-2670.

Working under the table, often referred to as unreported employment, means working for cash without records. Cash is harder to trace. Paying cash under the table for the purpose of tax evasion is illegal.

Salary due is the amount of salary payable for a particular period but the related services corresponding to the amount of salary payable have already been availed by the business entity. It is also known as salary outstanding. It is a liability for the business entity.

An employee who believes they have not been paid all wages earned may submit a wage claim with TWC no later than 180 days after the date the claimed wages originally became due for payment. If part of your unpaid wages were due within 180 days, submit a claim only for that part.

Going to Court There is an important time limit for court claims: you only have 6 years from the date that the amount became due and payable to you to claim in a court for unpaid entitlements.

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Texas Assignment of Wages Due or to Become Due