Final Paycheck

[Imagebuffet]

I got my final paycheck from my former employer, today. I worked 6.5 days on this pay period, plus had 9 days of vacation time. The company took out 33% of my final paycheck for taxes, then withheld my monthly withholding (even though my benefits end in 2 weeks).

How many laws did they just break? I know they broke this one, for certain:

Texas Labor Code § 61.014. PAYMENT AFTER TERMINATION OF EMPLOYMENT.
(a) An employer shall pay in full an employee who is discharged from
employment not later than the sixth day after the date the employee
is discharged.

March 2 through March 18 is a bit more than 6 days. I wasn't going to say anything if they had given me a 2-week severance pay, but they didn't. My gross final pay is my regular 2-weeks paycheck, which is what they owed me; then, they took out 33% for taxes, plus withholding.

[Jeff_Green]

Swallow it and move on. Seriously.

What they have done is minuscule in the grand scheme of things and you won't make much headway taking it to the state. If you do get somewhere it is a long slow process.

My last company still owes $4000 to me despite a lien being placed against the company by the state of Texas.

[Imagebuffet]

Originally Posted by Jeff_Green

Swallow it and move on. Seriously.

What they have done is minuscule in the grand scheme of things and you won't make much headway taking it to the state. If you do get somewhere it is a long slow process.

My last company still owes $4000 to me despite a lien being placed against the company by the state of Texas.

Wow, how do they get away with something like that? And, why should we put up with it?

[Jeff_Green]

Well, mine is a little different because the company pulled out of Texas and therefore had no assets in Texas to collect against. Not much you can do unless you want to invest more time and more money into going after them through the courts.

You will probably have more luck since the company still is around. Be prepared for it to take up to a year and an investment of your time in following everything through.

[toverman]

The last company I worked for full-time didn't grant us vacation in advance, we'd earn a certain number of days depending on how long we worked into the year. When I quit, I had already taken some vacation I hadn't earned, so they took it out of my last check. I never expected a final check until the regular pay period, which is when I got mine.

Make sure you know all your former company's policies, because some of something similar might be applying to you. Maybe not, but like Jeff said, it will take a lot of effort to right any wrongs.

[Imagebuffet]

Originally Posted by toverman

The last company I worked for full-time didn't grant us vacation in advance, we'd earn a certain number of days depending on how long we worked into the year.

I think that's the way that most companies do that. My last one does it that way, anyway.

Originally Posted by toverman

When I quit, I had already taken some vacation I hadn't earned, so they took it out of my last check.

I worked through Thanksgiving, Christmas and New Years holidays, and had saved up 9 days of vacation time.

Originally Posted by toverman

I never expected a final check until the regular pay period, which is when I got mine.

Under Texas law, if you quit, your paycheck is due by the next pay period. But, if you are fired, your paycheck is due within 6 days of your termination date.

Originally Posted by toverman

Make sure you know all your former company's policies, because some of something similar might be applying to you. Maybe not, but like Jeff said, it will take a lot of effort to right any wrongs.

Oh, no, they clearly broke the law on this issue.

[east_tx]

Richard,

I would suggest contacting the HR Department or someone in Payroll and (calmly) ask them if they can help explain the issue on the vacation. Most larger companies use a standard automated software program for tax deductions and depending on the company practices, some hold out benefit deductions in advance and some after the fact.

It appears that they did fall outside the bounds of issuing your final pay on time----you would be amazed how many companies do not even know the different state laws for issuing final pay. You could follow up and raise the issue and file a complaint, but would probably only result in loss of your time and possibly a penalty/fine being placed on the company-----but it may make you feel better.

Most companies pay accrued vacation when the employment relationship is terminated----however, most state pay laws do not require pay for accrued vacation---unless specifically stated in company policy.

I hope they end up paying you for your unused vacation and wish you the best of luck in the future.

[shamrock]

I've never heard of a company adhering to the 6 days rule. They always pay the final check on the regularly scheduled pay date.

Texas law doesn't require them to pay severance or accrued vacation, either, unless you have a contract or letter of termination to the contrary.

[L Stegall]

Here is a good overview of the Texas Payday Laws: Payday Law Summary

If you were not paid timely or think they paid you incorrectly, you can file a complaint with the Texas Workforce Commission. The rules for when you should get your last paycheck differ depending on whether you quit (next regularly scheduled payday) or were terminated (within 6 days of termination). Normal withholding should apply to even your last paycheck. Hope this is helpful.

[Westx]

Richard what they did is tax your vacation pay at a higher tax rate as it is treated as a bonus when they pay your for and it is legal. The company I work for let's us sell back vacation every year if we want to and when I did it the first time I was freaked out because then amount paid to me was less than what I thought is should have been based on what is normally take out of a weeks pay. I contacted our payroll department and also did some research and found out that that is the way it is handle when you are paid for your vacation.

[SpeedRacerSlots]

+1 for Westx.
When vacation is paid out lump sum, its treated most often like a cash bonus, which is just like cap.gains tax @ 33% (rounded).
Pretty much the norm.
If you decided to push your issue, all they would have to do most likely is to give you the intersest on your paycheck amount for the few days (logical guess on my part).

So +1 for what Jeff stated originally. Swallow it and say NEXT.

Dont know what line of work you were in, but good luck with the hunt!

[Imagebuffet]

Thanks, guys.

Apart from the fact that the law was made to reduce the frequency of companies running rough shod over employees, there is the matter that I was fired because I was held responsible for 5 deficiencies over the course of 8 months or so. Now, the company breaks the law, but nothing is going to happen to them for it. It just doesn't seem right.

I have every intention of writing to my elected officials about my main complaints regarding my former employer. I doubt there is much else I can do, but I strongly feel that what was done to me wasn't right.