Texas · Termination · Updated April 2026

Wage deductions need specific, signed, written authorization — before the deduction.

Under the Texas Payday Law, employers can only deduct from wages with prior written authorization from the worker — or where the deduction is required by law (taxes, court orders). A handbook policy is not authorization. A blanket onboarding form is sketchy. The authorization must be specific, signed, and predate the deduction. Most Texas wage-claim violations involve illegal deductions, not unpaid wages.

Authority
TX Lab. § 61.018
Form Required
Specific, signed, written
Below-Minimum Cap
Cannot violate FLSA
Active

Wage Deduction Authorization

Routes every non-statutory wage deduction through pre-existing written authorization. Blocks deductions without documented authorization. Verifies deductions don't push pay below the FLSA minimum.

Block deduction without prior written authorization
Block deduction that pushes pay below minimum
Surface authorization documentation for audit
Always running

What those rules do when a deduction is attempted.

The hero card configuration: two Blocks (no authorization, below-minimum) and one Flag for audit-readiness.

Block · on deduction without authorization

When payroll attempts a non-statutory wage deduction (anything beyond taxes and court orders), Teambridge verifies signed written authorization on file. Without it, the deduction fails. "Cannot deduct: no signed authorization for this purpose."

Block · on below-minimum deduction

Even with authorization, deductions cannot push the worker's pay below the FLSA minimum (other than statutory deductions). When a deduction would do so, the action fails.

Flag · authorization documentation surfaced

For every authorized deduction, the signed authorization document is linked to the timesheet entry. If TWC audits, the documentation is one click away.

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The rule, plainly stated

Specific, signed, before — not after.

The Texas Payday Law's deduction rule (§ 61.018 + Rule 821.28) is one of the most strict-construction wage rules in any state. A handbook does not authorize. A blanket form may not be specific enough. The authorization must predate the deduction.

Texas Labor Code § 61.018; 40 TAC § 821.28: An employer may not withhold or divert any part of an employee's wages unless the employer is ordered to do so by a court of competent jurisdiction; is authorized to do so by state or federal law; or has written authorization from the employee to deduct part of the wages for a lawful purpose.

Authorization must be specific

Rule 821.28(b) requires written authorization to be 'as specific as possible as to the amount and purpose of the deduction.' A blanket clause in a handbook ('the company may deduct for any debts owed') is insufficient. The authorization should specify the type of deduction (loan repayment, equipment damage, overpayment recovery), the maximum amount, and the conditions under which it applies.

Must predate the deduction

Authorization signed after the deduction occurred is not a defense. The signature must precede the deduction event. This catches employers who try to retroactively paper over an unauthorized deduction.

On autopilot

Teambridge gates every deduction at the source.

The deduction rule is where most Texas employers create wage-claim exposure unintentionally. Teambridge handles the gate so the question is answered before the deduction happens.

01 · Authorization vault

Per-worker, per-deduction-type records.

Each worker has an authorization vault listing every signed authorization, the deduction type covered, and the document URL. Authorizations have effective-date and (optional) expiration metadata.

02 · Deduction request gating

Real-time check against authorization.

When a deduction is requested in payroll (e.g., 'deduct $200 for damaged equipment'), Teambridge verifies a matching authorization exists. Without one, the deduction fails.

03 · Below-minimum check

FLSA floor enforced even with authorization.

Even with valid authorization, the deduction is verified against the FLSA minimum. If the post-deduction pay would fall below $7.25/hr × hours worked, the deduction is blocked.

04 · Audit-ready linkage

Documentation one click away.

Every deduction line on the worker's wage statement links to the underlying authorization document. If TWC audits, the documentation is immediately accessible.

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FAQ

People also ask.

What deductions are allowed without written authorization?
Statutory deductions only: federal/state income tax withholding, FICA (Social Security and Medicare), and court-ordered deductions like child support garnishments and IRS levies. Everything else requires written authorization from the worker.
Is a handbook policy enough?
No. A handbook clause that says 'the company may deduct for damages or shortages' is not specific authorization. The authorization must be a separate, signed document specifying the type, amount or method of calculating the amount, and conditions for the deduction.
Can I deduct for cash register shortages?
Only with prior, specific, written authorization from the worker — and the deduction cannot push pay below the federal minimum. Most TWC complaints over deductions involve cash shortages or property damage where no authorization existed.
Can I deduct for property the worker didn't return?
Only with prior written authorization. If the worker quit owing equipment and there's no authorization on file, you cannot offset the value from the final paycheck. You must pay the final paycheck on time and pursue the property through other means (small claims, civil action).
What about deductions for benefit premiums and retirement contributions?
Routine, predictable deductions for insurance premiums and retirement plan contributions can be covered by a blanket onboarding authorization that names the type and method of calculation. The clearer and more specific the authorization, the more defensible.
Can authorized deductions push pay below minimum wage?
No, except for statutory deductions (taxes, court orders). Even with valid worker authorization, non-statutory deductions cannot reduce the worker's effective pay below $7.25/hr for the hours worked. TWC treats this as a violation independent of whether authorization existed.
How does Teambridge enforce this?
Every deduction request routes through the authorization vault. Without a matching, signed, dated authorization, the deduction fails to save. Below-minimum checks run regardless of authorization status. Audit documentation is one click from the wage statement.