By Carona S.B. No. 777
75R2285 JMM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the authorization of certain deductions from an
1-3 employee's pay.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 61.018, Labor Code, is amended to read as
1-6 follows:
1-7 Sec. 61.018. DEDUCTION FROM WAGES. An employer may not
1-8 withhold or divert any part of an employee's wages unless the
1-9 employer:
1-10 (1) is ordered to do so by a court of competent
1-11 jurisdiction;
1-12 (2) is authorized to do so by state or federal law;
1-13 [or]
1-14 (3) has written authorization from the employee to
1-15 deduct part of the wages for a lawful purpose; or
1-16 (4) is authorized to do so for reimbursement under
1-17 Section 61.0185.
1-18 SECTION 2. Subchapter B, Chapter 61, Labor Code, is amended
1-19 by adding Section 61.0185 to read as follows:
1-20 Sec. 61.0185. WAGE DEDUCTIONS TO REIMBURSE EMPLOYER. (a)
1-21 An employer may withhold from any part of an employee's wages
1-22 without written authorization from the employee a sum of money
1-23 equal to the amount necessary to reimburse the employer for:
1-24 (1) theft, embezzlement, or other misappropriation by
2-1 the employee in which the employee received money from the employer
2-2 without authorization;
2-3 (2) the overpayment of wages or another form of pay to
2-4 the employee regardless of the reason for the overpayment;
2-5 (3) a loan made by the employer to the employee; or
2-6 (4) a wage advance from the employer to the employee.
2-7 (b) An employer may show that a deduction from wages under
2-8 Subsection (a) is permitted by providing evidence including:
2-9 (1) written documentation;
2-10 (2) audio or video recordings; or
2-11 (3) testimony given under oath by a person having
2-12 direct knowledge of the circumstances under which the employee
2-13 obtained the funds in question.
2-14 (c) A deduction from wages to reimburse an employer for a
2-15 loan or wage advance shall be permitted according to the terms of
2-16 any agreement between the employer and employee regarding repayment
2-17 of the loan or advance. A loan for which the repayment period
2-18 exceeds one year must be evidenced by a written repayment agreement
2-19 signed by the employee or a person legally authorized to sign for
2-20 the employee.
2-21 (d) Unless a written agreement provides otherwise, an
2-22 employer may deduct from an employee's final paycheck the amount
2-23 of the loan or advance that is unpaid on the employee's separation
2-24 date.
2-25 SECTION 3. Subchapter B, Chapter 61, Labor Code, is amended
2-26 by adding Section 61.0186 to read as follows:
2-27 Sec. 61.0186. IMPLIED AUTHORIZATION TO DEDUCT FOR CERTAIN
3-1 BENEFITS. (a) An employee who fails to give written authorization
3-2 for an employer to make an otherwise lawful deduction from part of
3-3 the employee's wages of an amount equal to the value of a benefit
3-4 from the employer is considered to have given the required
3-5 authorization if the employee:
3-6 (1) retains or does not waive the benefit; and
3-7 (2) remains in the employer's employment following a
3-8 request by the employer for authorization to make the deduction.
3-9 (b) In this section, "benefit" means anything of monetary
3-10 value, other than compensation for personal services, that an
3-11 employee receives from an employer or elects to use by virtue of
3-12 the employee's employment by the employer, including goods,
3-13 services, and expenses not covered by an expense reimbursement
3-14 agreement.
3-15 SECTION 4. This Act takes effect September 1, 1997, and
3-16 applies only to a claim for wages that arises on or after that
3-17 date. A claim for wages that arises before the effective date of
3-18 this Act is governed by the law in effect on the date the claim
3-19 arises, and the former law is continued in effect for that purpose.
3-20 SECTION 5. The importance of this legislation and the
3-21 crowded condition of the calendars in both houses create an
3-22 emergency and an imperative public necessity that the
3-23 constitutional rule requiring bills to be read on three several
3-24 days in each house be suspended, and this rule is hereby suspended.