January 29, 2015 Andrea Diese
To: Bradley Stonefield
From: Atwood and Allen Consulting
Date: January 29, 2015
Subject: Employment law
Upon further review, Atwood and Allen have found a few employment laws that will affect your business while operating in the state of Texas.
The first law that we would like you to be aware of is the Texas Payday Law. It covers all Texas business entities regardless of size with exceptions for government. The Texas Payday Law requires that unless an employee agrees in writing to accept part or all of their wages in another form, wages must be paid in United States currency, a written instrument negotiable on demand at full face value for United States currency, or by electronic transfer of funds. Wages must also be delivered to employees at their regular place of work during working hours, mailed by registered mail or by direct deposit to be received by the employee no later than payday, by any reasonable means, or to any person authorized in writing by the employee.
An administrative penalty may be assessed against the employer equal to the wages claimed or $1,000, whichever is less. It is illegal for an employer to fail to pay wages after they are advised that wages are due. It is also unlawful to hire or continue to employ an employee with the intent of avoiding paying wages.
In addition to the Texas Payday Law, as a business entity operating in Texas, your business must also comply with the Texas Minimum Wage Act. The current Texas minimum wage is $7.25 per hour. Failure to comply with minimum wage law allows for an employee to sue an employer for the amount of the unpaid wages plus an additional equal amount as damages.
Additionally, since you will be employing more than 15 employees you are required to comply with Title VII of the Civil Rights Act of 1964. This law