40 Tex. Admin. Code § 821.28

Current through Reg. 49, No. 49; December 6, 2024
Section 821.28 - Deductions
(a) The Commission provides the following guidance in determining whether an employer is entitled to withhold or divert wages under court order, by law or with written authorization under §61.018 of the Act:
(1) A court is presumed to be a court of competent jurisdiction with respect to issuing court orders. The burden shall be on the party opposing a court order to challenge the court's authority by appealing to the issuing court or court of appropriate review as the Commission will presume full faith and credit applies to court orders.
(2) State or federal law includes statutes and codes enacted by Congress or the Texas Legislature, rules promulgated by a Texas or federal agency, and regulations promulgated by a Texas or federal agency.
(3) A lawful purpose is one that is authorized, sanctioned, or not forbidden, by law.
(b) Written authorization for deductions shall be specific as to the lawful purpose for which the employee has accepted the responsibility or liability. Written authorizations shall be:
(1) sufficient to give the employee a reasonable expectation of the amount to be withheld from pay; and
(2) a clear indication that the deduction is to be withheld from wages.
(c) If an employer uses a handbook, policy manual or other similar document instead of a separate writing, the employee's signed acknowledgment of receipt of company policies can be authorization to withhold wages if the acknowledgment meets the requirements of subsection (b) of this section and specifically informs the employee of the deduction. The signed acknowledgment of receipt shall also include language that states that the employee agrees to abide by or be bound to the authorization for deduction.
(d) The employer shall ensure that properly withheld wages are applied toward their authorized purpose. Properly withheld wages not applied toward their authorized purpose will be considered unlawful deductions.
(e) The employer shall obtain written authorization as required under the Act to deduct credit card service charges from an employee's tips.

40 Tex. Admin. Code § 821.28

The provisions of this §821.28 adopted to be effective June 1, 1998, 23 TexReg 5732.