Fringe Benefits

Little known to many employers and employees, the Texas Payday Law includes in the definition of "wages" any fringe benefits promised in a written policy of the employer or in a written agreement (section 61.001(7)(B)). The types of fringe benefits covered by that provision are vacation pay, sick leave pay, parental leave pay, holiday pay, and severance pay. The good news is that the law will enforce such fringe benefit payments according to the terms of the written policy or agreement. For example, if there are conditions on use of leave or receipt of severance pay, those conditions will be observed. Thus, whatever the employer has taken care to provide in the policy or agreement is what will be enforced, assuming that the employer has put down exactly what it wants to happen under the policy.

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