WAGE AND HOUR DEMAND LETTER
State of Texas
Texas Payday Law and Fair Labor Standards Act Claims
[ATTORNEY/FIRM LETTERHEAD]
[Firm Name]
[Address Line 1]
[City, Texas ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[State Bar of Texas Number]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]
[Date]
[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]
Copy to:
[Company General Counsel, if known]
[Registered Agent, if different]
Re: Wage and Hour Violations - [Client Full Name]
[and All Similarly Situated Employees - if collective action contemplated]
Demand for Unpaid Wages Under Texas Payday Law and FLSA
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO TRE 408
Dear [Mr./Ms./Mx. Last Name]:
This firm has been retained by [Client Full Name] ("our client") to pursue claims for unpaid wages against [Company Legal Name] ("[Company Short Name]" or "the Company") arising from violations of the Texas Payday Law, Tex. Lab. Code Chapter 61, and the Fair Labor Standards Act ("FLSA"), 29 U.S.C. Section 201 et seq.
Please direct all further communications regarding this matter to our office.
I. TEXAS-SPECIFIC LEGAL FRAMEWORK
A. Applicable Wage and Hour Law
Texas follows the federal minimum wage and does not have a higher state minimum wage. However, the Texas Payday Law provides important protections regarding wage payment timing and methods. All overtime claims are governed by the FLSA.
Key Legal Framework:
| Category | Texas/Federal Requirement | Citation |
|---|---|---|
| Minimum Wage | $7.25/hour (follows federal) | Tex. Lab. Code Section 62.051 |
| Overtime | 1.5x regular rate after 40 hours/week | 29 U.S.C. Section 207 |
| Tipped Minimum | $2.13/hour (with tip credit) | 29 U.S.C. Section 203(m) |
| Pay Frequency (Exempt) | At least semi-monthly | Tex. Lab. Code Section 61.011 |
| Pay Frequency (Non-Exempt) | At least twice per month | Tex. Lab. Code Section 61.011 |
B. Statute of Limitations
| Claim Type | Limitations Period | Citation |
|---|---|---|
| Texas Payday Law (TWC claim) | 180 days | Tex. Lab. Code Section 61.051 |
| Texas Payday Law (civil action) | 2 years | Tex. Lab. Code Section 61.0825 |
| FLSA (standard) | 2 years | 29 U.S.C. Section 255(a) |
| FLSA (willful) | 3 years | 29 U.S.C. Section 255(a) |
| Breach of Contract | 4 years | Tex. Civ. Prac. & Rem. Code Section 16.004 |
C. Texas Wage Payment Requirements
Payment Timing Requirements (Tex. Lab. Code Section 61.011, 61.014):
| Situation | Requirement | Citation |
|---|---|---|
| Exempt employees | At least semi-monthly | Tex. Lab. Code Section 61.011 |
| Non-exempt employees | At least twice per month | Tex. Lab. Code Section 61.011 |
| Involuntary termination | Within 6 calendar days | Tex. Lab. Code Section 61.014 |
| Voluntary resignation | Next regular payday | Tex. Lab. Code Section 61.014 |
Payroll Deductions (Tex. Lab. Code Section 61.018):
- Written authorization required for deductions
- Must be signed before the pay period in which deduction is made
- Deductions cannot reduce wages below minimum wage
D. Enforcement Mechanisms
Administrative:
- Texas Workforce Commission (TWC)
- Wage and Hour Section
- File claim at twc.texas.gov
- 180-day limitations period for TWC claims
Private Right of Action (Tex. Lab. Code Section 61.0825):
- Direct lawsuit in state or federal court
- Available after TWC determination or instead of TWC claim
- Unpaid wages plus attorney's fees
- 2-year statute of limitations
E. Tip Credit Rules (Texas/Federal)
Texas follows federal tip credit rules:
| Requirement | Standard |
|---|---|
| Cash wage minimum | $2.13/hour |
| Tip credit maximum | $5.12/hour |
| Total must equal | $7.25/hour minimum |
| Notice required | Yes, before taking credit |
| Tip pooling | Valid only among customarily tipped employees |
| Employer tip retention | Prohibited |
II. INTRODUCTION AND SUMMARY OF CLAIMS
Our client was employed by [Company Short Name] as a [Job Title] from [Start Date] to [End Date / Present], working at [Work Location(s)] in Texas. During this employment, [Company Short Name] violated Texas and federal wage laws by:
[ ] Failing to pay the minimum wage of $7.25 per hour required under the FLSA
[ ] Failing to pay overtime compensation at 1.5 times the regular rate for hours worked over 40 per week
[ ] Misclassifying our client as exempt from overtime when [he/she/they] should have been classified as non-exempt
[ ] Misclassifying our client as an independent contractor when [he/she/they] was an employee entitled to wage protections
[ ] Failing to pay wages on regular paydays as required by Texas Payday Law
[ ] Failing to pay final wages within 6 days of involuntary termination
[ ] Failing to pay for all hours worked, including:
[ ] Off-the-clock work before/after shifts
[ ] Uncompensated meal periods during which work was performed
[ ] Time spent on required pre-shift or post-shift activities
[ ] Travel time that should have been compensated
[ ] Training time
[ ] Making unlawful deductions from wages without proper authorization
[ ] Unlawful tip pooling or tip credit violations
III. FACTUAL BACKGROUND
A. Employment Relationship
| Category | Details |
|---|---|
| Employee Name | [Client Full Name] |
| Job Title(s) | [Title(s)] |
| Dates of Employment | [Start Date] to [End Date / Present] |
| Work Location(s) | [Address(es) in Texas] |
| Primary Duties | [Describe job duties] |
| Rate of Pay | $[Amount] per [hour/week/year] |
| Classification | [Exempt / Non-Exempt / Independent Contractor] |
| Pay Frequency | [Weekly / Bi-weekly / Semi-monthly] |
| Supervisor(s) | [Name(s) and Title(s)] |
B. Hours Worked
Our client regularly worked the following schedule:
Typical Weekly Schedule:
| Day | Scheduled Hours | Actual Hours Worked | Unpaid Time |
|---|---|---|---|
| Monday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Tuesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Wednesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Thursday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Friday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Saturday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Sunday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Weekly Total | [X hours] | [X hours] | [X hours] |
Average overtime hours per week not compensated at 1.5x rate: [X hours]
C. Specific Wage Violations
[Detail specific violations as applicable - off-the-clock work, misclassification, tip violations, etc.]
IV. LEGAL ANALYSIS
A. Texas Payday Law Violations
1. Wage Payment Requirements (Tex. Lab. Code Section 61.011)
Texas requires employers to pay non-exempt employees at least twice per month on regularly scheduled paydays. [Describe any violation.]
2. Final Wage Payment (Tex. Lab. Code Section 61.014)
For involuntary terminations, all wages must be paid within 6 calendar days. For resignations, wages must be paid on the next regular payday. [Company Short Name] failed to comply by [describe violation].
3. Unauthorized Deductions (Tex. Lab. Code Section 61.018)
Employers may only deduct wages with written authorization signed before the pay period. [Describe any unlawful deduction.]
B. FLSA Violations
1. Enterprise Coverage
[Company Short Name] is subject to the FLSA because it is an enterprise engaged in commerce with annual gross sales of at least $500,000. 29 U.S.C. Section 203(s)(1)(A).
2. Individual Coverage
Alternatively, our client was individually engaged in interstate commerce because [describe activities affecting interstate commerce].
C. Minimum Wage Violation (29 U.S.C. Section 206)
The FLSA requires covered employers to pay employees at least $7.25 per hour for all hours worked. By [describe violation], [Company Short Name] failed to pay our client the minimum wage.
D. Overtime Violation (29 U.S.C. Section 207)
The FLSA requires employers to pay non-exempt employees overtime at a rate of 1.5 times the regular rate for all hours worked over 40 in a workweek.
Our client worked an average of [X hours] per week. [Company Short Name] failed to pay overtime compensation for an average of [X overtime hours] per week.
E. Willfulness
[Company Short Name]'s violations were willful under McLaughlin v. Richland Shoe Co., 486 U.S. 128 (1988), as demonstrated by:
- [Evidence of willfulness]
V. DAMAGES CALCULATION
A. Texas and FLSA Damages
Relevant Period: [Start Date - 3 years prior to anticipated filing] to [End Date / Present]
Total Weeks in Period: [X weeks]
1. Unpaid Overtime
| Period | Avg. OT Hours/Week | Regular Rate | OT Rate (1.5x) | Unpaid OT/Week | Weeks | Total |
|---|---|---|---|---|---|---|
| [Period 1] | [X] | $[X.XX] | $[X.XX] | $[X.XX] | [X] | $[Amount] |
| Unpaid Overtime Subtotal | $[Amount] |
2. Unpaid Minimum Wage
| Period | Hours Below MW | Shortfall/Hour | Weeks | Total |
|---|---|---|---|---|
| [Period] | [X] | $[X.XX] | [X] | $[Amount] |
| Minimum Wage Subtotal | $[Amount] |
3. Off-the-Clock Work
| Activity | Hours/Week | Rate | Weeks | Total |
|---|---|---|---|---|
| [Pre-shift work] | [X] | $[X.XX] | [X] | $[Amount] |
| Off-the-Clock Subtotal | $[Amount] |
B. Summary of Damages
| Category | Amount |
|---|---|
| Unpaid Wages (Texas Payday Law & FLSA) | $[Amount] |
| FLSA Liquidated Damages (Equal Amount) | $[Amount] |
| Pre-Judgment Interest | $[Amount] |
| Attorney's Fees (estimated) | $[Amount] |
| Costs (estimated) | $[Amount] |
| TOTAL INDIVIDUAL DAMAGES | $[Amount] |
C. Collective Action Exposure
If this case proceeds as an FLSA collective action:
| Category | Individual | Estimated Class Size | Total Exposure |
|---|---|---|---|
| Unpaid Wages | $[Amount] | [X employees] | $[Amount] |
| Liquidated Damages | $[Amount] | [X employees] | $[Amount] |
| Collective Exposure | $[Amount] |
VI. SETTLEMENT DEMAND
Based on the foregoing, we demand that [Company Short Name] pay $[Settlement Demand Amount] to settle all claims of [Client Full Name].
This demand includes:
- Unpaid wages
- Liquidated damages
- Pre-judgment interest
- Attorney's fees and costs incurred to date
This demand will remain open for twenty-one (21) days from the date of this letter, expiring on [Response Deadline Date].
VII. RESPONSE AND LITIGATION
If we do not receive a satisfactory response by the deadline, we will file suit in:
[ ] Texas District Court, [County] County
[ ] United States District Court for the Northern District of Texas
[ ] United States District Court for the Southern District of Texas
[ ] United States District Court for the Eastern District of Texas
[ ] United States District Court for the Western District of Texas
The Complaint will seek:
1. Unpaid wages under Texas Payday Law and FLSA
2. Unpaid overtime under 29 U.S.C. Section 207
3. Liquidated damages under 29 U.S.C. Section 216(b)
4. Attorney's fees and costs under Tex. Lab. Code Section 61.0825 and 29 U.S.C. Section 216(b)
5. Certification as a collective action under 29 U.S.C. Section 216(b)
VIII. DOCUMENT PRESERVATION
LITIGATION HOLD NOTICE
[Company Short Name] must immediately preserve all documents and ESI relevant to these claims, including:
[ ] Time and attendance records
[ ] Payroll records and pay stubs
[ ] Personnel files and job descriptions
[ ] Employee handbooks and policies
[ ] Scheduling records
[ ] Communications regarding pay practices
[ ] Training materials
[ ] Prior TWC or DOL investigations
[ ] Tip records (if applicable)
Spoliation of evidence will result in severe sanctions.
IX. CONFIDENTIALITY
This letter is a confidential settlement communication protected under Texas Rule of Evidence 408 and applicable evidentiary privileges.
We look forward to your prompt response.
Sincerely,
[Attorney Name]
[Title]
[Firm Name]
[State Bar of Texas No.]
Enclosures:
[ ] Authorization to Represent
[ ] Pay stubs / wage statements (sample)
[ ] Time records (if available)
cc: [Client Name] (via email)
TEXAS-SPECIFIC PRACTICE NOTES
[ ] Federal Minimum Wage Only: Texas follows federal $7.25/hour minimum; no higher state minimum
[ ] 6-Day Final Pay Rule: Involuntarily terminated employees must receive final wages within 6 calendar days
[ ] TWC Claims: Texas Workforce Commission handles wage claims; 180-day deadline for filing
- Website: twc.texas.gov
- Phone: (800) 832-9243
[ ] Private Action Alternative: Tex. Lab. Code Section 61.0825 allows private lawsuits with 2-year SOL
[ ] No State Overtime Law: Texas relies entirely on FLSA for overtime requirements
[ ] At-Will Employment: Texas is a strong at-will employment state; Sabine Pilot exception for illegal conduct
[ ] Federal Court Venue:
- Northern District (Dallas, Fort Worth): North Texas
- Southern District (Houston): Southeast Texas
- Eastern District (Tyler, Beaumont): East Texas
- Western District (San Antonio, Austin, El Paso): West/Central Texas
[ ] Oil Field/Energy Workers: Special rules may apply; fluctuating workweek issues common
[ ] Day Rate Workers: Common in Texas; may violate overtime requirements
[ ] Independent Contractor Issues: Misclassification common in construction, oil & gas, trucking industries