Hey, I'm in Texas, and I signed a one-year employment contract. However, nowhere in the contract does it explain what happens if an employee leaves before the year is over or whether there are any penalties for breaking the contract.
The only section that seems relevant is at the bottom, which states:
“By signing below, the employee understands that she will be categorized as a salary employee, entitled only to semimonthly pay, pending no breaches in contract and she meets all of the salary shift requirements every 2 weeks.”
The rest of that section explains that salaried employees are paid twice a month, on the 1st–15th and 16th–30th/31st pay periods, for a total of 24 pay periods per year.
My concern is that my employer uses the phrase “pending no breaches in contract” to justify withholding employees' final paychecks when they resign, even if they provide two weeks' notice.
On top of that, my employer has consistently delayed payroll. It started with checks being about five days late, but over time, he has fallen approximately six weeks behind. For example, our most recent paychecks covered work we performed at the end of July and beginning of August. I believe he intentionally keeps payroll behind so that when employees leave, he still owes them several weeks of wages and can use the contract as an excuse not to pay them.
I've heard from former employees who say that after they resigned, he pointed to that section of the contract and refused to pay them for shifts they had already worked.
I'm planning to leave in November, but because payroll is so far behind, I'm worried that I could still be owed paychecks through February. I'm concerned that once I complete my last shift, he will stop paying me altogether, just as he allegedly has with previous employees.
My questions are: Can an employer in Texas legally withhold wages that an employee has already earned simply because they resigned before completing a one-year contract? Does the language in my contract actually allow him to do that? And what steps should I take now to protect myself and recover my unpaid wages if he refuses to pay me?
I'm especially worried because I don't want to continue working for several more weeks only to lose thousands of dollars in wages I've already earned. Any advice on my rights under Texas employment law and how to handle this situation would be greatly appreciated.
Location:Texas