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Texas: Consolidate Paychecks?

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  • Texas: Consolidate Paychecks?

    I work for a small company (15 employees). We have a couple of teenagers that work here part-time. During the off season, they may work only one or two days in the pay period. Since these two boys do not have a bank account, they have to take their paycheck to a check cashing place. I was asked if it were possible to NOT generate a check every payday (we pay every 2 weeks), but to consolidate each individual's checks based on value or time or some other criteria. Apparently, cashing a check is expensive.

    I know the law says I have to pay them at least twice per month (they are non-exempt, hourly, minimum wage). But if the employee ASKS me to hold their pay, is it legal to do so? Of course, I would get it in writing. Their father is a full-time employee here, so I won't be getting trouble from the parents.

    Their checks are almost always less than $200 (after taxes), and can be below $100 during our slow season. I don't mind working with them, if I can figure out how to handle it without too much extra work on my part; and as long as I'm not putting the company in jeopardy with the government (State or Federal).

  • #2
    I believe Texas requires at least twice a month pay. The obvious answer is for the kids to get bank accounts. If they can't get a checking account yet, they can get a savings.


    • #3
      But if the employee ASKS me to hold their pay, is it legal to do so?

      No. The employee cannot authorize you to violate the law.


      • #4
        Yeah, I was pretty sure it would not be allowed.

        I'm going to ask our bank if they allow non-account holders to cash checks without a fee. Or suggest a prepaid-reloadable card.

        I guess I could let them "cash" their checks out of Petty Cash.