Texas Layoff laws & compensation compliance analysis

Texas Layoff: What you need to know

Texas follows the requirements of the federal Worker Adjustment and Retraining Notification Act (WARN Act). The WARN Act imposes restrictions on the way layoffs are handled. It is designed to give employees advance notice of a layoff in order to find another job or seek retraining in a new occupation and to give the state adequate preparation to assist the affected workers.
A comprehensive discussion of the WARN act is available.
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Employers must pay discharged employees any wages due no later than the 6th day after their discharge date (TX Lab. Code Sec. 61.014).
The Texas Shared Work program offers an alternative to employers facing a reduction in force. Instead of laying off employees, the employer reduces the hours of work each week among a specific group of employees. Wages lost to the worker as a result of reduced hours are supplemented by a partial unemployment benefit amount. To participate, employers must have a plan approved by the Texas Workforce Commission.
Employers can obtain more information by visiting http://www.twc.state.tx.us/ui.
Texas has implemented its version of the federal Workforce Investment Act , (now the Workforce Innovation and Opportunity Act), to assist employers and employees with training issues. The state law is very similar to the federal law.
To see a copy of the Texas plan, visit http://www.twc.state.tx.us.
The WARN Act requires employers to notify their state dislocated worker unit when layoffs occur. Employers in Texas should visit http://www.twc.state.tx.us for further details and contact information.
Last reviewed on November 10, 2016.

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