We just fired a worker in Dallas and want to hold their final check until they return their laptop. They also have a signed 1099 agreement. Can we do this?

Texas Wage & Hour Compliance Issue Spotter Report

1. Executive Summary

Priority: HIGH. Texas Payday Law generally requires payment within 6 days of discharge. Holding wages for property return is a high-risk practice. 1099 status requires independent verification.

2. Jurisdiction

Work Location: Dallas, TX. Regime: Texas Payday Law (Chapter 61) applies to private employers.

3. Issue Matrix

| ID | Issue | Priority | Trigger | |---|---|---|---| | TX-16 | Final Pay Timing | HIGH | Discharge vs 6-day rule | | TX-01 | Classification | MEDIUM | 1099 label vs TWC 20-factor test | | TX-14 | Wage Deductions | HIGH | Holding check for property |

4. Analysis

Texas Labor Code Chapter 61 requires full payment by the 6th day after discharge. A signed 1099 agreement does not establish independent contractor status under the TWC direction-and-control framework. Final wages cannot be withheld pending property return without specific, lawful authorization that meets both state and federal kickback rules.