In Texas and most states, an employer cannot deduct anything (except taxes) from an employee’s paycheck without written authorization from the employee. I often see this rule violated when it comes to salary advances. If you ever want to be repaid for a salary advance, use this or a similar form to get a very clear statement from the employee about your rights to make deductions from his paycheck
Otherwise, just think of your salary advance as a gift! If your employee quit tomorrow, there would be no way to require repayment if you don’t have a written agreement. And you would not be allowed by the Texas Payday Law to withhold what is owed to you from the employee’s final paycheck unless you have a written authorization signed by the employee.
Here is an easy form you can adapt for salary advances:
Advance on Wages
Name of Employee: ________________________ Date: ________________
I, ____________________ (Employee) request an advance payment of $____________ (amount) on my wages that I otherwise would receive on the payroll date of ________ ___, 20__. If this request is approved, I would like to receive this advance by __________________ (date).
I agree to repay this advance through either: 1) one payroll deduction to be made from the first pay period immediately following the pay period from which this advance is made; or 2) from ___ equal deductions from the next ___ pay periods immediately following the pay period from which this advance is made.
I also agree that if I terminate employment prior to total repayment of this advance, I authorize the company to deduct any unpaid advance amount from any wages/salary owed me at the time of termination of employment.
Employee Signature: ________________________ Date: ____________
Signature of Supervisor: _______________________ Date: _____________