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Updates from the Office of the Commissioner Representing Employers





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Banner for the August 2025 edition of Texas Business Today




Texas Employers,

Welcome to the August issue of "Texas Business Today! "

We recently hosted the Texas Intern Network: Ready, Set, Hired! Conference on National Intern Day, and I had a great time meeting an impressive group of motivated students. If these young individuals are representative of our emerging workforce, your future talent pipeline will be well equipped.

I want to thank every employer who not only attended and offered their expertise to students, but also those who shared the invitation and promoted the many benefits of offering internships. In doing so, you helped build a launchpad for their career exploration and economic success.  

The Office of the Commissioner Representing Employers welcomed two interns this summer, and I can’t say enough about their work ethic, curiosity, and willingness to learn. Anytime I meet a student, I encourage them to ask questions and not to be afraid to admit they don’t know the answer. That’s a skill, and it reflects one of the many employability and workforce readiness skills we address through Texas Workforce Commission programs.

As the summer comes to an end, and with bittersweet sentiment, we announce the end of an era with our Senior Legal Counsel Tommy Simmons. Tommy will retire at the end of August and will be dearly missed by thousands of employers across the state. If you didn’t know, Tommy wrote the Texas Guidebook for Employers [ [link removed] ], which has served as a wealth of knowledge and first line of defense for employers to strengthen and protect their business. After serving the public for nearly 40 years, Tommy truly exemplifies the term "public servant. "We wish Tommy the best in his next chapter and hope you will do the same.

- Joe Esparza, Commissioner Representing Employers

Commissioner Esparza Updated Email Signature
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Texas Business Minute
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2025 Texas Conference for Employers

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Photo of Mario Hernandez legal counselor to Commissioner Joe Esparza
What is Post-Separation Pay?

By: Mario Hernandez

"Legal Counsel to Commissioner Joe Esparza "

There are various types of payments that employers can make to former employees after they have separated from the company. This article will explore three types of post-separation pay: severance pay, wages in lieu of notice, and accrued leave payouts.

_Severance Pay

_Severance pay is payment that the employer has obligated itself to provide pursuant to its own severance pay policy or agreement. Generally, severance pay is payment that an employer provides to a former employee and is tied to certain types of characteristics such as length of service with the company. Severance pay can be paid in a lump sum or over time in installments – pursuant to the employer’s severance pay policy or agreement. For more information, please visit the following link: [link removed].

In addition, severance pay can affect an unemployment claim. For more information on this, please visit the following link (in particular, Item f): [link removed].

_Wages in lieu of notice

_Wages in lieu of notice is a type of post-separation payment that the employer is not obligated to provide to a discharged employee but does so to compensate for not giving advanced notice of the job separation. This type of payment is generally not accompanied by any terms or conditions for receipt. Wages in lieu of notice have sometimes been described as money that an employer provides to a former employee in order to help them while they are looking for a new job.

Like severance pay, wages in lieu of notice can have an effect on an unemployment claim. For more information on this, please visit the following link (in particular, Item f): [link removed].



picture of money exchanging hands

_Accrued Leave Payouts

_A common question employers have deals with whether they are required to pay out any accrued leave balances a former employee might have when they are separated from employment. The answer depends on the employer’s written policy or agreement on accrued leave.

If the policy or agreement states that it will not pay out accrued leave upon the employee’s separation, or if the policy or agreement is silent on the matter, the employer would not be obligated under the Texas Payday Law to provide the payment.

On the other hand, if the employer’s written accrued leave policy or agreement does state that the accrued leave will be paid, then the employer must follow its policy or agreement and pay the accrued leave. This is important because the terms of the written policy or agreement would be enforceable under the Texas Payday Law. Please visit the following links for more information on accrued leave payouts: [link removed]

[link removed].

_Conclusion

_Employers sometimes provide post-separation pay as part of their policies and procedures or to assist a former employee until they can find another job. By being familiar with different kinds of post-separation pay, an employer will have a better understanding of any potential obligations it might have with these types of payments.



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Updated Texas Employer Hotline

Texas Business Today is provided to employers free of charge

Texas Business Today is a monthly update devoted to a variety of topics of interest to Texas employers. The views and analyses presented herein do not necessarily represent the policies or the endorsement of the Texas Workforce Commission. Articles containing legal analyses or opinions are intended only as a discussion and overview of the topics presented. Such articles are not intended to be comprehensive legal analyses of every aspect of the topics discussed. Due to the general nature of the discussions provided, this information may not apply in each and every fact situation and should not be acted upon without specific legal advice based on the facts in a particular case.

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Connect with the Office of the Commissioner Representing Employers

Email: [email protected]
Mail: Commissioner Representing Employers
101 E. 15th St., Rm 630
Austin, TX 78778








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