Can My Texas Employer Reclaim My Bonus? What You Need to Know
By Team SalaryCalculate · 7/22/2025
If you've received a bonus from your Texas employer—especially a big one—it’s natural to wonder: can they take it back?
The short answer is, not usually. In Texas, bonuses are considered “wages” under the Texas Payday Law once they’re earned. That means if your employer promised you a bonus and you met the conditions, they can’t legally withhold or reclaim it without a written agreement saying they can. But there are exceptions. If the bonus was tied to your continued employment or certain conditions—and you didn’t meet them—your employer might have a case.
The type of bonus also matters. For example, a sign-on bonus may have different rules than a performance bonus. And if you quit or get fired right after payday, that can complicate things too.
This article will explain when bonuses are protected, when they’re not, and what Texas law actually says. We'll also show examples, clarify misunderstandings, and walk through helpful tools like the Texas net salary calculator so you can see what you really took home after taxes.
What Makes a Bonus “Earned” in Texas?
Under the Texas Payday Law, wages include bonuses if:
They’re promised in writing or policy
You meet all the terms set by your employer
The bonus is measurable and owed based on performance, longevity, or agreement
If those boxes are checked, the bonus is yours—period.
But if the bonus was discretionary, meaning your employer decided to give it without any promise or clear formula, they have more freedom to withhold or even ask for it back.
| Bonus Type | Can Employer Reclaim It? | Typical Conditions |
| Performance Bonus | Rarely, if earned and conditions met | Hitting a sales target or completing a project |
| Sign-On Bonus | Yes, if contract allows clawback | Often tied to staying employed for a set period |
| Retention Bonus | Yes, if you leave early or break agreement | Usually tied to completing a future milestone or time period |
| Discretionary Bonus | Possibly, if not earned or not documented | Given at employer’s sole discretion, not performance-based |
Real Example: A Sales Bonus Dispute
Let’s say Jamie was promised a $5,000 bonus for hitting $150,000 in quarterly sales. She hits $155,000. Two weeks later, she puts in her two-week notice. Her employer says she’s not “eligible” for the bonus because she’s leaving.
If that promise was made in writing or in a clear policy—like an employee handbook—the employer may not be allowed to revoke it. If Jamie already met the target, the bonus is hers. That’s how the Texas Workforce Commission tends to interpret “earned” bonuses.
But if the employer only discussed the bonus verbally and didn’t follow up in writing, Jamie might face an uphill battle.
Sign-On Bonuses: A Special Case
Sign-on bonuses often come with strings attached. If you’re given $10,000 on day one and the contract says you have to stay 12 months—or repay it—you’re legally bound by that deal.
Employers often add clawback clauses, which say you must return the money if you:
Leave voluntarily within a set time
Are fired for cause
Don’t complete training or licensing requirements
Before accepting a sign-on offer, always read the fine print. This breakdown of sign-on vs performance bonus explains how they're taxed and treated differently.
What Happens If You Leave Your Job?
Leaving your job doesn’t always mean you lose your bonus.
If you earned it before quitting: You should still be paid
If the bonus was for future work: Your employer may not owe it
If your contract has a repayment clause: You might have to pay it back
Let’s go back to Jamie. If she had received her bonus before giving notice and there was no repayment clause in her offer letter, her employer likely can’t take it back—even if they’re frustrated she’s leaving.
What If the Bonus Was Paid by Mistake?
Sometimes employers overpay or miscalculate. If they accidentally paid you $10,000 instead of $1,000, they can legally recover that overpayment in Texas.
But it can’t come out of future paychecks without your written permission. The Texas Workforce Commission is strict on this: unauthorized deductions from wages—even to fix an error—can violate state law.
What to Do If Your Bonus Was Withheld or Reclaimed
Check your offer letter or bonus agreement. Does it spell out terms or repayment rules?
Look at your company policies. Some handbooks describe how bonuses are earned or paid.
Save all emails or documentation. If there was a promise made in writing, that matters.
Contact HR first. Often, these issues are just miscommunication.
Still no luck? You can file a wage claim with the Texas Workforce Commission at twc.texas.gov.
FAQ: Bonus Clawbacks in Texas
Q: Can my employer take back a bonus they already paid me?
A: Only if there was a signed agreement allowing it—like a clawback clause—or if the bonus was paid by mistake.
Q: I didn’t get a promised bonus. What can I do?
A: If it was promised in writing and you met the terms, you may file a wage claim with the Texas Workforce Commission.
Q: Do I have to return a sign-on bonus if I quit?
A: If you signed something that says you will, then yes.
Q: Will taxes be refunded if I return a bonus?
A: Not automatically. You may need to wait until tax season and adjust it through your federal return.
Tax Impact: Keep More of What You Earn
Remember, bonuses are taxed differently than regular wages. They're often withheld at a flat rate—currently 22% for federal income tax as of 2025—plus Medicare, Social Security, and state-specific rules (in Texas, there’s no state income tax).
To see the full effect on your paycheck, run the numbers with the Texas net salary calculator. It'll show what your real take-home pay looks like after a bonus hits your account.
Bottom Line
Texas employers can’t just take back bonuses on a whim. If your bonus was earned—because you hit a goal, stayed long enough, or met the conditions in writing—it’s yours. But if it was conditional or tied to future employment, read the fine print. Sign-on bonuses, especially, often come with strings.
Always save documentation, ask questions, and get terms in writing. You work hard—make sure you keep what you earned.
