texas wage assignment

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What Is Wage Assignment?

Definition and example of wage assignment, how wage assignment works, wage assignment vs. wage garnishment.

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A wage assignment is when creditors can take money directly from an employee’s paycheck to repay a debt.

Key Takeaways

• A wage assignment happens when money is taken from your paycheck by a creditor to repay a debt.
• Unlike a wage garnishment, a wage assignment can take place without a court order, and you have the right to cancel it at any time.
• Creditors can only take a portion of your earnings. The laws in your state will dictate how much of your take-home pay your lender can take.

A wage assignment is a voluntary agreement to let a lender take a portion of your paycheck each month to repay a debt. This process allows lenders to take a portion of your wages without taking you to court first.

Borrowers may agree to allow a lender to use wage assignments, for example, when they take out payday loans . The wage assignment can begin without a court order, although the laws about how much they can take from your paycheck vary by state.

For example, in West Virginia, wage assignments are only valid for one year and must be renewed annually. Creditors can only deduct up to 25% of an employee’s take-home pay, and the remaining 75% is exempt, including for an employee’s final paycheck.

If you agree to a wage assignment, that means you voluntarily agree to have money taken out of your paycheck each month to repay a debt.

State laws govern how soon a wage assignment can take place and how much of your paycheck a lender can take. For example, in Illinois, you must be at least 40 days behind on your loan payments before your lender can start a wage assignment. Under Illinois law, your creditor can only take up to 15% of your paycheck. The wage assignment is valid for up to three years after you signed the agreement.

Your creditor typically will send a Notice of Intent to Assign Wages by certified mail to you and your employer. From there, the creditor will send a demand letter to your employer with the total amount that’s in default.

You have the right to stop a wage assignment at any time, and you aren’t required to provide a reason why. If you don’t want the deduction, you can send your employer and creditor a written notice that you want to stop the wage assignment. You will still owe the money, but your lender must use other methods to collect the funds.

Research the laws in your state to see what percentage of your income your lender can take and for how long the agreement is valid.

Wage assignment and wage garnishment are often used interchangeably, but they aren’t the same thing. The main difference between the two is that wage assignments are voluntary while wage garnishments are involuntary. Here are some key differences:

Once you agree to a wage assignment, your lender can automatically take money from your paycheck. No court order is required first, but since the wage assignment is voluntary, you have the right to cancel it at any point.

Wage garnishments are the results of court orders, no matter whether you agree to them or not. If you want to reverse a wage garnishment, you typically have to go through a legal process to reverse the court judgment.

You can also stop many wage garnishments by filing for bankruptcy. And creditors aren’t usually allowed to garnish income from Social Security, disability, child support , or alimony. Ultimately, the laws in your state will dictate how much of your income you’re able to keep under a wage garnishment.

Creditors can’t garnish all of the money in your paycheck. Federal law limits the amount that can be garnished to 25% of the debtor’s disposable income. State laws may further limit how much of your income lenders can seize.

Illinois Legal Aid Online. “ Understanding Wage Assignment .” Accessed Feb. 8, 2022.

West Virginia Division of Labor. “ Wage Assignments / Authorized Payroll Deductions .” Accessed Feb. 8, 2022.

U.S. Department of Labor. “ Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA) .” Accessed Feb. 8, 2022.

Sacramento County Public Law Library. “ Exemptions from Enforcement of Judgments in California .” Accessed Feb. 8, 2022.

District Court of Maryland. “ Wage Garnishment .” Accessed Feb. 8, 2022.

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What Is a Wage Assignment?

How wage assignment works.

• Why Are Wage Assignments Voluntary?

Wage Garnishment

The bottom line.

• Credit & Debt
• Debt Management

Wage Assignment: What It Means, How It Works

Wage assignment is the act of taking money directly from an employee's paycheck in order to pay back a debt obligation. Such an automatic withholding plan may be used to pay back a variety of debt obligations, including back taxes, defaulted student loan debt, and both child and spousal support payments.

Key Takeaways

• A wage assignment takes funds directly from an employee's paycheck to pay back a debt.
• How wage assignments are regulated varies by state, with some states even allowing for voluntary child support agreements.
• A wage garnishment is an involuntary deduction and requires a court order.

Wage assignments are typically incurred for debts that have gone unpaid for a prolonged period of time. Employees may sometimes opt for a voluntary wage assignment to pay for things like union dues or to contribute to a retirement fund.

A wage assignment is processed as part of an employer's payroll procedure. The employee's paycheck is decreased by the amount of the assignment and noted on their pay stub.

A wage assignment is often a lender's last resort to receive repayment from a borrower who has previously failed to pay a debt obligation.

Wage assignments are a valuable tool for collecting unpaid debts, but unfortunately, they may be associated with abusive lending practices . If you're struggling with your debt, one of the best debt relief companies or credit counseling agencies may be able to help you get back on track before a wage assignment is incurred.

What Makes Wage Assignments Voluntary?

In a voluntary wage assignment, a worker essentially asks their employer to withhold a portion of their paycheck and send it to a creditor to pay off a debt. Loan agreements may sometimes include a voluntary wage assignment clause in their terms should the borrower default on their loan.

Payday lenders often include voluntary wage assignments into their loan agreements to better their chances of being repaid. Laws regarding wage assignments vary by state.

For example, in West Virginia, wage assignments are capped at 25% of a worker's take-home earnings, the employee and the employer must sign the agreement, and agreements must be renewed annually. Under Illinois law, a lender cannot resort to wage assignment until a debt is 40 days in default. The wage assignment cannot continue for more than three years, and the worker can stop the wage assignment at any time.

Involuntary wage deductions, known as wage garnishments , require a court order and are most likely to be employed to collect spousal and child support payments that have been ordered by a court. Wage garnishments may also be used to collect unpaid court fines or student loans that have been defaulted on.

Several states allow individuals to sign up for voluntary child support agreements. In such a case, both parents must agree to a plan. Once that happens, a voluntary wage assignment may begin. If a child support or welfare agency is involved, they would have to approve any plan.

How Long Can I Have a Wage Assignment?

Since wage assignments are voluntary, the length of time that you use one can vary. Some loans include a wage assignment agreement, so you'll have to check the language of your loan to determine your obligation. Each state also has its own regulations regarding wage assignments.

How Much of My Income Can Go to Wage Assignments?

Every state has its own regulations, but typically 15–25% of your disposable income can be designated for wage assignments.

Is Wage Garnishment the Same as Wage Assignment?

While they are similar, wage garnishment and assignment are not the same. Wage garnishment is an involuntary paycheck deduction, typically ordered to repay child support, student loans, tax debt, or bankruptcy. A wage assignment is voluntary and may be used to repay a consumer debt.

Wage assignments may be a useful tool to help you pay down a debt. Wage assignments are voluntary but they may be hidden in the fine print of some loan products, so read everything carefully before signing. Check the regulations in your state to determine if your wage assignment is revocable.

West Virginia Division of Labor. " Wage Payment and Collection (WPC) Act: Payroll Deductions and Wage Assignments ," Page 3.

Illinois General Assembly. " (740 ILCS 170/) Illinois Wage Assignment Act ."

U.S. Department of Labor. " Fact Sheet #30: The Federal Wage Garnishment Law, Consumer Credit Protection Act's Title III (CCPA) ."

Illinois Legal Aid. " Understanding Wage Assignment ."

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Wage Assignment

Wage assignment refers to a legal process where child support payments are automatically deducted from the paying parent’s wages or income and forwarded to the receiving parent or the state child support enforcement agency. It is a mechanism designed to ensure timely and consistent payment of child support obligations, reducing the risk of delinquency and providing financial support for the child’s needs.

What Is Wage Assignment?

In Texas, wage assignment, also known as income withholding, is a common method used to enforce child support orders. Child support payments are automatically deducted from the paying parent’s wages or income. This helps streamline the payment process and reduce the risk of non-payment or delinquency.

Wage Assignment in Texas Child Support

Here’s how wage assignment works in Texas.

Court Order for Wage Assignment

When a child support order is established or modified, the court may include provisions for wage assignment as part of the order. The court orders the paying parent’s employer to deduct a specified amount of child support from the parent’s wages or income and send it directly to the state child support enforcement agency or the receiving parent.

Notification to the Employer

Once the court orders wage assignment, the paying parent’s employer is notified of the obligation to withhold child support from the employee’s wages. The employer is required by law to comply with the court order and withhold the specified amount of child support from the employee’s paycheck.

Calculation of Child Support Amount

The amount of child support subject to wage assignment is determined based on the child support guidelines established by Texas law. The guidelines take into account factors such as the parents’ income, the number of children, and any special needs of the child.

The court calculates the amount of child support owed by the paying parent, and this amount is then deducted from the parent’s wages through wage assignment.

Relevant Law: Texas Family Code Chapter 154 .

Frequency of Payments

Child support payments deducted through wage assignment are typically made on a regular schedule, such as weekly, bi-weekly, or monthly, depending on the paying parent’s pay schedule. The employer is responsible for deducting the child support amount from the employee’s paycheck and forwarding it to the appropriate recipient, usually the state child support agency or the receiving parent.

Enforcement of Wage Assignment

Employers in Texas are legally obligated to comply with wage assignment orders issued by the court. Failure to comply with a wage assignment order can result in penalties, fines, and other legal consequences for the employer. Additionally, the state child support enforcement agency has the authority to enforce wage assignment orders and take action against non-compliant employers.

Modification and Termination

Wage assignment orders can be modified or terminated under certain circumstances. If there is a change in the paying parent’s income, employment status, or other relevant factors, either parent can petition the court to modify the wage assignment order. Likewise, if the child support obligation is fulfilled or if the child support order is terminated, the wage assignment order may be terminated accordingly.

• The Allen Firm, PC

What can my boss deduct from my wages?

We are often faced with questions concerning what deductions an employer may make from an employee’s pay check. Confusion concerning the law is not surprising given the discrepancies between the federal law – the Fair Labor Standards Act (FLSA) and the Texas Payday Law. The FLSA covers deductions from the wages of a minimum wage employee that cause the employee’s wages to drop below the minimum wage. The Texas Payday Law covers deductions from wages for all employees.

Without written authorization from the employee, The Texas Pay Day Act allows an employer to make deductions only if they are ordered by a court (child support payments) or authorized by state or federal law (income tax withholding). All other deductions must be in writing and signed by the employee.

The FLSA covers deductions that can lawfully bring an employee’s wage below minimum wage. Under certain circumstances the following items may lawfully cause and employee’s wage to drop below minimum wage:

1. Meals and lodging provided to employee as long as the employer doesn’t profit from the meals and lodging; 2. Tip credits – tipped employees can be paid less than minimum wage; 3. Voluntary wage assignments may be deducted by the employer, typically for contributions to retirement plans, deduction for health insurance etc.; 4. Repayment of loans and wage advancements; 5. Cash shortages due to misappropriation; 6. Court ordered or statutorily authorized deductions.

Note that only the court ordered or statutorily authorized deductions from the above list can be deducted from an employee’s paycheck without prior written consent. It is generally recommended that employers obtain authorization for the deduction of these expenses at the time of hiring along with the completion of all other documents required by law. It is important that the authorization agreement is not overly broad, but still adequately covers the likely deductions that and employer may need to make from the employee’s wages.

Also remember that even if an employee agrees to the deduction, the deduction may not make the employee’s wages fall below the minimum wage unless authorized by the FLSA.

THE TAKEAWAY: Before making deductions from an employee’s wages, you must first consider whether the deductions are authorized by federal law or a court order. If the deduction are not authorized you must have an agreement signed by the employee. Finally, you must consider whether the deductions would result in the employee’s wages dropping below the minimum wage.

The Texas Workforce Commission provides a sample Wage Deduction Authorization Agreement on its website – Click Here.   – The Business Team Scott | Josh | Jeremy  

The Allen Firm, PC 181 S. Graham Street | Stephenville, Texas 76401 | allenlawfirm.com Ph: 254.965.3185 | Fax: 254.965.6539

*this article has been written and provided for educational purposes in an attempt to provide the reader with a general understanding of the particular topic and area of law covered in this article. it is not to be relied upon for any purpose. the reader acknowledges the underlying analysis and legal conclusions referenced in this article may be inaccurate by the changing of the law or by a controlling court opinion to the contrary. no attorney-client relationship exists until an appropriate engagement letter has been signed. contact our firm to discuss how the contents of this article may apply to your specific situation., search our blogs, stephenville office:.

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Home > Definitions > Divorce & Family Law > Child Custody > Wage Assignment

Wage Assignment

What is Wage Assignment?

Wage assignments allow creditors to take money directly from an employee’s paycheck to pay off a debt. They are voluntary agreements between the employee and the creditor. Due to the fact that employees must sign documents authorizing a creditor to take money from their paycheck, wage assignments do not require court approval. These arrangements differ from wage garnishments, in which a creditor must go to court to obtain permission to collect part of a debtor’s wages. Moreover, the employee typically has the right to terminate the wage assignments, while one must go through a legal process to stop a wage garnishment. 

The United States often uses wage assignments to collect child support payments. Wage assignments may also be utilized to pay off other debts such as unpaid taxes or loans. 

Key Takeaways

• A wage assignment is a voluntary agreement that allows creditors to collect money directly from an employee’s paycheck to repay a debt.
• Wage garnishments are used to repay various debt obligations such as taxes, child support, or loans. 
• State laws regulate the conditions and limitations for wage assignments. 

Wages Assignment Limitations

Wage assignments are not regulated by federal law and therefore are not required to follow the Federal Consumer Credit Protection Act. The laws concerning wage assignment vary from state to state. Following are a few examples of restrictions in various states:

• Illinois does not allow wage assignments unless the debt has gone unpaid for at least 40 days.
• In West Virginia, wage assignments are limited to 25% of an employee’s take-home earnings. 
• Employers in Texas have no statutory obligation to honor voluntary wage assignments, but they may be required to do so under a contractual obligation.
• New York does not allow wage assignments to exceed 10% of one’s gross income.
• A spouse or domestic partner must also sign the wage assignment contract if the employee is married or has a domestic partner in Washington or Wisconsin.
• Some states may require that the agreements be renewed annually and prohibit the assignments from lasting longer than three years. Additionally, various states allow wage assignments only when it is used to pay child support .

Bottom Line

W age assignments are undoubtedly a complicated subject. As a matter of fact, plenty of people are not aware of the differences between wage assignments and wage garnishments . Also, although wage assignments are voluntary, employees are not always aware that they agreed to them. Wage assignment provisions may be hidden among the fine print in consumer contracts and loan documents, and employees may not learn about these clauses until it is too late. This is why it is essential to hire proper legal representation to review important contracts before signing them. A seasoned attorney will be able to help you handle these complex arrangements.

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Wage Assignments in Consumer and Other Contracts

Most of the time an employee knows when his wages are about to be garnished: He is sued, the court enters a judgment against him for the amount owed, and thereafter a wage garnishment order ensues. The employee has plenty of time to plan for it, forewarn his employer, and make the process as palatable as possible, should a repayment arrangement not be possible.

Not so for many of the so-called “voluntary” wage assignments that are being included in consumer credit and loan agreements with greater regularity than ever before. These provisions allow the creditor to skip the formality, delay, and expense of the legal process altogether, and go straight to the employer with a demand for garnishment.

An employee typically does not learn about this kind of garnishment until after the garnishment has taken place and he notices his pay check is short.

Difference between Wage Assignments and Wage Garnishment Orders

Technically speaking, a wage assignment is a provision in a private agreement — often a consumer credit agreement like the ones used in buying a refrigerator.

The “wage assignment” provision assigns the borrower’s future wages to the creditor in the event of default by non-payment. If a default occurs, the creditor in effect forecloses on the security (the wages) by sending a garnishment demand to the employer. Usually, the letter is written by the creditor’s attorney or billing department.

To enforce a wage assignment, no court process is involved. That’s the nature of the provision. It says no court process need be involved and authorizes the creditor to skip the time and expense of court and go straight to the employer. It also, of necessity, eliminates the debtor’s opportunity to challenge the debt in court or seek limitations on the garnishment.

Most garnishments are based on a judgment or court order and constitute official orders of the court. The request for garnishment is made to the court and the court grants the request by issuing a garnishment order. This is the case for most wage garnishments for child support.

Types of Voluntary Wage Assignments

Voluntary wage assignments, often simply called “wage assignments,” are those that the indebted employee enters into by agreement. He may agree to it by signing a consumer credit or loan agreement, or he may agree to repay a debt by entering into a repayment agreement with a wage assignment provision.

The typical wage assignment provision allows the employer to take the employee’s future wages as security for the debt involved. In the event of default or nonpayment, it authorizes the creditor to go straight to the employer with a demand for wage garnishment, no court filing or judgment required.

Considering these wage assignments as “voluntarily” is a stretch. Most borrowers don’t read the fine print in consumer contracts and loan papers, have no bargaining strength to oppose these provisions even if they want to, and don’t learn about the wage assignment until it is too late to do anything about it.

Nonetheless, unlike a court order, they do have a voluntary component in that the borrower chose to obtain the credit and afterwards to use it to buy goods or services or receive cash.

Federal Garnishment Law Does Not Protect Wage Assignments

In 1970, Congress passed Title III of the Consumer Credit Protection Act. Under that Act, the federal government took control over wage garnishment proceedings for the first time.

Generally speaking, this law limits the extent to which earnings can be garnished to 25% of “disposable earnings” or to amounts above 30 times minimum wage, whichever is less. It also prohibits the employer from terminating an employee for any wage garnishment based on a single debt.

The definition of “disposable earnings” is key to the determination of the maximum allowed garnishment. “Disposable earnings” means earnings after reduction for legally-required deductions like federal, state and local taxes, the employee’s share of State Unemployment Insurance and Social Security, and Worker’s Compensation.

Importantly, the permitted deductions DO NOT include sums withheld as part of a voluntary wage assignment; as such deductions are not legally required. What this means is that wage garnishment protections do not take into account the effect of voluntary wage assignments. Also, they do not apply to real estate purchases (which have specific contracts).

Furthermore, because wage assignments are not technically considered garnishment under federal law, an employer can lawfully terminate an employee for a single garnishment based on a voluntary wage assignment. Put another way, the anti-termination protections of federal law do not apply to wage assignments.

State Law Limitations on Wage Assignments

Many states have passed laws making wage assignments invalid, due to their intrusive and potentially devastating effect on borrowers. Some states bar any form of wage assignment, while others limit wage assignments to only child or spousal support.

Still others require the written consent of both spouses, or the execution of an entirely separate document addressing the assignment (so as to prohibit it from being buried in the fine print). In all cases, the employer need not comply with an illegal wage assignment, and often would be legally liable for doing so.

Needless to say, the field of voluntary wage assignments is a complicated one. Consulting with an experienced labor and employment, debtor-creditor, and/or consumer counsel is an important part of properly navigating this area of employment.

Citations/references

Federal statute: title iii, consumer credit protection act (ccpa), 15 usc, §§1671 et seq., code of federal regulations: 29 cfr part 870, u.s. wage and hour division: fact sheet #30 – the federal wage garnishment law, consumer credit protection act’s title iii (ccpa), field operations handbook – 02/09/2001, rev. 644, chapter 16, title iii – consumer credit protection act (wage garnishment), summary of state laws on garnishment: http://www.nolo.com/legal-encyclopedia/free-books/employee-rights-book/chapter2-9.html.

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Complying With Wage Garnishments in Texas—What You Need to Know

When you have tens of thousands of employees, it is very likely that your payroll and human resources (hr) departments receive wage garnishment orders for employees every week. texas law is restrictive in this area, and it is important that hr and payroll employees know which types of wage garnishment…...

When you have tens of thousands of employees, it is very likely that your payroll and human resources (HR) departments receive wage garnishment orders for employees every week. Texas law is restrictive in this area, and it is important that HR and payroll employees know which types of wage garnishment orders an employer must follow.

Which Garnishment Orders Must Texas Employers Follow?

The Texas Constitution, in Article 16, section 28, specifically prohibits an employer from garnishing a Texas employee’s wages except for court-ordered child support or spousal support payments. A Texas employer must also comply with tax levies executed by the Internal Revenue Service (IRS), garnishment orders for federally guaranteed student loans, and garnishment orders for federal debts that fall under the federal Debt Collection Improvement Act (DCIA). This is because each of the statutes under which these orders and levies are issued expressly supersede state law. Thus, in general, Texas employers must comply with garnishment orders for federal debts or child support or alimony orders but not garnishment orders that involve creditor debts. In fact, employees may sue their employers for wrongful garnishment if they comply with garnishment orders involving creditor debts.

Which Garnishment Orders Must Multi-State Texas Employers Follow?

What about Texas employers that have multi-state operations? The employer may be required to comply with other types of creditor garnishments on the wages of their Texas employees under the “full faith and credit doctrine” of Article IV of the U.S. Constitution, which requires each state to honor “the public acts, records, and judicial proceedings of every other state.”  The situation may occur when a Texas employer (1) has facilities in other states and (2) is subject to the jurisdiction of the state that issued the wage garnishment.

One of the only cases to deal with the issue of how Texas employers should handle out-of-state wage garnishments is Knighton v. IBM Corp , 856 S.W.2d 206 (Tex. App.—Houston [1 st Dist. 1993], writ denied). The Knighton case involved an IBM employee who was required to pay alimony to his wife under a Florida divorce decree. IBM later transferred the employee to Texas where he stopped making alimony payments. The Florida court that had entered the divorce decree then entered a wage garnishment order requiring IBM to pay the employee’s ex-wife the alimony amount from the employee’s salary and retirement fund.

The employee did not contest the Florida order but rather filed suit in a Texas state court arguing that the out-of-state judgment could be enforced only through Texas collection procedures. At the time, Texas laws did not permit employees’ wages to be garnished for alimony. The court held that the garnishment order was enforceable, explaining that “[a] state cannot deny full faith and credit to another state’s judgment solely on the ground that it offends the public policy of the state where it is sought to be enforced.” Most legal commentators have interpreted the reasoning in this decision to encompass other types of garnishments, including creditor garnishments.

Four Steps Employers Can Take To Handle Garnishments

When faced with one or multiple wage garnishment orders for one employee, an employer should consider taking the following actions:

• Determine whether the employee is currently working for the employer.
• Review each order to determine which is allowed under Texas law. For example, if the employer is based solely in Texas and receives a child support order from the Texas Attorney General, a wage garnishment for a federal debt from the U.S. Treasury, and a creditor wage garnishment from Illinois (where the employer does not have facilities), the employer will be required to comply only with the first two orders.
• Track which wage garnishment order was received first. The general rule is that an employer should garnish wages chronologically according to when the garnishment order was received. A garnishment received first should be handled before each subsequent order, as long as doing so does not violate the statutorily provided garnishment amount. For example, for federal debts, an employer may garnish only up to 15 percent of the employee’s salary, and a garnishment for a federal debt may not bring the employee’s salary below minimum wage. The federal DCIA, however, states that employers must comply with family or child support orders before complying with DCIA orders—even if the DCIA order was received first.
• Employers that do not have to comply with the garnishment order should not file a formal answer with the court that issued the garnishment. Instead, the employer may wish to call the attorney who filed the wage garnishment to discuss Texas law on the issue. Most attorneys will then withdraw the garnishment order against the employer.

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Wage assignment and employers’ responsibilities

Tough economic times raise some tricky HR issues—for example, when an employee’s financial straits begin to affect his employer.

Must we honor a payday loan wage assignment?

Q. An employee borrowed money from a payday loan service at a very high interest rate that I feel is unfair. The payday loan service sent me a “wage assignment” notice and told me that our company must withhold money from his paychecks.  What is a wage assignment, and does our company actually have to honor it? A. A wage assignment is a document that allows a creditor to attach part of the employee’s wages if the employee fails to pay a specific debt. The creditor does not have to obtain a judgment in a court proceeding before requesting payment. Under the Illinois Wage Assignment Act (740 ILCS 170), private employers are obligated to honor a creditor’s properly served demand for a valid wage assignment, unless an employee presents a timely, valid , written defense to the wage assignment.

What constitutes a valid assignment?

Q. How can I tell if a wage assignment is valid? How long is it valid? A. A valid wage assignment document must have the words “Wage Assignment” printed or written in boldface letters of not less than ¼ inch in height at the head of the wage assignment and one inch above or below the line where the employee signs the assignment. The employee must have signed the document in person, and the document must show the date of execution, the employee’s Social Security number, the name of the employer at the time of execution, the amount of money loaned or the price of the articles sold or other consideration given, the rate of interest or time-price differential to be paid, if any, and the date on which such payments are due. A wage assignment is valid for no more than three years after the employee signs it and the employer’s name appears on it. If the employee changes jobs, the wage assignment is valid for two years, even though the new employer’s name does not appear on the assignment.

Handling wage assignments

Q. How does the wage assignment process start? A. Assuming that the wage assignment document complies with the formal requirements, the creditor must serve “demand to withhold” on the employer. The demand is valid only if:

The employee has defaulted on the debt secured by the assignment for more than 40 days, and the default has continued to the date of the demand.

The demand contains a correct statement of the amount the employee is in default, and the creditor provides an original or a photocopy of the assignment to the employer.

The creditor has served a “notice of intention to make the demand” upon the employee, with a copy to the employer, by registered or certified mail not less than 20 days before serving the demand.

Putting on the brakes

Q. Can an employee stop the wage assignment process? A. The employee does have a right to contest the demand. If an employee has a legal defense to the wage assignment, the employee may—within 20 days after receiving a notice of demand or within five days after the employer is served with the demand—notify the employer, in writing, of any defense to the wage assignment and send a copy of the written defense to the creditor by registered or certified mail.   As a result, the employee’s wages are not subject to a demand served by the creditor unless the employer receives a copy of a subsequent written agreement between the creditor and the employee authorizing such payments. Similarly, if the creditor receives a copy of the defense prior to serving its demand upon the employer, the creditor may not serve the demand upon the employer.  Whether the employee’s defense is legally valid is not an issue the employer must resolve. Instead, the employee and the creditor may attempt to reach another agreement or the creditor may simply bring a separate lawsuit against the employee to collect an outstanding debt. 

Calculating the wage assignment payment

Q. How much must the employer withhold—and when? A. The employer must begin payment to the creditor no sooner than five business days after service of such a demand.  The employer must withhold the lesser of:

15% of weekly gross wages

The amount by which the disposable earnings for a week (pay remaining after federal and state taxes, Social Security deductions and any other amounts required by law to be withheld, including required retirement contributions) exceed 45 times the federal minimum wage, unless a notice of defense is received within that five-day period.

The employer shall be paid a fee of $12 for each wage assignment. That $12 is credited against the debt.

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Texas lags behind in minimum wage increases, posing challenges for low-income families

Holly Galvan , Digital Content Producer

As the debate over minimum wage intensifies nationwide, the spotlight now falls on Texas, where stagnant wages have deepened the struggles of low-income families. Despite economic growth in various sectors, poverty rates persist, casting a shadow over the Lone Star State’s prosperity narrative.

SEE ALSO: New $20 minimum wage for fast food workers in California set to start Monday

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With the minimum wage unchanged since 2009 at $7.25 per hour, Texans are grappling with the harsh reality of earning wages that fail to keep pace with the rising cost of living. In Harris County and surrounding regions, where poverty rates exceed the state average advocates say the urgency for wage reform becomes increasingly evident. Against this backdrop, community leaders are mobilizing to address the root causes of poverty and push for change in wage policies.

Minimum wage and poverty in Houston

According to the American Community Surveys by the US Census, approximately 11.5 percent of the entire population in the USA is classified as living in poverty when identifying impoverished families.

In an interview with KPRC 2 in Jan. 2024 Cynthia Colbert, the President of Catholic Charities, said that in Texas, the poverty rate stands at 14%, but escalates to over 16% in Harris County. In the three-county region of Fort Bend, Harris, and Montgomery Counties over one million people are living in poverty, said Colbert.

“Now the U.S. every year updates what we call the poverty line and they establish what it is for a family of four and higher each year and the number goes up (each year). But what we know is if you’re making poverty, you know, minimum wage, $7.50 per hour, even $10 per hour in this region, that’s just not enough to get a family of four by with one wage earner. So if you think about people living in poverty here in our area, they’re probably the people who are visiting our countries, those who might be seeking emergency assistance from the various agencies like Catholic Charities, they might be in our church, they might be on our street.”

SEE ALSO: ‘Minimum wage is not enough to get family of four by:’ Catholic Charities offers help to those who live under poverty

Colbert explained that when individuals seek assistance from their agency, they see numerous reasons for poverty, such as a family member experiencing a severe healthcare issue, a car accident, or some other catastrophic event that depletes their resources and prevents them from meeting their basic needs.

“Other families find themselves in low wages or no wages. So there are lots of reasons why someone could be living in poverty which could be episodic, or it could be unfortunately generational. But what we know is that with support, a goal, and families setting goals, case managers have been successfully working with people to get jobs, to get their basic needs met, and to be on a path towards greater self-sufficiency,” Colbert said. “As a community, we can come together to help people get an education and or job training, to get jobs and then to find affordable housing, which is one of the barriers to a family (having) self-sufficiency.”

Colbert mentioned that the poverty rate is higher among Latinos, Blacks, and there is a high poverty rate among kids who are aging out of the foster care system.

“There are factors from one’s background or life circumstances that also can cause one to be in poverty. But what we also know is that there are ways to help families out of poverty. What we do have is what we call a wraparound model, what are the needs of the entire family,” Colbert said. “How do we get the kids to stay in school and do well in school? How do we get them stable housing, jobs, other basic supports so that a family can find their way out of poverty and it might take time, but it absolutely is possible.”

Understanding minimum wage laws in Texas

While some states are transitioning towards a $15 base pay, there is growing advocacy in Texas for a similar move. However, Texas last increased its minimum wage in 2009, reaching the current rate of $7.25 per hour.

SEE ALSO: $15 dollar minimum wage: What would it mean?

State minimum wage laws vary across the United States, with some states setting their own minimum wage rates higher than the federal minimum wage. Employers must pay their workers the higher of the two rates—either the state or federal minimum wage. However, Texas does not have its own minimum wage law set by the state legislature. Instead, Texas adopts the federal minimum wage rate by reference, meaning that the minimum wage in Texas is currently set at the federal level of $7.25 per hour. Tipped employees in Texas must receive at least $2.13 per hour in cash wages, with tips supplementing their earnings to meet the minimum wage threshold.

By the numbers: Minimum wage statistics

According to the U.S. Bureau of Labor Statistics, service occupations had the highest proportion of hourly-paid workers earning at or below the federal minimum wage, with approximately 4 percent falling into this category. Nearly three-quarters of workers earning the minimum wage or less in 2022 were employed in service occupations, predominantly in food preparation and serving-related roles. For many of these workers, tips often supplement their hourly wages.

• “We do a lot of work”: Texas’ low-wage workers hope for more as Biden, Congress push minimum wage hike

Additionally, the industry with the highest percentage of workers earning hourly wages at or below the federal minimum wage in 2022 was leisure and hospitality, standing at about 7 percent. Approximately three in five workers paid at or below the federal minimum wage were employed in this industry, primarily in restaurants, bars, and other food services.

A significant proportion of minimum wage workers are young, according to the U.S. Bureau of Labor Statistics. While people under the age of 25 made up about one-fifth of hourly paid workers, they accounted for around 45 percent of those earning the federal minimum wage or less. Specifically, approximately 3 percent of employed workers aged 16 to 19 received the minimum wage or less, compared to just under 1 percent of workers aged 25 and above who earned at that level.

SEE ALSO: Mayor Turner signs executive order to raise minimum wage to $15 for Houston airport workers by 2023

How minimum wage affects people across the nation

Alex Miller, a reporting fellow at the Economic Hardship Reporting Project , spoke about how minimum wage affects people across the country.

“The minimum wage is a problem in general because it hasn’t moved a smidge in order to become commensurate with inflation, meanwhile, we’ve never had more billionaires. As of 2022, NYC’s minimum wage is $15. But that’s not saying much because a pack of cigarettes in New York could be $15, depending on where in Manhattan you get them from.

A growing homeless population and contentious immigration policies, as well as vulnerable populations in cities like NYC and Houston, highlight the urgent need for comprehensive solutions in the U.S.

“Our homeless population is ridiculous. Our policy on housing immigrants is atrocious, especially considering that we’re a sanctuary city and our current mayor promised exactly what he’s fighting against,” Miller said. “For the first time in 50 years, we have homeless children openly displayed in New York. Most of them don’t speak English.”

Copyright 2024 by KPRC Click2Houston - All rights reserved.

About the Author

Holly galvan.

Holly joined the KPRC 2 digital team in March 2023, leveraging her eight years of expertise in blogging and digital content to share her passion for Houston. Outside of work, she enjoys exploring the city's vibrant scenes, all while balancing her roles as a wife and mother to two toddlers.

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Lawmakers in Springfield considering phasing out lower minimum wage for tipped workers

Currently, tipped workers earn a sub-minimum wage of $8.40 an hour, and supplement income with tips

OAK BROOK, Ill. (WLS) -- Lawmakers in Springfield are discussing pay for tipped workers.

One bill on the docket would raise wages for those workers.

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It's a plan that is drawing criticism from restaurant owners.

At lunchtime at Lucca Osteria and Bar in Oak Brook, owner Steven Hartenstein said his employees work hard to provide great customer service to patrons.

"They work on: the better the service, presumably, the better the tips," Hartenstein said.

But Hartenstein, who is also the chairman of the Illinois Restaurant Association, said lawmakers in Springfield are proposing changes to the pay structure for tipped workers that he said would cause them to lose money.

"What they're trying to do is come up with a solution to a problem that doesn't exist," Hartenstein said.

The proposal calls for phasing out a lower minimum wage for tipped workers.

RELATED: ' One Fair Wage' minimum wage for tipped workers plan passes city council committee

Currently, tipped workers earn a sub-minimum wage of $8.40 an hour, and supplement income with tips.

Under the proposal, all tipped workers in Illinois would be paid the state's minimum wage of $14 an hour, with tips put on top of that.

But there is concern that if restaurants pay their employees more, they would pass that cost on to patrons.

"You're paying up to $20 for a burger now. That's gonna go up to $30, or they're gonna close," Hartenstein said.

Server Luis Torreijos is worried patrons wouldn't be as generous with tips. He currently makes more than twice the minimum wage.

"And thank God for that. I'll be able to afford to send my kids to college, have a decent life, and I don't understand why they want to change it," Torreijos said.

The push for raising the minimum wage for tipped works comes four months after the Chicago City Council passed a similar measure.

Proponents say it will put more money into the pockets of women and people of color, who they say are negatively impacted by biases in the tipped wage system.

Sponsors of the legislation did not immediately respond to a request for comment.

A House committee will take up the issue in Springfield Wednesday. Both supporters and opponents will be on-hand to watch what happens.

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Major University Lays Off Dozens Of DEI Staff To Comply With Texas Crackdown

T he University of Texas at Austin (UT Austin) will lay off dozens of staff with diversity, equity and inclusion (DEI) portfolios in compliance with a new state law that bans such entities at public colleges and universities.

Republican Gov. Greg Abbott of Texas signed into law Senate Bill 17 — legislation that bans DEI offices, assignment of DEI duties to employees, DEI training, and DEI statements in hiring — on June 14, 2023, affecting all publicly-run colleges and universities across the state.

After the bill’s sponsor, Republican state Sen. Brandon Creighton of Conroe, wrote letters to the chancellor of the University of Texas System and other institutions to demand compliance with the law, UT Austin President Jay Hartzell announced on Tuesday that some positions in support of DEI initiatives would “no longer be supported,” according to a statement.

Read: Special Counsel Jack Smith Fires Warning Shot At Florida Judge Overseeing Trump Documents Case

“The positions that provided support for those associate and assistant deans [focused on DEI] and a small number of staff roles across campus that were formerly focused on DEI will no longer be funded,” Hartzell wrote in the statement. The “associate and assistant deans” who led DEI initiatives were drawn from existing full-time faculty and, thus, they will not be laid off by UT Austin, Hartzell noted.

The exact number of positions eliminated is unclear. A joint statement from the NAACP and Association of American University Professors noted that “approximately 60 persons received these pink slips.”

Hartzell noted that employees laid off would have the opportunity to continue working for UT Austin, though no longer in a DEI capacity.

“[C]urrent student-facing services will continue to be available for the rest of this semester, and student workers also will retain their positions through the end of this term. Staff members whose positions are being eliminated will have the opportunity to apply and be considered for existing open positions at the University, and resources will be made available to support them,” he wrote.

Read: RNC, Trump Campaign Raise Over $65 Million In March

Senate Bill 17 has been criticized by left-wing entities as damaging the goal of accessibility in higher education.

“We’ve concluded is that the best way we can advance [diversity] is to eliminate the only thing we’ve ever done to advance the cause of diversity in higher education,” said Democratic state Sen. Nathan Johnson of Dallas County during a debate on the bill in the Texas Senate in April of 2023. “It strikes me as not just ironic or disappointing, but somewhat lazy [and] remarkably unimaginative.”

“ This legislation threatens to eliminate critical tools still needed to advance educational equity and will negatively impact student outcomes, such as retention and graduation rates,” wrote the Legal Defense Fund in a statement in May of 2023 representing several left-wing civil rights organizations.

Texas is not the only state that has targeted university DEI programs. In June of 2023, the Wisconsin Legislature cut the University of Wisconsin’s budget by $32 million to defund its DEI programs.

Texas’ law came into force on Jan. 1 this year. Creighton did not immediately respond to a request for comment.

First published by the Daily Caller News Foundation .

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California schools forced to compete with fast food industry for workers after minimum wage hike

By ADAM BEAM Associated Press

SACRAMENTO, Calif. (AP) — Lost in the hubbub surrounding California’s new $20-per-hour minimum wage for fast food workers is how that raise could impact public schools, forcing districts to compete with the likes of McDonald’s and Wendy’s for cafeteria workers amid a state budget crunch.

The minimum wage law that took effect Monday guarantees at least $20-per-hour for workers at fast food restaurant chains with at least 60 locations nationwide. That doesn’t include school food service workers, historically some of the lowest-paid workers in public education.

Yet demand for school meals is higher than ever in California, the first state to guarantee free meals for all students regardless of their family’s income. And demand is projected to fuel an increase of more than 70 million extra meals in California schools this year compared to 2018, according to the state Department of Education.

But these jobs typically have lots of turnover and are harder to fill. The minimum wage boost for fast food workers could make that even more difficult.

“They are all very worried about it. Most are saying they anticipate it will be harder and harder to hire employees,” said Carrie Bogdanovich, president of the California School Nutrition Association.

Statewide, some districts have already taken steps to compete in the new reality. Last year, the Sacramento Unified School District — anticipating the law’s passage — agreed to a 10% increase for its food service workers and other low-paying jobs, followed by another 6% increase July 1 of this year to bump their wages up to $20 per hour.

Cancy McArn, the district’s chief human resources officer, said it was the largest single raise in the district in nearly three decades.

“We are looking not only at competing with districts and comparing with districts, we’re also looking at fast food places,” McArn said.

In Southern California, San Luis Coastal Unified doubled its food service staff to 40 people after seeing a 52% increase in the number of students eating school meals. The district prepares 8,500 meals daily for 7,600 students across 15 school sites — breakfast, lunch and even supper options for youth in after-school sports and activities.

The district has since limited the number of its entry-level positions, which are the hardest to fill, while seeking to hire more for complex roles like “culinary lead” and “central kitchen supervisor” that require more skills and hours — making them more attractive to job seekers.

“That’s allowed us to be more competitive,” said Erin Primer, director of food and nutrition services for the San Luis Coastal Unified School District.

Tia Orr, executive director of the Services Employees International Union California — which represents both school food service workers and fast food employees — said school districts and other service industries must consider raising wages because of this new law.

“This is a good thing, and it is long overdue,” she said.

But some districts are limited in what they can do. In the Lynwood Unified School District in Los Angeles County, the starting salary for food service workers is $17.70 per hour and maxes out at $21.51 per hour, according to Gretchen Janson, the district’s assistant superintendent of business services. She said these workers only work three hours per day, meaning they aren’t eligible for health benefits.

Janson says the district is waiting to see how employees react, adding: “We just don’t have the increase in revenue to be able to provide additional funding for staff.”

Nuria Alvarenga has worked food service in the Lynwood School District for 20 years. She makes $21 per hour now, but said she could likely earn more in fast food.

While she said several co-workers were considering finding other jobs, she hasn’t decided yet what she will do. She normally works at an elementary school, but has been filling in recently at a high school where she enjoys seeing former students recognize her as they stand in line for lunch.

“I’m so glad they still remember me,” she said.

School food service workers have gotten more support in recent years under a state push to expand school meals and make them more nutritious. That included $720 million in recent years for upgrades to school kitchens to better prepare fresh meals, plus $45 million to create an apprenticeship program to professionalize the industry.

It would be difficult for lawmakers to mandate a raise for school food workers given the complexities of the state’s school funding formula. That’s why some advocacy groups, including the Chef Ann Foundation, proposed a state-funded incentive program that would have given school food workers who completed an apprenticeship program a $25,000 bonus payable over five years.

That idea didn’t make it into Democratic Gov. Gavin Newsom’s budget proposal released in January. The state is facing a multibillion dollar budget deficit , limiting new spending.

But pay raises aren’t the only incentives school districts can offer. There’s also health insurance, paid vacation, no night or weekend shifts and a pension that could guarantee a monthly income after retirement. Plus, school food workers have predictable hours, letting them work other jobs if they wish — or in summer when school is out.

“Restaurants are laying off employees. They’re cutting hours,” said Eric Span, director of nutrition services for the Sweetwater Union High School District in San Diego County. “I think we should position ourselves to really talk about some stability.”

Michael Reich, a labor economics professor at the University of California-Berkeley, said those factors could favor school districts when competing for workers.

“Working in a school cafeteria gives you more stability, job security and maybe less stress than in a profit making institution,” he said. “So there’s a lot of advantages from a community standpoint. But that’s not to say they don’t also want to get more money.”

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‘And the kiosk still asks if you wanna tip’: McDonald’s customer blames self-service kiosks on $20 minimum wage, and viewers are divided

'even more crazy is the fact that their prices will remain high.'.

Braden Bjella

Posted on Apr 3, 2024   Updated on Apr 3, 2024, 7:53 am CDT

On April 1, the state of California officially increased its minimum wage for fast food workers to $20 an hour. According to CNN , the new rate only applies to “restaurant chains with more than 60 nationwide locations.” 

While the move was celebrated by industry workers, the transition has been plagued by fears that these heightened wages would increase prices. 

These fears have spilled over to TikTok, where numerous videos on the topic have gone viral. One such video was recently posted by TikTok user @gdogg1000, who, in a clip with over 2 million views, shows an array of self-service kiosks at a McDonald’s location.

“April 1st. Day 1 $20 hour minimum wage. No registers open. No menu’s turned on. Self serve only,” he wrote in the text overlaying the video.

The implication of his video, it would seem, is that the store has opted not to staff registers to save money owing to the newly increased wages.

However, McDonald’s has been rolling out self-serve kiosks long before this $20 minimum wage was in discussion. A 2018 Business Insider piece notes that McDonald’s has been installing these kiosks since 2015, a year in which every state had a minimum wage under $10.

This may be why most commenters did not believe @gdogg1000’s explanation as to the prominence of these kiosks.

“This would of happened either way with 20 minimum wage or not,” said a user.

“McDonald’s is doing this in areas that don’t have a $20 minimum wage,” added another.

“Same in Texas,” observed a third. “Min wage is $7.25.”

Several users also pointed out McDonald’s profits and CEO pay. At the end of 2023, McDonald’s reported a gross profit of $14.563 billion; the company’s CEO, Chris Kempczinski, was paid $17.77 million in compensation for the year 2022. 

As noted by a press release from the U.S. Senate Committee on Health, Education, Labor, and Pensions, “Today, a typical McDonald’s worker would have to work more than 1,200 years to earn the $17.77 million in compensation that McDonald’s CEO Chris Kempczinski was paid in 2022.”

@gdogg1000 $20 hour minimum wage in California.# #minimumwage # #15dollarminimumwage # #wages # #antiwork # #layoffs2024 ♬ original sound – Gdogg1000

@gdogg1000 #greenscreen #minimumwagecheck #wages #antiwork #layoffs2024 #15dollarminimumwage #20dollar #california #californialaborlaws #californialaborcode #californialaws2024? ♬ original sound – Gdogg1000

Back on TikTok, further users observed that, if restaurants were truly using these kiosks to reduce labor costs, they would expect a decrease in menu prices. This has not been the case.

“So the prices have been lowered for the food?” sarcastically asked a commenter.

“even more crazy is the fact that their prices will remain high,” echoed a second.

One user even poked fun at the prevalence of tipping culture at a variety of self-serve kiosks in retail stores: “And the kiosk still asks if you wanna tip.”

The Daily Dot reached out to McDonald’s via email and @gdogg1000 via TikTok comment.

The internet is chaotic—but we’ll break it down for you in one daily email. Sign up for the Daily Dot’s web_crawlr newsletter  here  to get the best (and worst) of the internet straight into your inbox.

Braden Bjella is a culture writer. His work can be found in Mixmag, Electronic Beats, Schon! magazine, and more.

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Ready or not, self-driving semi-trucks are coming to America’s highways

Autonomous truck companies plan a major expansion this year to deliver your packages and food, speeding well ahead of federal safety regulations.

PALMER, Tex. — Perched in the cab of a 35,000-pound semi-truck lumbering south on Interstate 45, AJ Jenkins watched the road while the big rig’s steering wheel slid through his hands. Jenkins was in the driver’s seat, but he wasn’t driving. The gigantic 18-wheeler was guiding itself.

Over several miles on the popular trucking route between Dallas and Houston, the truck navigated tire debris, maneuvered around a raggedy-looking flatbed and slowed for an emergency vehicle. Exiting the highway, it came to an abrupt stop as a pickup jumped its turn at a four-way intersection.

“You need to be ready for anything,” said Jenkins, 64, a former FedEx driver whose job is to take control if anything goes wrong. “People do some crazy stuff around trucks.”

Operated by Aurora Innovation, the truck is part of a new class of autonomous big rigs plying the nation’s highways. By the end of this year, the trucks will for the first time start traveling alone, without human minders like Jenkins, as two major companies — Aurora and Kodiak Robotics — launch fully autonomous trucks in Texas.

The advent of robot trucks could have a massive impact on America’s supply chain, dramatically reducing the time it takes to transport goods from place to place and unbinding the trucking industry from the costs and physical limitations of human labor. But the technology’s advancement has sparked concerns about highway safety, job loss, a lack of federal regulation and a patchwork of state laws regarding where and how autonomous trucks can operate.

By default, driverless passenger vehicles and trucks can ride anywhere in the United States, unless a state explicitly says they can’t. That means companies can test and operate their vehicles across most of the country. Two dozen states, including Texas, Florida, Arizona and Nevada, specifically allow driverless operations, according to data compiled by Aurora, while another 16 states have no regulations specific to autonomous vehicles. The remaining 10 — including California, Massachusetts and New York — place limits on autonomous vehicles within their borders.

Alarmed by the slow pace of federal regulation, labor and safety advocates are pushing legislation in several states to ban driverless trucks outright. So far, the effort has been unsuccessful. The California legislature approved a measure last year that would have required human operators in all autonomous trucks, but Gov. Gavin Newsom (D) vetoed it, calling it “unnecessary” in light of state regulations that already ban autonomous vehicles over 10,000 pounds.

Transportation experts have been frustrated at how slowly the federal government has moved on the issue, given its potential to disrupt a massive part of the American economy.

Steve Viscelli, a sociologist at the University of Pennsylvania who studies the trucking industry, said autonomous trucking could “change the geography of our economy in the way that railroads and shipping did.”

“There are real concerns that drivers have of the impacts of this,” Viscelli said, “and we need to take them seriously.”

Driverless passenger cars have caused chaos in cities like San Francisco, including one horrific accident last year when a robotaxi hit a jaywalking pedestrian and dragged her about 20 feet. The potential for catastrophe is even greater with massive autonomous trucks, critics say.

“Even with these small vehicles, it has been a disaster,” said Peter Finn, a vice president of the Teamsters Local Union 856, which represents truck drivers. “The notion that there is going to be no human being in large trucks barreling down the highways absolutely frightens me.”

Major expansion

Today, Aurora’s long-haul trucks are transporting packages and produce — about 100 deliveries a week — for FedEx, Uber Freight and others. Founded in 2017 by former executives at Uber, Google’s self-driving project and Tesla, the company has been training its driverless trucks in Texas since 2020.

By the end of this year, Aurora says it plans to have about 20 fully autonomous trucks working the 240-mile stretch between Dallas and Houston. Eventually, it plans to operate thousands of trucks all across America.

Kodiak Robotics, which was founded by a former employee of Uber and Alphabet’s Waymo, similarly plans to launch a fleet of trucks by the end of the year in Texas. A third company, Daimler Trucks — a subsidiary of German-owned Daimler that has partnered with Torc Robotics — is a few years behind, with plans to launch a driverless fleet in America by 2027.

Nat Beuse, Aurora’s chief safety officer, said the self-driving truck industry has been “methodical” in deploying its technology, adopting strict safety standards, including how the trucks respond to various system failures. Beuse said the company has learned from the mistakes of other autonomous vehicle companies, including General Motors-owned Cruise, which recalled its entire driverless fleet after the San Francisco crash.

“The federal government has been clear in that unless a state says you can’t deploy, you can. But that doesn’t mean as a company we don’t have responsibilities,” Beuse said. “This is not a science experiment.”

Marc Williams, executive director of the Texas Department of Transportation, said Texas has a good relationship with the companies testing on its roads. The state has been at the “forefront” of supporting the industry, he said, and it is critical for its economic growth as demand grows for moving freight around the state.

“If we’re going to meet that challenge, it requires us to be successful in these partnership and collaborations with trucking and autonomous trucking industry,” Williams said at a February panel with Partners for Automated Vehicle Education, a coalition of industry advocates.

The average driver would find it tough to spot one of Aurora’s trucks, which bear only a small rear-facing sign that reads “AUTONOMOUS TEST VEHICLE.”

The view from inside the cab looks very different, however. On a recent day in February, two computer screens animated a flurry of potential hazards: Tire debris dotting the shoulder. Impatient SUVs and sedans eager to pass. An SUV merging without a turn signal.

Stephen Tune, a vehicle operations specialist, sat in the passenger seat, monitoring the screens. He narrated the truck’s every movement for Jenkins: “Moving to the right to avoid tire debris,” Tune said as the turn signal began to blink. “Moving to the left as a courtesy to the car behind us.”

On this drive, the truck followed all the rules of the road and even demonstrated an uncommon courtesy to other drivers. But it’s the unexpected scenarios — from errors by human drivers to sudden mechanical issues — that worry veteran truck drivers like Lewie Pugh.

“I know my computer and cellphone make mistakes. Machines can have bad days, too,” said Pugh, executive vice president of the Owner-Operator Independent Drivers Association, a national organization representing professional truck drivers.

While Texas has been the center of autonomous truck testing, companies also have been running vehicles in Oklahoma and New Mexico, among other places. Since 2021, trucks operated by all three major companies have been involved in a handful of traffic incidents, according to data from the National Highway Traffic Safety Administration (NHTSA).

None have been fatal or caused serious injuries, but the incident logs provide a window into the range of obstacles the trucks have faced.

In July 2022, a Daimler truck rolled over an object on a New Mexico highway that punctured its fuel tank, causing oil to spill onto the highway. In December 2023, a deer stumbled onto the path of a Daimler truck testing in Texas. The test driver took over, but the truck still hit the deer.

Earlier that month, a pickup truck trying to overtake an Aurora vehicle hydroplaned and hit the Aurora’s trailer. The Aurora detected the pickup but was unable to avoid contact.

The companies will be attempting to succeed in an industry that has faced setbacks. Waymo, the self-driving company owned by Alphabet, said in July that it would push back the timeline of its trucking efforts so it could instead focus on ride-hailing. Chinese autonomous trucking company TuSimple Holdings wound down its U.S. operations in 2023, a year after one of its automated trucks was involved in a crash while testing.

Still, autonomous trucks will make highways safer, those working on the technology say. According to the latest federal data, 5,788 people were killed in crashes involving a large truck in 2021, representing 13 percent of traffic deaths that year.

Tech moving faster than regulation

As profit-driven companies race toward deployment, the federal government has been slow to grapple with the implications of the new technology. The U.S. Transportation Department has largely allowed the companies to test their products on public roads, as long as companies comply with the same safety standards that apply to traditional human-driven trucks.

Within the Transportation Department, NHTSA and the Federal Motor Carrier Safety Administration have been working for more than five years on a proposal to create basic “safety guardrails” for autonomous trucks, including requirements for remote assistants to monitor the driverless vehicles, inspections and vehicle maintenance. The proposed rule, which was submitted to the White House’s Office of Management and Budget in December, would be the Biden administration’s most significant action on autonomous trucking.

Transportation Department spokesperson Sean Manning was unable to say when the rule might be finalized, as it still has to go through several more bureaucratic steps. Until then, Manning said existing laws prohibit any vehicle, including those equipped with automated technology, from “posing an unreasonable risk to safety.” Meanwhile, NHTSA “will continue its vigorous enforcement using its defect and oversight authorities,” Manning said — including investigations or recalls — if it finds evidence of risk.

Aurora and Kodiak both support the idea of federal regulation, which would give them more certainty about standards as they expand nationally.

“Having a federal framework gives confidence to regulators and the public that the federal government is watching this closely,” said Daniel Goff, the head of policy at Kodiak.

Anxious truck drivers

Richard Gaskill, a truck driver in Texas since 1998, said he spots an autonomous test vehicle every now and then as he carries loads along I45.

“It’s too new for me to trust,” Gaskill, 50, said of the technology. “I don’t like the idea of these being out there taking our jobs.”

Gaskill’s anxiety is shared by union and trade groups like the Teamsters. But a 2021 study from the Transportation Department suggests concerns about widespread job loss may be misplaced: Autonomous trucking could at most lead to 11,000 layoffs in the next five years, the study says — less than 2 percent of the long-haul driver workforce.

Meanwhile, the study notes that the technology could create new job opportunities for maintenance technicians, dispatchers and fuelers while helping to relieve the drudgery that sometimes comes with being a long-haul trucker. And the autonomous truck companies say their technology can help transport goods around the country faster, as robot trucks can drive longer hours than human drivers.

Gaskill doesn’t buy it. He says he can’t fathom how a robot could navigate the nation’s chaotic highways better than he can. But as companies like Aurora expand, he is resigned to the fact that autonomous trucks are part of the future.

“It’s just a matter of time,” he said.

A previous version of this article misstated the year since when Richard Gaskill has been a truck driver in Texas. It is 1998. The article has been corrected.