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Texas Payroll/Personnel Resource

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Institution of Higher Education Provisions
Assignment, Pledge, or Transfer of Salary or Wages as Security for Indebtedness

Institutions of higher education may not charge an employee (any person employed by an institution of higher education in an executive, administrative or clerical capacity, or as a professor or instructor or in any similar capacity) for establishing an assignment, pledge or transfer of any interest in the employee’s salary or wages as security for indebtedness.

The employee must obtain written approval from the institution according to its established policy before or at the time the assignment, pledge or transfer is used to secure the indebtedness.

Sources

Texas Education Code, Sections 51.934(a)-(c); Texas attorney general opinion MW-566 (1983); Texas attorney general letter opinion 96-051 (1996).