Despite broad-based support, the Texas Legislature failed to pass a law preempting the type of paid sick leave ordinances enacted in Austin, San Antonio, and most recently Dallas before the end of its regular session on May 27, 2019. While a Texas court of appeal enjoined implementation of Austin’s paid sick leave ordinance and later ruled it unconstitutional, no litigation has been filed concerning the San Antonio and Dallas ordinances. Accordingly, companies with employees in San Antonio and Dallas may want to review their current policies to ensure compliance with these ordinances, both of which will take effect for most employers on August 1, 2019.
In 2018, the city councils in both Austin and San Antonio passed ordinances to require employers to provide paid sick leave to employees. The ordinances have faced legal challenges, including a ruling in November 2018 that the Austin law is unconstitutional due to preemption by the Texas Minimum Wage Act. Neither ordinance has taken effect to date. Now the state senate has taken up the matter.
In the early hours of February 16, 2018, the Austin City Council passed a new ordinance on earned sick time that affects employers in Austin, Texas. The ordinance will not take effect until October 1, 2018, and is likely to be challenged in court almost immediately. Nevertheless, local employers should be aware of the basic requirements of the law so that they can prepare for the possibility of enforcement this fall. Likewise, employers in other cities should keep informed on this issue as sick leave laws are becoming more prevalent across the country.