Employers should be prepared to comply with new paid sick leave ordinances as of August 1, 2019, in both Dallas and San Antonio. Penalties will be $500 per violation. A third ordinance in Austin, nearly identical to the others, is currently being challenged in court.
Since February 2018, three cities in Texas—Austin, San Antonio, and Dallas—have passed paid sick leave ordinances. Initially, it appeared almost certain that the Texas legislature would pass a law preventing the ordinances from taking effect, but failed to do so by the close of session on May 27. While there has been talk of calling a special session to address the issue, it has not yet happened and would be an extreme measure.
The Austin ordinance is currently being challenged in court. In November 2018, the Austin-based Texas Third Court of Appeals enjoined the ordinance, reasoning that it is preempted by the Texas Minimum Wage Act. The appellate court’s ruling is currently on appeal to the Texas Supreme Court, and the Texas Supreme Court’s ruling likely will impact the Dallas and San Antonio ordinances as well. The briefing deadline for the appeal to the Texas Supreme Court recently was extended to June 28, so it now appears unlikely that a decision will be rendered before the Dallas and San Antonio ordinances are set to take effect on August 1, 2019.
In light of the foregoing, employers with Dallas and San Antonio employees should be aware of the ordinances’ requirements. All three of the ordinances are nearly identical, and their main elements are as follows.
While there is still a chance that the ordinances may not take effect on August 1, 2019, the odds are far less likely than initially anticipated. As a result, employers should take measures to comply with the ordinances’ requirements by August 1.
If you have any questions or would like more information on the issues discussed in this LawFlash, please contact any of the following Morgan Lewis lawyers: