89R3431 DNC-F     By: Simmons H.B. No. 1880       A BILL TO BE ENTITLED   AN ACT   relating to requiring certain employers to provide paid sick leave   to employees; providing administrative penalties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle D, Title 2, Labor Code, is amended by   adding Chapter 83 to read as follows:   CHAPTER 83. EARNED PAID SICK LEAVE          Sec. 83.001.  DEFINITIONS. In this chapter:                (1)  "Commission" means the Texas Workforce   Commission.                (2)  "Employee" means a person employed by an employer   for compensation who works at least 80 hours in a calendar year.   The term includes a person who works through an employment agency,   as defined by Section 21.002, and a temporary help firm, as defined   by Section 201.011. The term does not include a person who is:                      (A)  an unpaid volunteer; or                      (B)  an independent contractor.                (3)  "Employer" means a person who is engaged in an   industry affecting commerce and who employs one or more employees.                (4)  "Family member" means:                      (A)  a person related to an employee within the   third degree by consanguinity or affinity, as described by   Subchapter B, Chapter 573, Government Code; or                      (B)  a person related to an employee by   consanguinity or affinity who lives in the employee's household.                (5)  "Family violence" has the meaning assigned by   Section 71.004, Family Code.                (6)  "Household" has the meaning assigned by Section   71.005, Family Code.                (7)  "Sexual assault" means any conduct that   constitutes an offense under Section 22.011 or 22.021, Penal Code.                (8)  "Stalking" means any conduct that constitutes an   offense under Section 42.072, Penal Code.          Sec. 83.002.  APPLICABILITY OF CHAPTER. This chapter does   not apply to an employer who is:                (1)  a state agency or political subdivision, as those   terms are defined by Section 21.002; or                (2)  an agency of or a corporation wholly owned by the   federal government.          Sec. 83.003.  PAID SICK LEAVE REQUIRED.  Each employer shall   provide paid sick leave annually to each employee in this state   under the terms of this chapter.          Sec. 83.004.  PAID SICK LEAVE ACCRUAL AND CARRYOVER. (a)   Paid sick leave under this chapter accrues beginning on the date of   hire at a rate of one hour of paid sick leave for each 30 hours   worked by an employee.          (b)  An employer may not limit the maximum number of hours of   paid sick leave an employee may accrue to less than:                (1)  64 hours per calendar year, if the employer   employed at least 15 employees, not including family members, at   any time during the preceding calendar year; or                (2)  48 hours per calendar year, if the employer   employed fewer than 15 employees, not including family members, at   any time during the preceding calendar year.          (c)  Each employee is entitled to carry over not more than   the number of hours specified in Subsection (b) of unused paid sick   leave from the current calendar year to the following calendar year   unless the employer elects to make paid sick leave available at the   beginning of a year as provided by Section 83.005(c).          (d)  Sick leave hours carried over from a previous calendar   year must be immediately available to the employee in the following   calendar year.          Sec. 83.005.  ENTITLEMENT TO USE PAID SICK LEAVE;   LIMITATIONS. (a) An employee is entitled to use accrued paid sick   leave under this chapter 60 calendar days after the date of hire,   unless the employer agrees to an earlier date.          (b)  An employee is not entitled to use accrued paid sick   leave under this chapter on more than eight calendar days in any   calendar year.          (c)  An employer may make immediately available to an   employee at the beginning of a year, quarter, or other period the   entire amount of paid sick leave that the employee is expected to   accrue during the year, quarter, or other period.          (d)  At the employer's discretion, an employer may loan paid   sick leave time to an employee in advance of accrual by the   employee.          (e)  On the mutual consent of the employee and employer, an   employee who chooses to work additional hours or shifts during the   same or following pay period, instead of hours or shifts missed,   does not use accrued paid sick leave. An employer may establish   incentives to encourage employees to work additional hours or   shifts as provided by this subsection instead of using accrued paid   sick leave.          (f)  Unless an employee policy or collective bargaining   agreement provides for the payment of accrued fringe benefits on   termination, an employee is not entitled to payment of unused   accrued paid sick leave under this chapter on termination of   employment.          Sec. 83.006.  PAY RATE FOR SICK LEAVE. Each employer shall   pay each employee for paid sick leave taken at a pay rate equal to   the normal hourly wage for that employee. The employee's normal   hourly wage may not be less than the amount required by Section   62.051.          Sec. 83.007.  USE OF PAID SICK LEAVE. (a) An employee may   use paid sick leave accrued under this chapter if:                (1)  the employee is ill, is injured, or has an   appointment with a health care provider;                (2)  it is necessary for the employee to:                      (A)  care for a family member who is ill or   injured; or                      (B)  accompany a family member to an appointment   with a health care provider; or                (3)  the employee or the employee's family member is a   victim of family violence, sexual assault, or stalking and the   employee or the family member needs to:                      (A)  receive medical attention;                      (B)  relocate the employee's or the family   member's residence;                      (C)  receive services from a victim services   organization; or                      (D)  participate in a legal proceeding or   court-ordered requirement relating to the family violence, sexual   assault, or stalking.          (b)  An employer may adopt a reasonable procedure to verify   that the use of paid sick leave by an employee who uses the leave for   more than three consecutive work days meets the requirements of   this section.          (c)  An employer may not require an employee to find another   employee to work during the time the employee intends to use paid   sick leave as a condition of using paid sick leave.          Sec. 83.008.  NOTICE TO EMPLOYER. (a)  If an employee's need   to use paid sick leave under this chapter is foreseeable, an   employer may require advance notice of the intention to use paid   sick leave.          (b)  If an employee's need for paid sick leave is not   foreseeable, an employer may require the employee to give notice of   the intention to use paid sick leave under this chapter as soon as   practicable.          Sec. 83.009.  EMPLOYER STATEMENT. (a) At least monthly, an   employer shall provide to each employee an electronic or written   statement that includes an accounting of the paid sick leave taken   by the employee and the current amount of paid sick leave available   to the employee.          (b)  An employer shall retain records that document the   amount of paid sick leave accrued and taken by each employee. The   records must be maintained for the applicable period of time   required by 29 C.F.R. Part 516, Subpart A.          (c)  This section does not create a new requirement for a   certified payroll.          Sec. 83.010.  NOTICE TO EMPLOYEES. (a) An employer shall   include in the employer's employee handbook a notice containing an   employee's rights and remedies relating to paid sick leave required   by this chapter.          (b)  This section does not require an employer to create an   employee handbook.          (c)  An employer shall display in a conspicuous place,   accessible to employees, at the employer's place of business a   notice that describes the requirements of this chapter. The   commission by rule shall prescribe the form and content of the   notice.          Sec. 83.011.  EMPLOYER COMPLIANCE.  An employer is in   compliance with this chapter if the employer offers paid leave   that:                (1)  may be used for the purposes described by Section   83.007; and                (2)  is accrued at a rate equal to or greater than the   rate described by Section 83.004.          Sec. 83.012.  BREAK IN SERVICE. (a) Termination of an   employee's employment by an employer, regardless of whether   voluntary or involuntary, is considered a break in service for   purposes of this chapter.          (b)  An employee who is subsequently rehired by the employer   following a break in service:                (1)  begins to accrue paid sick leave under this   chapter; and                (2)  is not entitled to any unused hours of paid sick   leave that accrued before the employee's break in service, unless   the employee is rehired within six months of separation or the   employer agrees to reinstate all of the employee's previously   accrued paid sick leave.          Sec. 83.013.  TRANSFER OF EMPLOYEE. (a) The transfer of an   employee to a separate division, entity, or location of the same   employer is not considered to be a break in service for purposes of   this chapter.          (b)  Following a transfer described by Subsection (a), the   transferred employee is entitled to:                (1)  retain all accrued paid sick leave under this   chapter; and                (2)  immediately access the retained paid sick leave   without any waiting period.          Sec. 83.014.  SUCCESSOR EMPLOYER. If an employer succeeds   or takes the place of an existing employer, employees of the former   employer who are employed by the successor are entitled to:                (1)  retain all accrued paid sick leave under this   chapter; and                (2)  immediately access the retained paid sick leave   without any waiting period.          Sec. 83.015.  LIMITATIONS OF CHAPTER. This chapter does   not:                (1)  prevent an employer from providing more paid sick   leave than is required under this chapter;                (2)  prohibit an employer that provides paid leave in   addition to the paid sick leave required under this chapter from   restricting the purposes for which an employee may take that   additional leave; or                (3)  diminish any rights provided to any employee under   a collective bargaining agreement.          Sec. 83.016.  COLLECTIVE BARGAINING AGREEMENTS. A   collective bargaining agreement may waive the requirements of this   chapter by clear and unambiguous language within the agreement.          Sec. 83.017.  RETALIATION PROHIBITED.  An employer may not   take retaliatory personnel action or otherwise discriminate   against an employee because the employee:                (1)  requests or uses paid sick leave in accordance   with this chapter; or                (2)  files a complaint with the commission alleging the   employer's violation of this chapter.          Sec. 83.018.  COMPLAINT; HEARING; ADMINISTRATIVE PENALTY.   (a) Any employee aggrieved by a violation of this chapter may file   a claim with the commission in the manner prescribed by Subchapter   D, Chapter 61.          (b)  On receipt of a complaint, the commission shall   investigate and dispose of the complaint in the same manner as a   wage claim under Subchapter D, Chapter 61.          (c)  An employer who is found by the commission, by a   preponderance of the evidence, to have violated Section 83.017 is   liable to the commission for an administrative penalty of $500 for   each violation.          (d)  An employer who is found by the commission, by a   preponderance of the evidence, to have violated a provision under   this chapter other than Section 83.017 is liable to the commission   for an administrative penalty of not more than $100 for each   violation.          (e)  If the commission finds that an employer violated   Section 83.017, the commission shall award to the employee all   appropriate relief, including payment for used paid sick leave,   rehiring or reinstatement to the employee's previous job, payment   of back wages, and reestablishment of employee benefits for which   the employee otherwise would have been eligible if the employee had   not been subject to retaliatory personnel action or other   discrimination.          (f)  A complaint under this section must be brought not later   than the second anniversary of the date of the violation.          Sec. 83.019.  INFORMATION FROM AND OUTREACH BY COMMISSION.   (a) The commission shall make available to the public on the   commission's Internet website information regarding:                (1)  the requirements of and the rights and remedies   under this chapter; and                (2)  best practices for employers with respect to paid   sick leave.          (b)  The commission may conduct additional public outreach   efforts to inform employees and the public about this chapter.          SECTION 2.  (a) The change in law made by this Act applies to   an employee hired on or after January 1, 2027. For an employee   hired before January 1, 2027, paid sick leave under Chapter 83,   Labor Code, as added by this Act, begins to accrue on that date, and   the employee may begin to use the paid sick leave 90 calendar days   after that date, unless the employer agrees to an earlier date.          (b)  Chapter 83, Labor Code, as added by this Act, does not   preempt or override the terms of any collective bargaining   agreement effective before January 1, 2027.          SECTION 3.  Not later than September 1, 2026, the Texas   Workforce Commission shall:                (1)  prescribe the form and content of the notice   required by Section 83.010(c), Labor Code, as added by this Act;                (2)  post on the commission's Internet website the   information required by Section 83.019(a), Labor Code, as added by   this Act; and                (3)  adopt rules necessary to implement Chapter 83,   Labor Code, as added by this Act.          SECTION 4.  (a)  Except as provided by Subsection (b) of this   section, this Act takes effect January 1, 2027.          (b)  Section 3 of this Act takes effect September 1, 2025.