JJG S.B. 167 75(R)BILL ANALYSIS


ECONOMIC DEVELOPMENT
S.B. 167
By: Harris (Smith)
5-15-97
Committee Report (Unamended)



BACKGROUND 
Currently, Section 61.019, Labor Code, provides that an employer commits a
third degree felony when the employer fails to pay wages demanded by an
employee, and the employer had hired the employee with no intention of
paying such wages. Texas law is unclear as to whether an employer who
deliberately intends not to pay an employee's wages, but continues to
employ that employee, is subject to any penalty. This bill would expand
the employer's liability to include instances in which the employer
intentionally avoids payment of wages to an employee who continues to work
for the employer and unsuccessfully demands payment of such wages. 

PURPOSE
As proposed, S.B. 167 expands the criminal liability of employers who fail
to pay employees in instances in which the employee continues to work for
the employer and makes a demand for such wages. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 61.019, Labor Code, by amending Subsection (b)
and by adding Subsections (c) and (d), to provide that an employer commits
a third degree felony if the employer intentionally avoids payment of
wages owed to an employee; continues to employ the employee; and fails,
after demand, to pay those wages. Provides that an employer commits a
separate third degree felony for each pay period in which the employee
earns wages that the employer fails to pay. Makes a conforming change. 
SECTION 2. Makes application of this Act prospective.
SECTION 3. Effective date: September 1, 1997.
SECTION 4. Emergency clause.