By Garcia, et al.                                     H.B. No. 2400

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to family and medical leave for certain employees;

 1-3     providing a civil penalty.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subtitle D, Title 2, Labor Code, is amended by

 1-6     adding Chapter 84 to read as follows:

 1-7                    CHAPTER 84.  FAMILY AND MEDICAL LEAVE

 1-8           Sec. 84.001.  DEFINITIONS.  In this chapter:

 1-9                 (1)  "Child" means a biological child, adopted or

1-10     foster child, stepchild, legal ward, or child of a person standing

1-11     in loco parentis who is:

1-12                       (A)  under 18 years of age; or

1-13                       (B)  18 years of age or older and incapable of

1-14     self-care because of a physical or mental disability or serious

1-15     health condition.

1-16                 (2)  "Commission" means the Texas Workforce Commission.

1-17                 (3)  "Employee" means an individual who performs

1-18     services for an employer for compensation.  The term does not

1-19     include an independent contractor.

1-20                 (4)  "Employer" means a person who employs employees.

1-21                 (5)  "Employment benefits" means all benefits provided

1-22     by or made available to employees by an employer.  The term

1-23     includes group life insurance, health insurance, disability

1-24     insurance, sick leave, annual leave, educational benefits, and

 2-1     pensions, whether the benefits are provided by a practice or

 2-2     written policy of an employer or through an employee benefit plan.

 2-3                 (6)  "Employee benefit plan" has the meaning assigned

 2-4     by Section 3(3), Employee Retirement Income Security Act of 1974

 2-5     (29 U.S.C. Sec. 1002(3)).

 2-6                 (7)  "Health care provider" means:

 2-7                       (A)  a licensed individual who provides or

 2-8     renders health care; or

 2-9                       (B)  an unlicensed individual who provides or

2-10     renders health care under the direction or supervision of a

2-11     physician.

2-12                 (8)  "Parent" means:

2-13                       (A)  the biological parent of an employee; or

2-14                       (B)  an individual who stood in loco parentis to

2-15     an employee when the employee was a child.

2-16                 (9)  "Reduced leave schedule" means leave that reduces

2-17     the usual number of hours worked per workweek, or hours per

2-18     workday, of an employee.

2-19                 (10)  "Serious health condition" means an illness,

2-20     injury, impairment, or physical or mental condition that requires

2-21     inpatient care in a hospital, hospice, or residential medical care

2-22     facility, or continuing treatment by a health care provider.  The

2-23     term includes a serious disease such as cancer or acquired immune

2-24     deficiency syndrome.

2-25           Sec. 84.002.  APPLICATION OF CHAPTER; ELIGIBLE EMPLOYEES.

2-26     (a)  This chapter applies to each employer who employs 50 or more

2-27     employees in this state.

 3-1           (b)  To be eligible for family and medical leave from an

 3-2     employer under this chapter, an employee must:

 3-3                 (1)  be employed for at least 12 months by the employer

 3-4     from whom the leave is requested; and

 3-5                 (2)  work for at least 1,250 hours for that employer

 3-6     during those 12 months.

 3-7           (c)  Notwithstanding Subsections (a) and (b), an employee who

 3-8     is employed at a worksite of an employer at which the employer

 3-9     employs fewer than 50 employees is not eligible for family and

3-10     medical leave under this chapter if the total number of employees

3-11     employed by that employer within 75 miles of that worksite is fewer

3-12     than 50 employees.

3-13           Sec. 84.003.  FAMILY AND MEDICAL LEAVE.  (a)  Except as

3-14     provided by Section 84.008, an eligible employee is entitled to a

3-15     total of 12 workweeks of leave during any 12-month period because

3-16     of one or more of the following:

3-17                 (1)  the birth of a child of the employee if the leave

3-18     is required to care for that child;

3-19                 (2)  the placement of a child with the employee for

3-20     adoption or foster care;

3-21                 (3)  to care for the spouse, child, or parent of the

3-22     employee, if the spouse, child, or parent has a serious health

3-23     condition; or

3-24                 (4)  a serious health condition that makes the employee

3-25     unable to perform the functions of the position of employment of

3-26     the employee.

3-27           (b)  Entitlement to leave under Subsection (a) for a birth or

 4-1     placement of a child expires on the first anniversary of the date

 4-2     of the birth or placement.

 4-3           (c)  An employee may not take leave under Subsection (a)(1)

 4-4     or (a)(2) intermittently unless the employee and the employer of

 4-5     the employee agree in writing to that leave.  An employee may take

 4-6     leave under Subsection (a)(3) or (a)(4) intermittently when that

 4-7     leave is medically necessary.

 4-8           (d)  If an employee requests intermittent leave under

 4-9     Subsection (a)(3) or (a)(4) that is foreseeable because of planned

4-10     medical treatment, the employer may require the employee to

4-11     transfer temporarily to an available alternative position offered

4-12     by the employer for which the employee is qualified and that:

4-13                 (1)  has equivalent pay and benefits; and

4-14                 (2)  better accommodates recurring periods of leave

4-15     than the regular employment position of the employee.

4-16           (e)  On the written agreement of the employer and the

4-17     employee, an employee may take leave under Subsection (a) on a

4-18     reduced leave schedule.  Work performed by an employee on a reduced

4-19     leave schedule does not reduce the total amount of leave to which

4-20     the employee is entitled under Subsection (a).

4-21           (f)  Each employer shall post in conspicuous places on the

4-22     premises of the employer where notices to employees and applicants

4-23     for employment are customarily posted, a notice, prepared or

4-24     approved by the commission, setting forth the pertinent provisions

4-25     of this chapter and information relating to the enforcement of this

4-26     chapter.  An employer who wilfully violates this subsection is

4-27     liable for a civil penalty not to exceed $100 for each violation.

 5-1     The attorney general may bring an action to collect a civil penalty

 5-2     under this section.  Civil penalties assessed under this section

 5-3     shall be deposited in the general revenue fund.

 5-4           Sec. 84.004.  UNPAID LEAVE PERMITTED.  (a)  Except as

 5-5     provided by Subsection (b), leave granted under Section 84.003 may

 5-6     consist of unpaid leave.

 5-7           (b)  If an employer provides paid leave for fewer than 12

 5-8     workweeks, any additional weeks of leave necessary to comply with

 5-9     the 12 workweeks of leave required under this chapter may be

5-10     provided by the employer without compensation.

5-11           Sec. 84.005.  SUBSTITUTION OF PAID LEAVE.  (a)  An eligible

5-12     employee may elect, or an employer may require an employee, to

5-13     substitute accrued paid vacation leave, personal leave, or other

5-14     leave for leave provided under Section 84.003(a)(1), (2), or (3)

5-15     for any part of the 12 weeks of leave required under Section

5-16     84.003.

5-17           (b)  An eligible employee may elect, or an employer may

5-18     require an employee, to substitute accrued paid vacation leave,

5-19     personal leave, or medical or sick leave for leave provided under

5-20     Section 84.003(a)(3) or (4) for any part of the 12 weeks of leave

5-21     required under Section 84.003.  However, this chapter does not

5-22     require an employer to provide paid sick leave or paid medical

5-23     leave in any situation in which that employer would not normally

5-24     provide paid leave.

5-25           Sec. 84.006.  FORESEEABILITY OF LEAVE; NOTICE.  (a)  If the

5-26     necessity for leave under Section 84.003(a)(1) or (2) is

5-27     foreseeable because of an expected birth or adoption, the affected

 6-1     employee shall, at least 30 days before the date the leave is to

 6-2     begin, notify the employer in writing of the employee's intention

 6-3     to take the leave.  If the date of the birth or adoption requires

 6-4     that the leave begin in less than 30 days, the employee shall

 6-5     provide notice to the employer as is practicable.

 6-6           (b)  If the necessity for leave under Section 84.003(a)(3) or

 6-7     (4) is foreseeable because of planned medical treatment, the

 6-8     employee shall:

 6-9                 (1)  make a reasonable effort to schedule the treatment

6-10     to avoid disrupting unduly the operations of the employer, subject

6-11     to the approval of the health care provider of the employee or of

6-12     the child, spouse, or parent of the employee, as applicable; and

6-13                 (2)  at least 30 days before the date the leave is to

6-14     begin, notify the employer in writing of the employee's intention

6-15     to take the leave; provided that if the date of the treatment

6-16     requires that the leave begin in less than 30 days, the employee

6-17     shall provide notice to the employer as is practicable.

6-18           Sec. 84.007.  SPOUSES EMPLOYED BY SAME EMPLOYER.  If a

6-19     husband and wife entitled to leave under Section 84.003 are

6-20     employed by the same employer, the aggregate number of workweeks of

6-21     leave to which both may be entitled may be limited to 12 workweeks

6-22     during any 12-month period, if the leave is taken:

6-23                 (1)  under Section 84.003(a)(1) or (2); or

6-24                 (2)  to care for a sick parent under Section

6-25     84.003(a)(3).

6-26           Sec. 84.008.  CERTIFICATION.  (a)  An employer may require

6-27     that a request for leave under Section 84.003(a)(3) or (4) be

 7-1     certified by the health care provider of the eligible employee or

 7-2     of the child, spouse, or parent of the employee, as appropriate.

 7-3     The employee shall provide, in a timely manner, a copy of the

 7-4     certification to the employer.

 7-5           (b)  Certification provided under Subsection (a) is

 7-6     sufficient if it states:

 7-7                 (1)  the date on which the serious health condition

 7-8     began;

 7-9                 (2)  the probable duration of the condition;

7-10                 (3)  the appropriate medical facts within the knowledge

7-11     of the health care provider regarding the condition;

7-12                 (4)  for purposes of leave under Section 84.003(a)(3),

7-13     a statement that the eligible employee is needed to care for the

7-14     child, spouse, or parent and an estimate of the amount of time that

7-15     the employee is needed to care for the child, spouse, or parent;

7-16                 (5)  for purposes of leave under Section 84.003(a)(4),

7-17     a statement that the employee is unable to perform the functions of

7-18     the position of employment; and

7-19                 (6)  for purposes of intermittent leave for planned

7-20     medical treatment, the dates on which the treatment is expected to

7-21     be given and the duration of the treatment.

7-22           (c)  If the employer has reason to doubt the validity of the

7-23     certification provided under Subsection (a) for leave under Section

7-24     84.003(a)(3) or (4), the employer may require, at the expense of

7-25     the employer, that the eligible employee obtain the opinion of a

7-26     second health care provider designated or approved by the employer

7-27     concerning any information certified under Subsection (b).  A

 8-1     health care provider designated or approved under this subsection

 8-2     may not be employed on a regular basis by the employer.

 8-3           (d)  If a second opinion obtained under Subsection (c)

 8-4     differs from the opinion in the original certification provided

 8-5     under Subsection (a), the employer may require, at the expense of

 8-6     the employer, that the employee obtain the opinion of a third

 8-7     health care provider designated or approved jointly by the employer

 8-8     and the employee concerning the information certified under

 8-9     Subsection (b).  The opinion of the third health care provider is

8-10     final and binding on the employer and the employee.

8-11           (e)  The employer may require that the eligible employee

8-12     obtain subsequent recertifications on a reasonable basis.

8-13           Sec. 84.009.  EMPLOYMENT AND BENEFITS PROTECTION; EXCEPTION.

8-14     (a)  An eligible employee who takes leave under Section 84.003 for

8-15     the intended purpose of the leave is entitled, on return from the

8-16     leave, to reinstatement in the former position of employment or an

8-17     equivalent position of employment with equivalent employment

8-18     benefits, pay, and other terms and conditions of employment.

8-19           (b)  Leave taken under Section 84.003 may not result in the

8-20     loss of any employment benefit accrued before the date on which the

8-21     leave began.

8-22           (c)  This section does not entitle an employee who is

8-23     reinstated in employment to:

8-24                 (1)  the accrual of seniority or other employment

8-25     benefits during any period of leave; or

8-26                 (2)  any right, benefit, or position of employment

8-27     other than any right, benefit, or position to which the employee

 9-1     would have been entitled had the employee not taken the leave.

 9-2           (d)  As a condition of eligibility to return to employment

 9-3     under Subsection (a), an employer may adopt a uniformly applied

 9-4     practice or policy that requires an employee to receive

 9-5     certification from a health care provider that the employee is able

 9-6     to resume work.  This subsection does not supersede a statute of

 9-7     this state, an order or ordinance of a political subdivision of

 9-8     this state, or a collective bargaining agreement that governs the

 9-9     return to work of an employee taking leave under Section

9-10     84.003(a)(4).

9-11           (e)  This section does not prohibit an employer from

9-12     requiring an employee on leave under Section 84.003 to report

9-13     periodically to the employer on the status and intention of the

9-14     employee to return to work.

9-15           (f)  An employer is not required under this chapter to

9-16     reinstate an employee under Subsection (a) if the employee is a

9-17     salaried employee whose compensation from the employer is computed

9-18     to be in the highest 10 percent of compensation paid to the

9-19     employees employed by that employer within 75 miles of the facility

9-20     at which the employee is employed.

9-21           Sec. 84.010.  MAINTENANCE OF HEALTH INSURANCE BENEFITS.  (a)

9-22     Except as provided by Subsection (b), during any period that an

9-23     eligible employee takes leave under Section 84.003, the employer

9-24     shall maintain insurance coverage for that employee under any

9-25     applicable group health plan for the duration of the leave at the

9-26     level and under the conditions the coverage would have been

9-27     provided if the employee had continued in employment continuously

 10-1    from the date on which the employee began the leave until the date

 10-2    on which the employee returned to employment under Section 84.009.

 10-3          (b)  The employer may recover the premium that the employer

 10-4    paid to maintain insurance coverage for the employee under the

 10-5    group health plan during any period of unpaid leave taken under

 10-6    Section 84.003 if the employee fails to return to work:

 10-7                (1)  after the period of leave to which the employee is

 10-8    entitled has expired; and

 10-9                (2)  for a reason other than:

10-10                      (A)  the continuation, recurrence, or onset of a

10-11    serious health condition that entitles the employee to leave under

10-12    Section 84.003(a)(3) or (4); or

10-13                      (B)  other circumstances beyond the control of

10-14    the employee.

10-15          (c)  An employer may require that a claim that an employee is

10-16    unable to return to work because of the continuation, recurrence,

10-17    or onset of a serious health condition be certified by:

10-18                (1)  the health care provider of the eligible employee,

10-19    if the employee is unable to return to work because of a condition

10-20    specified under Section 84.003(a)(4); or

10-21                (2)  the health care provider of the child, spouse, or

10-22    parent of the employee if the employee is unable to return to work

10-23    because of a condition specified under Section 84.003(a)(3).

10-24          (d)  The employee shall provide, in a timely manner, a copy

10-25    of the certification to the employer.

10-26          (e)  Certification required under Subsection (c)(1) is

10-27    sufficient if the certification states that a serious health

 11-1    condition made the employee unable to perform the functions of the

 11-2    position of employment on the date that the leave expired.

 11-3    Certification required under Subsection (c)(2) is sufficient if the

 11-4    certification states that the employee is needed to care for the

 11-5    child, spouse, or parent because of the serious health condition in

 11-6    effect on the date that the leave expired.

 11-7          (f)  For the purposes of this section, "group health plan"

 11-8    has the meaning assigned by Section 5000(b)(1), Internal Revenue

 11-9    Code of 1986 (26 U.S.C.  Sec. 5000(b)(1)).

11-10          Sec. 84.011.  APPLICATION TO EMPLOYEES OF CERTAIN EDUCATIONAL

11-11    INSTITUTIONS.  (a)  Except as otherwise provided by this section,

11-12    the rights, remedies, and procedures under this chapter apply to

11-13    the employees of a public or private elementary or secondary school

11-14    or school district.

11-15          (b)  If an eligible employee employed principally in an

11-16    instructional capacity by a school requests leave under Section

11-17    84.003(a)(3) or (4) that is foreseeable because of planned medical

11-18    treatment and that leave would exceed 20 percent of the total

11-19    number of working days in the applicable academic period, the

11-20    school may require that the employee elect to:

11-21                (1)  take the leave in periods of a particular

11-22    duration, not to exceed the duration of the planned medical

11-23    treatment; or

11-24                (2)  transfer temporarily to an available alternative

11-25    position offered by the employer for which the employee is

11-26    qualified and that:

11-27                      (A)  has equivalent pay and benefits; and

 12-1                      (B)  better accommodates recurring periods of

 12-2    leave than the regular employment position of the employee.

 12-3          (c)  An employee who makes an election under Subsection (b)

 12-4    must comply with Section 84.006(b).

 12-5          (d)  This subsection applies to periods of leave requested

 12-6    near the conclusion of an academic term in the case of an eligible

 12-7    employee employed principally in an instructional capacity by a

 12-8    school.  If the eligible employee begins leave under Section 84.003

 12-9    more than five weeks before the end of the academic term, the

12-10    school may require the employee to continue taking leave until the

12-11    end of that term if the leave lasts at least three weeks and the

12-12    return to employment would occur during the last three weeks of the

12-13    term.  If the eligible employee begins leave under Section

12-14    84.003(a)(1), (2), or (3) during the period that begins five weeks

12-15    before the end of the academic term, the school may require the

12-16    employee to continue taking leave until the end of that term if the

12-17    leave is longer than two weeks and the return to employment would

12-18    occur during the last two weeks of the  term.  If the eligible

12-19    employee begins leave under Section 84.003(a)(1), (2), or (3)

12-20    during the three weeks before the end of the academic term and the

12-21    leave lasts longer than five working days, the school may require

12-22    the employee to continue to take leave until the end of the term.

12-23          (e)  The determination required under Section 84.009(a) as to

12-24    placement in an equivalent position of employment shall be made on

12-25    the basis of established public school district policies and

12-26    practices, private school policies and practices, and any

12-27    applicable collective bargaining agreements.

 13-1          Sec. 84.012.  COMMISSION POWERS AND DUTIES.  (a)  The

 13-2    commission shall adopt rules as necessary to implement this

 13-3    chapter.  In adopting rules under this section, the commission may

 13-4    not adopt a rule that is inconsistent with:

 13-5                (1)  the Family and Medical Leave Act of 1993 (29

 13-6    U.S.C. Section 2601 et seq.); or

 13-7                (2)  a federal rule or regulation adopted under that

 13-8    Act.

 13-9          (b)  To ensure compliance with the provisions of this chapter

13-10    or any rule adopted under this chapter, the commission may conduct

13-11    investigations of employers subject to this chapter.  Each employer

13-12    subject to this chapter shall maintain records in accordance with

13-13    rules adopted by the commission.

13-14          (c)  The commission may not require an employer to submit

13-15    under this section books, records, or other information more

13-16    frequently than annually, unless the commission:

13-17                (1)  has reasonable cause to believe that the affected

13-18    employer has violated this chapter or a rule adopted under this

13-19    chapter; or

13-20                (2)  is investigating a charge under Section 84.014.

13-21          (d)  For the purposes of any investigation conducted under

13-22    this section, the commission may exercise the subpoena authority

13-23    granted under Subchapter E, Chapter 301.

13-24          Sec. 84.013.  PROHIBITED ACTS.  (a)  An employer may not

13-25    interfere with, restrain, or deny the exercise of or the attempt to

13-26    exercise any right provided under this chapter.

13-27          (b)  An employer may not discharge or otherwise discriminate

 14-1    against any individual for opposing a practice made unlawful by

 14-2    this chapter.

 14-3          (c)  A person may not discharge or otherwise discriminate

 14-4    against an individual because that individual has:

 14-5                (1)  filed a charge, or instituted or caused to be

 14-6    instituted a proceeding, under or related to this chapter;

 14-7                (2)  given, or is about to give, any information in

 14-8    connection with an inquiry or proceeding relating to a right

 14-9    provided under this chapter; or

14-10                (3)  testified, or is about to testify, in an inquiry

14-11    or proceeding relating to a right provided under this chapter.

14-12          Sec. 84.014.  ENFORCEMENT.  (a)  An employer who violates

14-13    Section 84.013 is liable to an affected eligible employee for

14-14    damages equal to the amount of:

14-15                (1)  any wages, salary, employment benefits, or other

14-16    compensation denied or lost to the employee by reason of the

14-17    violation, or, if wages, salary, employment benefits, or other

14-18    compensation have not been denied or lost to the employee, any

14-19    actual monetary losses sustained by the employee as a direct result

14-20    of the violation, including the cost of providing necessary care,

14-21    not to exceed an amount equal to the employee's wages or salary for

14-22    12 weeks;

14-23                (2)  interest on the amount determined under

14-24    Subdivision (1), computed at the prevailing rate of interest on

14-25    judgments; and

14-26                (3)  an additional amount as liquidated damages equal

14-27    to the sum of the amount determined under Subdivision (1) and the

 15-1    interest determined under Subdivision (2), provided that if an

 15-2    employer who has violated Section 84.013 proves to the satisfaction

 15-3    of the court that the act or omission that violated Section 84.013

 15-4    was in good faith and that the employer had reasonable grounds for

 15-5    believing that the act or omission was not a violation, the court

 15-6    may reduce the amount of damages to the amount determined under

 15-7    Subdivisions (1) and (2).

 15-8          (b)  The employer is also liable for equitable relief as

 15-9    appropriate, including employment, reinstatement, and promotion.

15-10          (c)  An action to recover damages or equitable relief under

15-11    this section may be maintained in a court of competent jurisdiction

15-12    by any one or more employees for and in behalf of those employees

15-13    or those employees and other employees similarly situated.

15-14          (d)  In addition to any judgment awarded to the plaintiff,

15-15    the court may require the defendant to pay reasonable attorney's

15-16    fees, reasonable expert witness fees, and other costs.

15-17          (e)  Unless the action is dismissed without prejudice on

15-18    motion of the commission, the right to bring an action under this

15-19    section terminates on:

15-20                (1)  the filing of a complaint by the commission in an

15-21    action under Subsection (i) in which:

15-22                      (A)  restraint is sought of any further delay in

15-23    the payment of the damages described in Subsection (a); or

15-24                      (B)  equitable relief is sought as a result of

15-25    alleged violations of Section 84.013; or

15-26                (2)  the filing of a complaint by the commission in an

15-27    action under Subsection (f) in which a recovery is sought of the

 16-1    damages described in Subsection (a).

 16-2          (f)  The commission shall receive, investigate, and attempt

 16-3    to resolve complaints of violations under Section 84.013 in the

 16-4    same manner that the commission receives, investigates, and

 16-5    attempts to resolve complaints of violations under Chapter 61.

 16-6          (g)  The commission may bring an action in a court of

 16-7    competent jurisdiction to recover on behalf of an eligible employee

 16-8    the damages described in Subsection (a).  Any amount recovered by

 16-9    the commission on behalf of an employee under this subsection shall

16-10    be held in a special deposit account and shall be paid, on order of

16-11    the commission, directly to each affected employee.  Any amount not

16-12    paid to an employee within three years of receipt because of

16-13    inability to make the payment shall be deposited in the state

16-14    treasury to the credit of the general revenue fund.

16-15          (h)  Except as otherwise provided by this subsection, an

16-16    action must be brought under this section not later than the second

16-17    anniversary of the date of the last event constituting the alleged

16-18    violation for which the action is brought.  If the action alleges a

16-19    wilful violation of Section 84.013, the action must be brought not

16-20    later than the third anniversary of the date of the last event

16-21    constituting the alleged violation.  In determining for the

16-22    purposes of this subsection when an action is begun by the

16-23    commission under Subsection (f), the action is begun on the date on

16-24    which the complaint is filed.

16-25          (i)  In addition to an action to recover damages, the

16-26    commission may bring an action to restrain violations of Section

16-27    84.013, including an action to restrain the withholding of payment

 17-1    of wages, salary, employment benefits, or other compensation, plus

 17-2    interest, found by the court to be due to eligible employees.

 17-3          SECTION 2.  EFFECTIVE DATE.  (a)  This Act takes effect

 17-4    September 1, 1997.

 17-5          (b)  An employee is not entitled to take leave as provided by

 17-6    Section 84.004, Labor Code, as added by this Act, before January 1,

 17-7    1998.

 17-8          (c)  The Texas Workforce Commission shall adopt rules and

 17-9    prescribe notices and forms as required by Chapter 84, Labor Code,

17-10    as added by this Act, not later than November 1, 1997.

17-11          SECTION 3.  EMERGENCY.  The importance of this legislation

17-12    and the crowded condition of the calendars in both houses create an

17-13    emergency   and   an   imperative   public   necessity   that   the

17-14    constitutional rule requiring bills to be read on three several

17-15    days in each house be suspended, and this rule is hereby suspended.