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.