LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
 
April 5, 2015

TO:
Honorable René Oliveira, Chair, House Committee on Business & Industry
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB860 by Rodriguez, Eddie (Relating to employer retaliation against employees who seek recovery of unpaid wages and procedures in wage claim hearings conducted by the Texas Workforce Commission; providing administrative penalties.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB860, As Introduced: an impact of $0 through the biennium ending August 31, 2017.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016 $0
2017 $0
2018 $0
2019 $0
2020 $0




Fiscal Year Probable Revenue Gain from
Unempl Comp Sp Adm Acct
165
Probable (Cost) from
Unempl Comp Sp Adm Acct
165
Change in Number of State Employees from FY 2015
2016 $256,000 ($248,935) 2.8
2017 $256,000 ($228,280) 2.8
2018 $256,000 ($228,280) 2.8
2019 $256,000 ($228,280) 2.8
2020 $256,000 ($228,280) 2.8

Fiscal Analysis

This bill would amend the Labor Code relating to employer retaliation against employees who seek recovery of unpaid wages and procedures in wage claim hearings conducted by the Texas Workforce Commission; providing administrative penalties.
 
This bill would require TWC to create a complaint form necessary to implement an administrative process for investigating retaliation complaints. The bill would also require the administrative penalty against employers for retaliation to be included with the preliminary wage determination order which would provide appeal rights. The bill would provide for an administrative penalty against employers found to have retaliated against employees for seeking assistance in collecting unpaid wages. The bill would require the agency to adopt rules to implement the provisions of the bill.
 
This bill would take effect September 1, 2015.

Methodology

Based on information provided by TWC, it is estimated that the agency would receive approximately 320 annual retaliation complaints associated with the provisions of the bill. TWC would require 2.8 new investigators to handle the increased workload. The agency estimates that these positions would require recurring costs of $143,357 in salaries and $48,569 in related support and benefit costs each fiscal year, and an initial one-time start up cost of $5,385 for the purchase of technology equipment for the additional FTEs. Additional program costs include $36,354 in recurring costs and $15,270 in one-time start up costs in fiscal year 2016.
 
Estimated combined technology and administrative costs would total $248,935 in fiscal year 2016 and $228,280 in each subsequent fiscal year totaling $1,162,055 for the five year period.
 
TWC estimates that the mandatory $1,000 retaliation penalty created under the provisions of the bill would generate approximately $256,000 each year, which would be deposited in the Unemployment Insurance Special Administration Fund established under Subchapter E, Chapter 203, Texas Labor Code.

Technology

TWC estimates nonrecurring technology costs of $5,385 in fiscal year 2016 related to the purchase of equipment for the anticipated 2.8 FTEs needed to carry out the provisions of the bill.

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
320 Texas Workforce Commission
LBB Staff:
UP, CL, NV, JLi