| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the establishment of a paid parental leave program |
|
|
administered by the Texas Workforce Commission; imposing an |
|
|
employer contribution. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subtitle B, Title 4, Labor Code, is amended by |
|
|
adding Chapter 320 to read as follows: |
|
|
CHAPTER 320. PAID PARENTAL LEAVE FOR CERTAIN EMPLOYEES |
|
|
Sec. 320.001. DEFINITIONS. In this chapter: |
|
|
(1) "Employee" means an individual who performs |
|
|
services in this state for an employer for compensation under a |
|
|
contract for hire, whether express or implied. The term does not |
|
|
include an independent contractor or a state employee to which |
|
|
Section 661.9125, Government Code, applies. |
|
|
(2) "Employer" means a person that employs one or more |
|
|
employees. |
|
|
(3) "Program" means the Texas Family Fund Program |
|
|
established under Section 320.002. |
|
|
Sec. 320.002. ESTABLISHMENT OF PROGRAM; RULEMAKING. (a) |
|
|
The commission shall establish the Texas Family Fund Program to |
|
|
administer, distribute payments for, and assess contributions for |
|
|
paid parental leave under this chapter. |
|
|
(b) The commission shall adopt rules as necessary to |
|
|
implement this chapter. |
|
|
Sec. 320.003. PAID PARENTAL LEAVE FOR CERTAIN EMPLOYEES. |
|
|
(a) This section applies only to an employee who: |
|
|
(1) is employed by an employer that: |
|
|
(A) employs at least 50 employees; or |
|
|
(B) voluntarily makes a contribution on wages |
|
|
under Section 320.005; and |
|
|
(2) during the preceding 12 months, has worked for the |
|
|
employer: |
|
|
(A) not less than 1,540 hours and on a full-time |
|
|
basis; or |
|
|
(B) if the employee is not classified by the |
|
|
employer as a full-time employee, not less than 30 hours per week. |
|
|
(b) For purposes of Subsection (a), an hour for which an |
|
|
employee uses paid or unpaid leave not described by this section is |
|
|
considered an hour the employee worked for the employer. |
|
|
(c) Subject to Subsection (d), an employee to whom this |
|
|
section applies is entitled, on request, to: |
|
|
(1) 40 days of paid leave for the birth of a child by |
|
|
the employee; or |
|
|
(2) 20 days of paid leave for the: |
|
|
(A) birth of a child by the employee's spouse; |
|
|
(B) birth of a child by a gestational surrogate; |
|
|
(C) adoption of a child; or |
|
|
(D) provision of foster care or kinship care to a |
|
|
child younger than one year of age who is in the conservatorship of |
|
|
the Department of Family and Protective Services. |
|
|
(d) The amount of paid leave to which an employee is |
|
|
entitled under Subsection (c) for each week of leave taken under |
|
|
that subsection is an amount equal to the lesser of: |
|
|
(1) the employee's average weekly wage during the |
|
|
12-month period preceding the first day that the employee takes |
|
|
leave under that subsection; or |
|
|
(2) the state average weekly wage as determined under |
|
|
Section 408.047 during the most recent complete calendar quarter |
|
|
preceding the first day that the employee takes leave under that |
|
|
subsection. |
|
|
(e) This section does not entitle an employee to leave in |
|
|
addition to any leave the employee is entitled to under the federal |
|
|
Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et |
|
|
seq.). An employee is not entitled to paid leave under this section |
|
|
for any period during which the employee is taking other paid leave. |
|
|
(f) An employee may not take leave under this section: |
|
|
(1) later than the first anniversary of the date of |
|
|
birth or adoption of a child or placement of a child in foster care |
|
|
or kinship care; or |
|
|
(2) more than one time during a 12-month period. |
|
|
(g) An employer may not take an adverse employment action |
|
|
against an employee because the employee has taken or plans to take |
|
|
paid leave under this section. For purposes of this subsection, |
|
|
"adverse employment action" includes termination or suspension of |
|
|
the employee's employment, an action that affects the employee's |
|
|
compensation, promotion, or performance evaluation, or any other |
|
|
employment action that would dissuade a reasonable employee from |
|
|
taking paid leave under this chapter. |
|
|
Sec. 320.004. EMPLOYER CONTRIBUTION. (a) Except as |
|
|
provided by Subsection (d), an employer shall pay a contribution on |
|
|
wages paid to an employee to whom Section 320.003 applies during a |
|
|
calendar quarter in an amount equal to 0.15 percent of the wages |
|
|
paid by the employer to the employee during the calendar quarter. |
|
|
(b) The contribution shall be paid to the commission in |
|
|
accordance with rules adopted by the commission. |
|
|
(c) An employer may deduct not more than 50 percent of the |
|
|
amount of a contribution under this section from the wages of the |
|
|
employee. |
|
|
(d) This section does not apply to: |
|
|
(1) an employer that maintains a self-funded policy |
|
|
that provides leave to employees who meet the requirements of |
|
|
Section 320.003; or |
|
|
(2) the amount of wages paid to an employee during a |
|
|
calendar year that is more than the maximum amount of wages for |
|
|
which an employee is subject to taxation for that year under the |
|
|
federal Social Security Act (42 U.S.C. Section 430), as calculated |
|
|
under Section 230 of that Act. |
|
|
Sec. 320.005. VOLUNTARY PARTICIPATION BY CERTAIN |
|
|
EMPLOYERS. Notwithstanding any other provision of this chapter, an |
|
|
employer that employs less than 50 employees may pay a contribution |
|
|
on wages in the amount and manner described by Section 320.004. |
|
|
Sec. 320.006. ADMINISTRATION OF CONTRIBUTIONS. (a) On |
|
|
receipt of contributions under Section 320.004 or 320.005, the |
|
|
commission shall forward the contributions to the comptroller. |
|
|
(b) The comptroller shall immediately deposit contributions |
|
|
under this chapter in the Texas Family Fund. |
|
|
Sec. 320.007. TEXAS FAMILY FUND. (a) The Texas Family Fund |
|
|
is a special fund. |
|
|
(b) The fund consists of: |
|
|
(1) contributions collected under this chapter; |
|
|
(2) interest earned on money in the fund; and |
|
|
(3) other money received for the fund from any other |
|
|
source. |
|
|
(c) Benefits are due and payable only to the extent money is |
|
|
available for that purpose in the fund. This state and the |
|
|
commission are not liable for any amount in excess of the amount in |
|
|
the fund. |
|
|
(d) The comptroller may use money in the fund to pay the |
|
|
necessary and reasonable expenses of administering the fund, not to |
|
|
exceed in any year four percent of the money received for the fund |
|
|
under Subsection (b) in that year. |
|
|
SECTION 2. Not later than January 1, 2026, the Texas |
|
|
Workforce Commission shall: |
|
|
(1) establish the Texas Family Fund Program in |
|
|
accordance with Section 320.002, Labor Code, as added by this Act; |
|
|
and |
|
|
(2) adopt rules necessary to implement Chapter 320, |
|
|
Labor Code, as added by this Act. |
|
|
SECTION 3. (a) An employee is not entitled to paid leave |
|
|
under Chapter 320, Labor Code, as added by this Act, before January |
|
|
1, 2027. |
|
|
(b) Section 320.003, Labor Code, as added by this Act, |
|
|
applies only to the birth or adoption of a child or placement of a |
|
|
child in foster care or kinship care that occurs on or after January |
|
|
1, 2027. |
|
|
(c) Section 320.004, Labor Code, as added by this Act, |
|
|
applies beginning January 1, 2026. |
|
|
SECTION 4. This Act takes effect September 1, 2025. |