Global Compliance Desk – Austin, Texas

Texas Court of Appeals Rules Austin’s Paid Sick Leave Ordinance Unconstitutional

The Austin-based 3rd Court of Appeals declared Austin’s paid sick leave ordinance unconstitutional on November 16, 2018, saying the ordinance is preempted by the State’s Minimum Wage Law.  The Texas Minimum Wage Act specifically precludes municipalities from regulating the wages paid by employers who are subject to the Fair Labor Standards Act (FLSA) and specifically provides that the Texas Minimum Wage Act supersedes a “wage” established in an ordinance governing wages in private employment.

In a 24-page opinion, a three-judge panel ordered a district court judge who originally heard the case to issue a temporary injunction against the ordinance. The ordinance was passed by the Austin City Council in February, it was the first of its kind in Texas. It requires most employers to offer eight days of earned sick leave for a year of work, or six days for employees of businesses with fewer than 15 employees.

The ordinance was originally scheduled to take effect on Oct. 1, 2018, but was temporarily blocked by a Texas appeals court on Aug. 17, 2018. Several business organizations argued it directly violates the Texas Minimum Wage Act and would cost too much to implement its requirements.

The district court will not be able to enter an order contrary to the court of appeals’ order. The City of Austin can ask for reconsideration by the entire court of appeals or seek review by the Supreme Court of Texas.

Sajid Mir
ABOUT THE AUTHOR
Sajid Mir
A labor and employment lawyer at Replicon who specializes in global compliance. Replicon provides award-winning products that make it easy to manage your workforce. Replicon is an industry leader in global compliance and has a dedicated team which pro-actively monitors international labor regulations for ensuring proper adherence with specific country rule requirements.
Get started today.
Set up a free trial based on your business needs. Start Free Trial

Top Challenges that Large Services Organizations Need to Tackle Now

Unforeseen market dynamics, the rise of disruptive technologies, new business models, and global competition are transforming the business landscape, especially large services organizations. As revenue growth slows down, professional services…Read More

Top 5 Mobile Timesheets On the Go to Make You More Productive in 2022

Time tracking software is the backbone of every company when it comes to recording time and attendance as well as project management. The demand for such software is always increasing…Read More

How can Large Service Organizations Maximize Resource Utilization to Drive Higher Project Profitability

Large services organizations are facing several challenges in their business. On one hand, they need to maintain a flexible hybrid workplace that supports collaborations and can bridge the gap and…Read More

Using shared services? These five technologies are a must

As organizations continue to scrutinize operating costs and look for areas to drive efficiencies, shared services centers (SSCs) are a no-brainer. The concept of a multi-function SSC has been around…Read More

Employee time tracking is dead

iBeacons, Bluetooth Low Energy, Proximity sensing and the obsolescence of time tracking as we know it. Businesses have to track the time their employees work for a variety of reasons,…Read More

Reducing Absenteeism with Effective Time Management and Absence Tracking

Workplace absenteeism is a major concern for American companies. According to the US Bureau of Labor Statistics, unplanned absences cost American businesses an average of 2.8 million workdays every year,…Read More
  • Polaris
  • Time & Project Insights
  • Time & Projects Solutions
  • Replicon Products
  • Replicon Users
  • Enterprise Time Tracking
  • Cloud
  • Corporate
  • Professional Services Management
  • Shared Services Management
  • Time and Attendance Management
  • Customer Feature
  • Time Intelligence
  • Industry News
  • Global Compliance Updates
  • Others