Morales Shaw Bill’s ‘Employer Contribution’ Can Come Out Of Paychecks

The text as introduced · 1,174 words

89R5049 RDS-F

By: Morales Shaw
H.B. No. 3059

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.