Zaffirini Paid Leave Bill Pays Benefits Only While The Fund Lasts

The text as introduced · 907 words

89R9580 RDS-F

By: Zaffirini
S.B. No. 2072

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 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 has worked for an

employer:

(1) not less than 540 hours during the preceding six

months; or

(2) on a full-time basis during the preceding three

months.

(b) Subject to Subsections (c) and (d), an employee is

entitled to 12 weeks of paid leave funded by the program for the:

(1) birth of a child;

(2) birth of a child by the employee's spouse;

(3) birth of a child by a gestational surrogate; or

(4) adoption of a child.

(c) An employee who takes paid leave under Subsection (b) is

entitled to paid leave for each week of paid leave taken under that

subsection in an amount equal to:

(1) 100 percent of the employee's weekly wage if the

employee is paid:

(A) an hourly rate that is not greater than $15 an

hour; or

(B) an annual salary as a full-time employee that

is not greater than $31,200;

(2) 95 percent of the employee's weekly wage if the

employee is paid:

(A) an hourly rate that is more than $15 an hour

and not greater than $20 an hour; or

(B) an annual salary as a full-time employee that

is more than $31,200 and not greater than $41,600; or

(3) 80 percent of the employee's weekly wage or $1,000,

whichever amount is less, if the employee is paid:

(A) an hourly rate that is more than $20 an hour;

or

(B) an annual salary as a full-time employee that

is more than $41,600.

(d) 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.

(e) An employee who qualifies for leave under this section

under Subsection (a)(1) only may not take leave under this section:

(1) later than the first anniversary of the date of

birth or adoption of a child described by Subsection (b); and

(2) more than one time during a 12-month period.

Sec. 320.004. EMPLOYER CONTRIBUTION. (a) Except as

provided by Subsection (d), an employer shall pay a contribution on

wages paid during a calendar year. The contribution shall be paid to

the commission in accordance with rules adopted by the commission.

(b) An employer's contribution under Subsection (a) is an

amount equal to 0.15 percent of all wages paid by the employer

during the calendar year.

(c) An employer may not deduct any part of a contribution

under this section from the wages of an individual.

(d) This section does not apply to an employer that

maintains a self-funded paid leave policy.

Sec. 320.005. ADMINISTRATION OF CONTRIBUTIONS. (a) On

receipt of contributions under Section 320.004, the commission

shall forward the contributions to the comptroller.

(b) The comptroller shall immediately deposit contributions

under this chapter in the Texas Family Fund.

(c) The comptroller is custodian of the Texas Family Fund

and shall administer the fund in accordance with the directions of

the commission. The comptroller shall issue warrants on the Texas

Family Fund for the payment of paid leave under this chapter in

accordance with rules adopted by the commission.

Sec. 320.006. 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.

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. An employee is not entitled to paid leave under

Chapter 320, Labor Code, as added by this Act, before September 1,

2026.

SECTION 4. This Act takes effect September 1, 2025.