On Monday, July 15, the Associated Builders & Contractors of South Texas, joined by several other business groups, filed suit against the City of San Antonio seeking to block the implementation of the Paid Sick Leave ordinance set to go into effect, for most businesses, on August 1, 2019. The lawsuit alleges, like the Austin case pending in the Texas Supreme Court, that the ordinance violates the Texas Minimum Wage Act. An injunction hearing is set for July 24, 2019, at 9 a.m. If the court issues the injunction, the San Antonio ordinance will likely be put on hold while this continues to work its way through the courts.
Meanwhile, in Dallas, the City has still not issued any regulations which were promised at last week’s informational session. These regulations will hopefully give employers more clarity on the ordinance. No lawsuit has been filed yet to postpone the effective date of the Dallas ordinance, which also goes into effect on August 1, 2019.
This is an evolving issue, and FordHarrison will continue to keep you updated. While we recommend that employers become familiar with these ordinances and be prepared to implement compliant policies for Dallas and San Antonio employees by August 1, employers should delay announcing any changes to their policies as long as possible to see how these legal challenges play out.