News sources are reporting that a San Antonio business coalition has filed a lawsuit to stop San Antonio's paid sick leave ordinance from taking effect on August 1, 2019. (San Antonio Business Journal; The Texas Tribune.)

As we reported, effective August 1, 2019, private San Antonio employers with more than 15 employees must provide a minimum of 64 hours of paid sick leave a year to their employees by allowing them to accrue one hour of sick leave for every 30 hours worked. Employers with 15 or fewer employees must provide 48 hours per employee per year, unless the employer chooses a higher limit.

The mandatory effective date of the paid sick leave requirement is delayed to August 1, 2021 for employers with five or fewer employees. (EY Payroll Newsflash Vol. 19, #145, 9-13-2018.)

It remains to be seen if the lawsuit will halt the effective date.

Ernst & Young LLP insights

Austin was the first city in Texas to pass a paid sick leave ordinance, followed by San Antonio, and recently Dallas. Dallas's paid sick leave ordinance is also effective August 1, 2019. As we reported, Austin's paid sick leave ordinance is on hold until a legal battle is resolved. (EY Payroll Newsflash Vol. 19, #197, 12-5-2018.)

Texas state legislators had vowed to pass legislation in 2019 that would preempt Texas cities/localities from enforcing paid sick leave ordinances. However, the legislative session adjourned before the legislation was enacted.

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EY Payroll News Flash