Tax News Update    Email this document    Print this document  

The city of San Antonio, Texas announced that the effective date for its paid sick leave ordinance, originally effective August 1, 2019, is delayed to December 1, 2019.

As we reported earlier this month, a San Antonio business coalition filed a lawsuit to stop San Antonio's paid sick leave ordinance from taking effect on August 1, 2019. (EY Payroll Newsflash Vol. 20, #095, 7-19-2019.)

Under the ordinance, 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.)

Dallas paid sick leave ordinance to also be challenged

News sources are reporting that a court challenge to the Dallas paid sick leave ordinance, scheduled to take effect August 1, 2019, is forthcoming. The Dallas ordinance mirrors San Antonio's ordinance. (Dallas Morning News article; Dallas Observer article.)

It's reported that the Texas Public Policy Foundation recently sent a letter to the city stating that, to avoid a lawsuit, the city should delay its effective date to December 1, 2019. However, the city's website continues to show an effective date of August 1, 2019, meaning that Dallas businesses of six or more employees should be prepared to comply as of Thursday, August 1, 2019, unless the city capitulates in the next few days.

The city Office of Equity & Human Rights' frequently asked questions about the ordinance states the following regarding employer sanctions:

"For employers with 6 or [more] employees, except for violations of the anti-retaliation provision, the City of Dallas will not enforce the Earned Paid Sick Time Ordinance until April 1, 2020. Even if an employee properly files a complaint within 2 years of the alleged violation, the Office will not investigate complaints of alleged violations that occur between August 1, 2019 and April 1, 2020 or enforce the ordinance during that period. For employers with 5 or fewer employees, no part of the Ordinance, including enforcement, goes into effect until August 1, 2021."

A mandatory poster is available on the city's website.

Ernst & Young LLP insights

Austin was the first Texas city to pass a paid sick leave ordinance, followed by San Antonio and Dallas. 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 legislation could be enacted.

———————————————

———————————————
ATTACHMENT

EY Payroll News Flash