By Robert G. Chadwick, Jr., Managing Member, Seltzer, Chadwick, Soefje & Ladik, PLLC.
[Update: On July 30, 2019 a lawsuit was filed in the U.S. District Court for the Eastern District of Texas to stop the Dallas ordinance from taking effect].
Earlier this year, Dallas became the third Texas municipality (after Austin and San Antonio) to enact a paid sick time ordinance applicable to private employers. Unlike the ordinances in Austin and San Antonio, this ordinance is now effective as of August 1, 2019. There is no corresponding Texas state law which mandates paid sick time in the private sector.
In July, the City of Dallas published rules for the administration of the ordinance.
What Employers Are Covered By The Ordinance?
The ordinance applies to any “person, company, corporation, firm, partnership, labor organization, non-profit organization or association that pays an employee to perform work for an employer and exercises control over the employee’s wages, hours and working conditions.” The ordinance does not limit its coverage to employers with a minimum number of employees.
The ordinance does not apply to (1) the United States, (2) a corporation wholly owned by the United States, (2) the state or a state agency, (3) the City of Dallas, or (4) any other agency that cannot be regulated by city ordinance.
What Employees Are Covered By The Ordinance?
The ordinance covers any “individual who performs at least 80 hours of work for pay within the City of Dallas, Texas in a year for an employer, including work performed through the services of a temporary or employment agency.” The ordinance does not apply to independent contractors or unpaid interns.
How Much Earned Paid Sick Time Is Mandated By The Ordinance?
An employer must grant one hour of earned paid sick time for every 30 hours worked for the employer within the geographic boundaries of the City of Dallas. Earned paid sick time is accrued starting at the later of the employee’s start date or the effective date of the ordinance. Earned paid sick time accrues only in hourly increments, unless the employer has written policies establishing the accrual of earned paid sick time in fraction of an hour increments.
An employee who is rehired by an employer within six (6) months following separation from employment may use any earned paid sick time available to the employee at the time of the separation.
An employee does not lose earned paid sick time upon transfer to a work site outside the geographic boundaries of the City of Dallas.
Are There Any Caps To Earned Paid Sick Time Mandated By The Ordinance?
An employee of an employer with 15 or fewer employees, excluding family members, can only accrue up to 48 hours of earned paid sick time in a year, unless the employer chooses a higher limit. An employee of a larger employer can only accrue up to 64 hours of earned paid sick time in a year, unless the employer chooses a higher limit. All available earned paid sick time up to the applicable limit shall be carried over to the following year.
An employer is not required to allow use of earned paid sick time by an employee for more than eight (8) days in a year.
For What Absences Can Earned Paid Sick Time Be Used By An Employee?
An employee is entitled to available earned paid sick time if the employee makes a timely request for the use of earned paid sick time before the employee’s scheduled work time. There is an exception for unforeseen circumstances.
Available earned paid sick time can be requested by an employee for an absence caused by:
- the “employee’s physical or mental illness, physical injury, preventative medical or heath care or health condition”;
- the “employee’s need to care for their family member’s physical or mental illness, physical injury, preventative medical or health care or health condition”; or
- the “employee’s or their family member’s need to seek medical attention, seek relocation, obtain services of a victim services organization, or participate in legal or court ordered action related to an incident of victimization from domestic abuse, sexual assault, or stalking involving the employee’s family member.”
The term “family member” is defined as an employee’s “spouse, child, parent, any other individual related by blood, or any other individual whose close association with an employee is the equivalent of a family relationship.” Family members include “step parents, step-sibling, step-children, step-grandparents, step-grandchildren, anyone who can be claimed as a dependent, and anyone who can claim someone as a dependent.”
Can An Employer Require Verification Before Paying For Sick Time?
An employer may adopt reasonable verification procedures to establish that an employee’s request for earned paid sick time for more than three (3) consecutive work days is a qualifying absence. An employer may not adopt verification procedures that would require an employee to explain the nature of domestic abuse, sexual assault, stalking, illness, injury, health condition, or other health need when making a request for earned paid sick time.
How Is Earned Paid Sick Time Calculated?
The employer shall pay earned paid sick time in an amount equal to what the employee would have earned if the employee had worked the scheduled work time, exclusive of overtime premium, tips or commissions, but no less than the state minimum wage.
Rules published by the City of Dallas address the calculation of paid sick time for piece rate employees, salaried employees, employees whose hourly rate of pay fluctuates and employees who are scheduled to work shifts of indeterminate length.
What Does The Ordinance Proscribe?
An employer may not:
- require “an employee to find a replacement to cover the hours of earned paid sick time as a condition of using earned paid sick time”;
- erase earned paid sick time upon “an employee’s transfer to a different facility, location, division, or job position with the same employer”; or
- “transfer, demote, discharge, suspend, reduce hours, or directly threaten such actions against an employee because that employee requests or uses earned sick time, reports or attempts to report a violation of [the ordinance], participates or attempts to participate in an investigation or proceeding under [the ordinance]; or otherwise exercises any rights afforded by [the ordinance].
Unlawful retaliation may include the following: “considering use of paid sick time in performance reviews or setting wages … reporting or threatening to report an employee or employee’s family member to law enforcement in connection with the use of paid sick time, or discouraging … employees from using their accrued paid sick leave.”
What Employment Policies Are Unaffected By The Ordinance?
The ordinance does not affect employer policies which allow an employee to donate available earned paid sick time to another employee.
The ordinance does not prohibit an employer from allowing an employee to voluntarily exchange hours or voluntarily trade shifts with another employee or prohibit an employer from establishing incentives for employees to voluntarily exchange hours or voluntarily trade shifts.
What Records Are Mandated Of Employers By The Ordinance?
On at least a monthly basis, an employer must provide electronically or in writing to each employee a statement showing the amount of the employee’s available earned paid sick time.
An employer that provides an employee handbook to its employees must include therein a notice of employee rights and remedies under the ordinance.
Each employer must display a poster in a conspicuous place or places where employee notices are customarily posted. The prescribed poster can be found here.
An employer which, as a matter of company policy, uses a 12-consecutive-month period other than a calendar year for purposes of determining an employee’s eligibility for and accrual of earned paid sick time must provide its employees with written notice of such policy.
Does The Ordinance Provide Employees With A Private Of Action?
No. For violations, the ordinance only provides for a civil penalty assessed by the City.
How Is The Ordinance Enforced?
The ordinance is enforced by the director of the department designated by the city manager for its implementation, administration and enforcement. A complaint alleging a violation must be filed with the director by or on behalf of an aggrieved employee with two years from the date of the violation.
What Is The Civil Penalty For Violation Of The Ordinance?
No civil penalty for a substantive violation may be assessed prior to April 1, 2020. Thereafter, an employer which fails to cease a violation by the end of the 10th business day after the employer receives notice of the violation by the director is liable to the City for a civil penalty of up to $500 for that violation.
Civil penalties of $500 per violation for retaliation, however, can be assessed on and after the applicable effective date.
Are Any Affirmative Defenses Available To Employers Under The Ordinance?
The ordinance does not expressly provide any affirmative defense for a failure to pay an employee earned paid sick time. Presumably, the City will consider any lawful reason for an adverse employment action taken against an employee who has (1) requested or used earned paid sick time, (2) reported a violation of the ordinance, or (3) participated in an administrative proceeding under the ordinance.
What Is The Effective Date Of The Ordinance?
The ordinance is effective August 1, 2019. For employers with five (5) or less employees, however, the ordinance is not effective until August 1, 2021.
When Is The Time for Dallas Employers To Implement Earned Paid Sick Leave Policies?
For Dallas employers with more than five (5) employees, the time is now. There is presently no legislation being considered in Austin, nor litigation pending in Dallas, which will forestall the ordinance from taking effect on August 1, 2019.
Robert G. Chadwick, Jr. frequently speaks to non-profit organizations regarding labor and employment issues. To contact him for a speaking engagement please e-mail him at email@example.com.