The "Earned Paid Sick Leave" bill mandates that Texas employers provide paid sick leave to their employees, establishing a new chapter in the Labor Code that defines key terms such as "employee," "employer," and "family member." Employers with 15 or more employees must offer a minimum of 64 hours of paid sick leave per calendar year, while those with fewer than 15 employees must provide at least 48 hours. Sick leave will accrue at a rate of one hour for every 30 hours worked and can be carried over to the next calendar year, subject to certain limitations. The bill also includes protections against retaliation for employees who request or use sick leave and requires employers to maintain records and inform employees of their rights.

Additionally, the bill establishes a framework for employees to file complaints regarding violations of paid sick leave provisions, with the Texas Workforce Commission responsible for investigating these claims. Employers found in violation may face administrative penalties, including a $500 penalty for specific violations and up to $100 for others. The bill ensures that employees hired on or after January 1, 2027, will begin accruing sick leave from that date, while those hired before will start accruing sick leave on the same date but can use it 90 days thereafter. The legislation also mandates that the Texas Workforce Commission make information about employee rights and employer best practices publicly available by September 1, 2026, and ensures that existing collective bargaining agreements remain intact.

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