House Bill No. 3763 amends Section 213.055 of the Labor Code to establish new guidelines for audits conducted by the Texas Workforce Commission (TWC) on employers. The bill introduces a new subsection (d) that stipulates the TWC may only conduct an audit to determine compliance with labor requirements if there is reason to believe that an employer has violated the relevant laws or rules. This change explicitly prohibits the commission from conducting random audits for compliance purposes.

The bill aims to ensure that audits are based on specific evidence of non-compliance rather than random selection, thereby protecting employers from unwarranted scrutiny. The provisions of this act are set to take effect on September 1, 2025.

Statutes affected:
Introduced: Labor Code 213.055 (Labor Code 213)