The bill, H.B. 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. Specifically, it 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 these requirements or related rules. This change 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 new provisions will take effect on September 1, 2025, allowing time for the TWC and employers to adjust to the updated auditing process.

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