The bill, S.B. No. 2072, proposes the establishment of a paid parental leave program administered by the Texas Workforce Commission, which will be funded through employer contributions. It introduces Chapter 320 to the Labor Code, defining key terms such as "Employee," "Employer," and "Program." The bill stipulates that eligible employees, who have worked a minimum of 540 hours in the past six months or on a full-time basis for the past three months, are entitled to 12 weeks of paid leave for specific family-related events, including the birth or adoption of a child. The amount of paid leave is tiered based on the employee's wage, with provisions ensuring that employees do not receive paid leave in addition to any leave provided under the federal Family and Medical Leave Act.

Additionally, the bill mandates that employers contribute 0.15 percent of all wages paid during the calendar year to fund the program, with specific exemptions for employers with self-funded leave policies. The Texas Family Fund will be created to manage these contributions, and the bill outlines the administration of the fund, including the role of the comptroller. The Texas Workforce Commission is required to establish the program and adopt necessary rules by January 1, 2026, with the program set to take effect on September 1, 2026.

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