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 program will provide eligible employees with 12 weeks of paid leave for specific family-related events, including the birth or adoption of a child. Eligibility requires employees to have worked a minimum of 540 hours in the preceding six months or on a full-time basis for the last three months. The amount of paid leave will vary based on the employee's wage, with specific percentages outlined for different income brackets.

Additionally, the bill mandates that employers contribute 0.15 percent of all wages paid during the calendar year to fund the program, with certain exceptions for employers with self-funded leave policies. The Texas Family Fund will be created to manage these contributions, and the bill stipulates that benefits will only be payable to the extent that funds are available. The Texas Workforce Commission is tasked with establishing the program by January 1, 2026, and the provisions of the bill will take effect on September 1, 2025.

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