H.B. No. 5164 introduces a new chapter, Chapter 320, to the Labor Code, establishing provisions for paid parental leave for certain employees in Texas. The bill defines "employee" as individuals working full-time for an employer with 50 or more employees, excluding independent contractors and certain state employees. Eligible employees are entitled to 60 days of paid leave for specific events such as the birth or adoption of a child or providing foster care. The leave must be taken within one year of the qualifying event and cannot exceed one instance within a 12-month period. Employers are prohibited from taking adverse employment actions against employees who utilize this leave.

To fund the paid leave, employers may either pay the costs directly or maintain an insurance policy that covers these expenses. If no insurance policy is available by October 1 of the year preceding the implementation of the leave requirement, employees will not be entitled to paid leave, and employers will not be required to cover the costs. The provisions of this act will take effect on September 1, 2025, with employees not being eligible for paid leave until January 1, 2027.

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