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 employers with 50 or more employees, excluding independent contractors and certain state employees. Eligible employees can request 60 days of paid leave for specific circumstances, including the birth or adoption of a child or providing foster care. The paid leave is calculated based on the employee's average weekly wage over the preceding 12 months and cannot be taken in addition to leave under the federal Family and Medical Leave Act. Employees must take the leave within one year of the qualifying event and are limited to one leave period per year.

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 before the leave requirement takes effect, employees will not be entitled to paid leave, and employers will not be required to cover the costs. The bill specifies that it will not take effect until September 1, 2025, and employees will not be eligible for paid leave under this chapter before January 1, 2027.

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