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City of Dallas Paid Sick Leave Ordinance: How Will it Affect Your Business?

City of Dallas Paid Sick Leave Ordinance: How Will it Affect Your Business?
Many Dallas business owners are confused and upset over the city’s shaky preparation for enacting the new ordinance (some terms of which were not yet finalized up to the time the ordinance took effect)...

The other proverbial shoe dropped late last month when two Collin County companies, set to be subject to Dallas’ new paid sick leave ordinance because of the amount of time their employees work in Dallas, sued the city with the help of the Texas Public Policy Foundation (TPPF). Dallas’ ordinance violates the companies’ constitutional rights, according to the foundation, because they are required to allow their employees to use their earned leave at any of the company’s locations, regardless of whether that location is in Dallas.

City of Dallas Website: Paid Sick Leave Ordinance

The TPPF is helping represent business groups suing to stop similar ordinances in Austin and San Antonio, and both of those ordinances have been delayed pending a definitive outcome. Opponents of the ordinances, which require employees to compensate employees with one hour of paid sick time for every 30 hours they work, argue that the ordinances are an unconstitutional end run around Texas state law, which prohibits municipalities from setting a minimum wage higher than that required by the federal government.

A judge has yet to issue an order on the Dallas ordinance, which a city official confirmed took effect August 1, and that the city expects covered businesses—those with at least six employees—to comply with. However, the city will not enforce the ordinance until April 1, 2020. Businesses with five or fewer employees have until August 2021 to comply. The ordinance covers employees who work at least 80 hours a year in Dallas. Businesses with at least 15 employees can cap accruals at 64 hours and businesses with fewer employees can limit annual accruals to 48 hours.

Many Dallas business owners are confused and upset over the city’s shaky preparation for enacting the new ordinance (some terms of which were not yet finalized up to the time the ordinance took effect), and opinions about the law are mixed. If it remains in effect, the ordinance will create a burden for local businesses in terms of accrual, tracking, and uncertainty over enforcement.

At Luxor Staffing, we understand that Dallas employers have many unanswered questions about this ordinance. We, too, are concerned about the impact this ordinance will have on our client employers. Consequently, we are committed to handling all of the administrative tasks related to the accrual tracking and payout. We have staff allocated to these tasks so that our clients can concentrate on running and growing their businesses.

Regardless of how the pending lawsuits and the status of these ordinances play out, Luxor Staffing will remain dedicated to providing the same level of hands-on service our clients have come to expect.


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