Austin’s Third Court of Appeals Holds Austin’s Paid Sick Leave Ordinance Unconstitutional

Austin’s paid sick leave ordinance, which was supposed to go into effect this past October, has been held unconstitutional by the Third Court of Appeals in Austin. The court of appeals held that the ordinance establishes a “wage” and, as such, it is preempted by Texas Minimum Wage Act. The Texas Minimum Wage Act specifically precludes municipalities from regulating the wages paid by employers who are subject to the Fair Labor Standards Act (FLSA) and specifically provides that the Texas Minimum Wage Act supersedes a “wage” established in an ordinance governing wages in private employment. The court of appeals remanded the case back to the district court, instructing the lower court to grant the State’s application for temporary injunction and for further proceedings consistent with its ruling. Continue reading

Maryland’s Healthy Working Families Act Requires Employers in the State to Provide Sick/Safe Leave

Executive Summary: On January 12, 2018, the Maryland Legislature overrode Governor Hogan’s 2017 veto of the Maryland Healthy Working Families Act (the “Act”). As a result, Maryland employers with 15 or more employees are now required to provide for up to 40 hours of paid sick leave on annual basis to eligible employees, and employers with 14 or fewer employees must provide up to 40 hours of unpaid sick/safe leave on an annual basis to eligible employees. In addition to the sick leave requirement, the Act imposes notification and recordkeeping requirements and sets out a significant enforcement scheme that includes the potential imposition of treble damage penalties for violations.

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