Texas appellate courts have struck down municipal paid sick leave ordinances in Austin, Dallas, and San Antonio as preempted under the Texas Minimum Wage Act. HB 2127 (2023) further codifies preemption by barring local regulation of employment benefits and leave policies.
In Texas Association of Business v. City of Austin, 565 S.W.3d 425 (Tex. App. Austin 2018), the court held that municipal mandatory paid sick leave ordinances violate Texas Labor Code 62.0515 because requiring paid leave functionally raises the wage floor. Similar rulings invalidated Dallas and San Antonio ordinances. The Texas Supreme Court declined review, leaving the appellate decisions controlling. HB 2127 (the Texas Regulatory Consistency Act, 2023) codifies field preemption over labor and employment regulation, expressly barring cities from mandating paid sick leave, predictive scheduling, or employer benefits beyond state minimums.
Mandatory local paid leave ordinances are unenforceable; HB 2127 authorizes injunctive relief, declaratory judgment, and standing for any person aggrieved by enforcement.
See how Schertz's paid leave preemption rules stack up against other locations.
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