Appeals Court Temporarily Blocks Austin's Paid Sick Leave Ordinance

Date: August 20, 2018

Late on Friday, Aug. 17, the Texas 3rd Court of Appeals temporarily blocked the city of Austin’s ordinance requiring private employers to offer paid sick leave. The requirement would have taken effect Oct. 1.

NFIB is among the business groups that filed suit this spring challenging the legality of the ordinance. NFIB State Director Annie Spilman says the appeals court’s decision is a big relief for small-business owners.

“This fight isn’t over,” she says. “When it handed down its order Friday evening, the court said that ‘enjoining the ordinance is necessary to preserve the parties’ rights until disposition of the appeal.’ 

“Local measures such as Austin’s paid sick leave ordinance, resulting in a patchwork of rules and regulations that create major problems for small businesses, especially those with mobile employees.

“Austin’s ordinance violates the Texas Constitution. The state Supreme Court has said that government must justify economic regulation of this sort. There must be a ‘substantial relationship’ to a legitimate governmental interest. And Austin can’t make that showing here. For that matter, San Antonio and other cities contemplating paid sick leave laws should be on notice.”

Click here to learn more about NFIB’s lawsuit.


Related Content: Small Business News | Labor | Legal | Texas

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