Relating to the required earnings statement provided by employers; creating civil liability; providing an administrative penalty.
The implementation of SB1484 will lead to increased accountability for employers regarding wage reports. Should an employer fail to provide the required earnings statement, they can be held civilly liable, facing penalties of $50 for the first instance and $100 for subsequent failures, capped at a total of $4,000. This provision underscores a significant shift in labor regulations, enhancing employee protections and potential legal recourse.
SB1484 addresses the requirements for employers in Texas concerning the distribution of earnings statements to their employees. The bill mandates that, at the end of each pay period, employers must provide a written or electronic earnings statement that includes vital information such as employee name, rate of pay, total pay earned, deductions, and hours worked or units produced. This legislation aims to ensure transparency in how employees are compensated and informed about their earnings.
Notably, the bill includes stipulations that allow the Texas Labor Commission to impose administrative penalties on employers who do not comply. Specifically, an administrative penalty of $250 for the first instance of non-compliance and $1,000 for each additional failure per pay period aims to discourage violations of the earnings statement requirement. Such penalties may raise concerns among business owners regarding compliance and the financial impacts of potential legal actions, sparking debates on employee rights versus employer burdens.